Frost & Sullivan Finds Double Digit Subscriber Growth in Southern African Mobile Markets

CAPE TOWN, South Africa, April 29, 2010 - The mobile communications markets of Botswana, Namibia, Zambia and
Zimbabwe have all experienced subscriber growth over ten percent in the last
five years. This has created a powerful network effect, which continues to
drive market growth, albeit at lower levels. Value-added and data services
are increasingly becoming revenue drivers, particularly in competitive
markets such as Botswana and Namibia, which have high mobile penetration
levels.

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New analysis from Frost & Sullivan (www.wireless.frost.com),
Southern African Mobile Communications Market, finds that Zambia currently
contributes almost half of all revenues in these four countries, followed by
Botswana with 26 per cent. This is expected to change by 2015 when Zambia's
share will reduce to 38 per cent, but Zimbabwe will contribute one third of
the total revenues.

If you are interested more information on this study, please send an
e-mail to Patrick Cairns, Corporate Communications, at
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"These countries differ significantly in the state of their mobile
communication markets," notes Frost & Sullivan industry analyst Protea
Hirschel. "Botswana and Namibia are characterised by high mobile penetration
rates, which is more than 100 per cent in the case of Botswana. The small
addressable markets in these two countries constrain long-term growth and the
average revenue per user (ARPU) for voice is declining due to greater
competition. Therefore, mobile operators are focused on retention strategies
and extending data offerings to protect their market shares."

However, Zambia and Zimbabwe have much lower mobile penetration rates
with a high demand for voice services, particularly in Zimbabwe. Zimbabwe is
a special case as it has recently emerged from a record-breaking
hyperinflation. This has resulted in degraded network infrastructure as
little investment was made.

"Consumers in these four countries have looked to mobile communications
as an alternative to fixed line networks," Hirschel says. "These have been
not been extended appreciably over the last ten years. Additionally,
consumers are likely to look to mobile operators for Internet connectivity."

Third-generation (3G) networks are already well established in Namibia
and Botswana paving the way for mobile operators to offer advanced data and
value-added services. So far, only one operator in Zimbabwe has launched 3G,
while in Zambia, 3G will be launched in 2010.

However, new subscribers are increasingly poor, resulting in a decline in
the average blended voice ARPU, exacerbated by challenging global
macroeconomic conditions. At the same time, operating costs for mobile
operators have soared and profit margins have come under pressure. For
instance, inadequate power grids require mobile operators to have backup
generators, which are adversely affected by the rising fuel prices.

"Value propositions take on special importance in markets where poverty
levels are high and ensure that subscriber growth rates and revenues are
maintained in the face of increased competition," explains Hirschel.
"Additionally, up-to-date network technology and alternative power generation
combined with infrastructure sharing allow for costs to be controlled."

In more mature markets such as Botswana and Namibia, mobile operators
have identified business as a lucrative sector and are using innovative
telecommunication solutions to maintain blended ARPU levels. Network
infrastructure that supports broadband speeds is a vital component of this
strategy.

"While ARPU levels for pre-paid subscribers are lower than for post-paid
customers, innovative retention strategies and increasing consumer
participation in mobile communications with subsidised handsets can ensure
low price elasticity even in a competitive market," concludes Hirschel. "This
will allow operators to migrate subscribers towards a higher value."

Southern African Mobile Communications Market is part of the Mobile &
Wireless Growth Partnership Services programme, which also includes research
in the following markets: Angolan Mobile Market, South African Contact
Broadband Market, Sub Saharan African CMDA Markets, and Mozambique Mobile
Communications Market. All research services included in subscriptions
provide detailed market opportunities and industry trends that have been
evaluated following extensive interviews with market participants.

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    Southern African Mobile Communications Market
    M49A

    Contact:
    Patrick Cairns
    Corporate Communications - Africa
    P: +27-18-464-2402
    E: patrick.cairns@frost.com

www.frost.com

Patrick Cairns, Corporate Communications - Africa of Frost & Sullivan, +27-18-464-2402, patrick.cairns at frost.com