Vodacom makes more money from data than voice
Vodacom’s data revenue in South Africa contributed 42.6% of its total service revenue, the company announced in its results for the six months ended 30 September 2017. Data revenue grew 15.0% to R11.4 billion in the period, which was slightly down in the second quarter as a result of a strong comparative quarter and the introduction of promotions such as Meg Your Day. Voice revenue declined by 4.8% to R11.1 billion, which means that Vodacom’s data revenue has overtaken voice revenue.
Vodacom said its promotional initiatives helped add 356,000 data customers during the period, increasing Vodacom’s total data subscribers in South Africa to 19.9 million – up 9.6% YoY.
Subscribers on its LTE and 4G network increased by 62.8% to 6 million, while average monthly data usage on smart devices increased by 19.5% to 776MB. Data bundle sales grew by 55.5% to 347 million, and as a result of improved in-bundle usage, the effective price per MB on Vodacom’s network was reduced by 24.2%. Vodacom said it has introduced initiatives to improve the customer experience in out-of-bundle-data spend, and is driving data-usage education to give customers more control.
This includes the network reducing OOB rates for prepaid customers to R0.99 per MB from 15 October.
The out-of-bundle rate for post-paid customers was reduced from R1 per MB to R0.89 on 1 October.