http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.89Change: 0.03
R/$ = 12.69Change: 0.00
Au 1085.44 $/ozChange: -6.01
Pt 961.50 $/ozChange: -4.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
May 19, 2009

Vodacom to increase broadband roll-out in Africa

Back
Vodacom CEO Pieter Uys discusses its outlook for the months ahead.
 
 
 
DRC|Africa|Africa|Democratic Republic Of Congo|DRC|Tanzania|Products|Services|Operations
DRC|Africa|Africa|Democratic Republic Of Congo|DRC|Tanzania|Products|Services|Operations
drc|africa-company|africa|democratic-republic-of-congo|drc-country|tanzania|products|services|operations
© Reuse this



The last quarter of the 2009 financial year was a good indication of what JSE-listed telecommunications group Vodacom could expect going forward CEO Pieter Uys said on Tuesday.

Uys explained during a results presentation in Johannesburg that Vodacom South Africa’s subscriber numbers had increased by 1,2-million during the quarter ended March 31, 2009, almost one-half of the 2,8-million new subscribers it had added for the full financial year.

Further, the prepaid churn from the South African businesses had also improved in the quarter, he added, saying that this was a positive signal where the business was going.

In addition, while trading conditions in the international business remained challenging, conditions had not worsened, said Uys, adding that conditions for the international businesses could only improve from here on in.

The group had achieved a “good set of results”, given the economic slowdown, with good growth achieved in all measures, he commented.

Vodacom South Africa’s revenues had grown by 10,8%, despite a slowdown in the number of contract customers, given the economic downturn. However, the number of prepaid customers had increased.

The group noted that more affordable products were also driving usage by contract and prepaid customers, with outgoing traffic having increased by 8,2% in the year.

The total average revenue per user (Arpu) had increased by 3,9% to R133, while prepaid Arpu had increased by 9,7% to R68. Contract Arpu had declined by 2,5%, as customers were more cautious about phoning outside their bundles.

DATA GROWTH

Meanwhile, the group had achieved 97,8% growth in data traffic during the year, while data revenues were up 27,9%.

Data revenue from connectivity and usage had increased by 69,3%, mainly as a result of an 80% increase in broadband customers to over 720 000.

The group planned to further roll out and increase its broadband and mobile Internet usage in Africa.

Growth consultancy firm Frost & Sullivan information and communication technology analyst Lindsey McDonald highlighted that the growth in data traffic and broadband customers was where future revenue growth could be generated.

“This growth is significant, but at the same time, it’s coming off a relatively small base. We still haven’t seen the ramp-up in broadband services from fixed-line operators that we would like, so Vodacom’s coverage is perceived to be the most comprehensive and reliable. That’s why it has become a leader,” she said in a statement.

She added that Vodacom South Africa has also been able to offer a greater range of top-end products, such as Blackberry and smart phones, than its competitors, which had given it a “distinct advantage” in this segment of the market.

INTERNATIONAL OPERATIONS

Meanwhile, the group’s international business, comprising operations in the Democratic Republic of Congo (DRC), Mozambique, Lesotho and Tanzania, had achieved a 29,9% increase in revenues and a 30,7% growth in customer base.

Margins for all the international operations, except for the DRC, had improved in the year, the group reported.

The DRC operation had experienced a severe slump as the global economic slowdown impacted on the resource-driven economy.

Arpu in both the DRC and Tanzania had declined, but Mozambique’s Arpu had increased by 9%. Vodacom had introduced a number of more affordable products in these markets to increase usage.

The group had also increased its network coverage in Tanzania and Mozambique, while also making investments in data networks in Tanzania and Lesotho.

Vodacom was confident that its acquisition of African network and satellite services firm Gateway at the end of 2008, would increase its customer reach and network in Africa.

The acquisition was made to reposition the group as a provider of converged communication services and not only a mobile phone operator on the continent.

Uys noted that the group was in the process of integrating the Gateway business into the group.

McDonald noted that the Gateway acquisition was important for the group as it provided an instrument to provide services into Africa.

“But finding new targets will be tough. MTN and Zain are likely to have already considered good targets and there might not be much left for Vodacom,” she added.

Further, she noted that Vodacom would have to ensure that it provided something particularly suited to the needs of the continent and not merely what Vodafone offered, just under a different name.

Meanwhile, the group planned to invest a further R8-billion in capital expenditure in the 2010 financial year to ensure its continued growth in sub-Saharan Africa, but said that it would be cautious when spending the money, given the economic conditions.

Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Telecoms News
The Independent Communications Authority of South Africa (Icasa) on Monday announced that it was “eager” to “reinitiate” the licensing process for the assignment of the high-demand spectrum. Icasa, which was responsible for the allocation of spectrum to broadcasting...
Minister of Telecommunications and Postal Services Siyabonga Cwele
Minister of Telecommunications and Postal Services Siyabonga Cwele says he agrees with the Public Service Commission’s recommendation that there should be an independent inquiry into the management affairs of the department. The Minister is considering placing...
Telecommunications group Telkom on Friday said it had posted a 1.7% uptick in net revenue for the three months to June 30, on the back of a strong performance by mobile on data revenue and higher fixed-line subscription revenue. Mobile net revenue for the first three...
Article contains comments
Article contains comments
More
 
 
Latest News
The Department of Labour (DoL) will on Tuesday start hosting a series of national public hearings to review the farming and forestry sectors’ minimum wages and conditions of employment as prescribed in Sectoral Determination (SD) 13. The department explained in a...
The Independent Communications Authority of South Africa (Icasa) on Monday announced that it was “eager” to “reinitiate” the licensing process for the assignment of the high-demand spectrum. Icasa, which was responsible for the allocation of spectrum to broadcasting...
Lien Visage, a community development worker at Donkerbos, near Rietfontein, has won the Witzenberg regional of the 2015 Farmworker of the Year competition, an initiative celebrating excellence in the Western Cape’s agricultural sector. “South Africa has earned a...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Daimler truck test engineer Dirk Stranz pushes one button, and then retracts his hands from the steering wheel of the Mercedes-Benz Future Truck 2025. “And now the truck is driving itself.”
The statutory body responsible for skills development and support in the banking sector, BANKSETA, was investing R68-million in the capacity building project of the University of Venda (UniVen), announced Bankseta company secretary Caroline King at a media event in...
LIONEL MOYAL Cloud services providers must compete against other cloud services providers for business by providing up-to-date systems and services
Legacy information technology (IT) systems are becoming increasingly obsolete because of the maturity, efficiencies and cost effectiveness of cloud-based IT services, says information and communication technology major T-Systems subsidiary Intervate head Lionel...
ARMANDÉ KRUGER Balancing the collection and processing of data must be aligned to strategy
Many complementary services enable companies to derive broad value from data inside and outside them. The complexity of data management means that companies’ strategies determine the various data systems and functions they will use, says PBT Group regional sales...
The South African Civil Aviation Authority (SACAA) has announced that it had awarded the country’s first remotely piloted aircraft systems (RPAS) pilot’s licence. It was issued on Friday, July 10, to SACAA employee and qualified commercial pilot Nicole Swart,...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96