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Nashua sells subscriber bases to MTN, Vodacom

2014-04-14 10:01:00| Telecompaper Headlines

(Telecompaper) South Africa's Nashua Mobile has inked separate agreements with MTN and Vodacom to dispose off its subscriber bases. Nashua's parent company Reunert said it was unlikely that the business would generate acceptable returns, so it is selling the subscriber bases to the two operators for a combined gross sum of ZAR 2.26 billion. For the past several years Nashua Mobile has been trading in a saturated, highly competitive market. It has experienced declining ARPU due to lower network tariffs and lower out of bundle spend by customers. The decline in the least cost routing business and competitive pricing in the market have further reduced revenue. Nashua Mobile said its also pursuing the sale of its Cell C customer base to a third party. The culmination of these transactions will result in the closure of Nashua Mobile and its operations. The acquiring parties will maintain the current contractual arrangements with customers on the same terms. Closing of the transaction is subject to the approval of the Competition Authorities, until which Nashua Mobile's operations and customer services will continue uninterrupted. 

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Category:Telecommunications

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