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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