MOBILE
VODACOM’ S DRIVE TO BRING DOWN DATA PRICES
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I ’ s no secret that the global economy
has been under strain since the 2008 / 9 economic crisis. Global financial institutions and our reserve bank have downward revised South Africa’ s GDP in recent years. This in turn has put pressures on the growth and investment projections that companies set themselves year-on-year while rising to the challenge of social-economic development. Mobile communication companies like Vodacom have invested heavily in infrastructure and complemented this with investment in human resources, communities, and contributions to economic transformation.
Despite the challenging economic environment, Vodacom continues to outperform its targets- evidenced by the Group’ s 5.3 % growth in service revenue in the first half of the current financial year and its strong performance in 2015 / 16. This has enabled Vodacom to prioritise its commitment to the digital and knowledge economy by investing in its network infrastructure. Including the current financial year, Vodacom will have invested R27.4 billion in its network in South Africa over a three-year period- as pressures to keep up with coverage, speed, and quality demands intensify.
In the same period, the company invested over R270 million in communities, while total expenditure with black-owned entities amounted to R7.2 billion- of which R5
“ We have been involved in a number of constructive engagements to find a workable solution to make broadband even more accessible and affordable for South Africans.”
billion was with black-women-owned entities. This is the result of Vodacom’ s focus on preferential procurement as well as supplier and enterprise development.
Given the impact of the economic slowdown on the South African consumer and global trends on the cost of data, the cost to communicate in South Africa has been a hot topic in recent times. It was the focus in public hearings led by the Telecommunications and Postal Services Portfolio Committee in September 2016, while making broadband more accessible and affordable is also one of the objectives outlined in the White Paper published by the Department of Telecommunications and Postal Services a month later.
Vodacom’ s price transformation
Accordingly, Vodacom’ s pricing transformation plan has seen the company reduce the price of data and voice by more than 60 % and 57 % respectively over the past four years. However, Vodacom acknowledges that more needs to be done to respond to consumer needs and the company remains committed to data cost transformation. At the beginning of 2017, Vodacom launched Siyakha( iSizulu for we build), a platform aimed at lowering the cost to communicate for the emerging market while simultaneously seeking to increase digital and social connectivity.
“ The launch of Siyakha is key to helping improving the lives of people that can least afford communication costs. We also continue to improve on the segment approach that recognises the needs of various sectors of society with specific reference to the youth and base of the pyramid segments. This reflects our core belief that through investments and providing relevant communication and technology solutions, we can change people’ s lives.” says Shameel Joosub, CEO of Vodacom Group.
Smaller bundles and personalised offers through Just 4 You contributed to bundle sales of more than 410 million in the most recent quarter and means Vodacom is on
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