MobiNil to reap post-paid harvest

Egyptian GSM operator MobiNil is set to reap the benefits of promoting post-paid subscriptions, judging by recent research showing a sharp rise in this type of payment method.

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By  Richard Brown Published  June 18, 2002

According to a new study by the Arab Advisors Group, a substantial number of MobiNil subscribers switched from prepaid to post-paid as a result of the company’s strategy to target post-paid sales.

The report reveals that while MobiNil’s subscriber base rose just 3.34% during the first quarter of 2002 to a total of 2.102 million, post-paid subscribers increased by 22.7% during the same period to 399,380.

Shahin Shahin, Arab Advisors analyst, comments: “The fact that the growth in post-paid subscribers exceeded the growth in total subscribers clearly shows the internal churn effect from prepaid to the more predictable, and potentially more loyal, postpaid subscribers.”

Shahin notes that the churn from prepaid to post-paid may have contributed to a 14.53% increase in MobiNil’s net income in the quarter.

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