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South Africa bundle adoption
South Africa LTE/4G coverage
South Africa data progression
Grow data
Only 56.9% of our total active customers are currently using data.
In South Africa, only 47.1% of active devices on our network are
smart data devices; there are substantial opportunities for data
revenue growth within our existing customer base. There is also
significant potential to extend this customer base, particularly in
our International operations where there is low, but rapidly growing,
mobile penetration.
Our strategy for growing data revenue is predicated on four pillars:
having the best network; getting a device fit for customer specific
needs into every customer’s hands; offering affordable value across
all segments; and providing more reason to consume data through
the provision of content. We have seen encouraging performance
this year in each of these areas:
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À
Network:
We have increased our addressable market by
extending our 3G and LTE/4G network coverage in South Africa,
2G and 3G coverage in our International operations and LTE/4G
in Lesotho.
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À
Devices:
We have continued to drive the uptake of smart devices
through the provision of financing and increasing the availability
of lower cost devices. This has been assisted by our increased
purchasing power through our relationship with Vodafone and
the Vodafone Procurement Company, but constrained by
exchange rate challenges. This year, we introduced a tablet at a
very low price point (R89 on a 24-month contract or R1 099 on
prepaid), bundled with free educational content. In South Africa,
the number of smart devices on our network increased by 22.8%
to 14.2 million, with tablets increasing 56.3% to 1.7 million.
The Vodacom branded smart devices sold accounted for 25.7%
of total device sales.
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À
Value:
Our bundle strategy seeks to offer value to all customer
segments and fulfil various needs. Our bundle validity period
varies between hourly, daily, weekly and monthly validity, while
bundle sizes are available in bite size portions such as 10MB, with
super bundles of 20GB for our more data hungry customers. We
continue to drive customers to this more responsible worry-free
payment method. As a result, the effective price per MB reduced
by 13.6% in South Africa, contributing to the 85.9% increase in
total bundle sales. The effective price per MB reduced by 28.6%
in International. Average monthly data used by customers on
smart devices has continued to increase, with the resulting
benefits for ARPU highlighting the value in encouraging
customer migration to 3G and LTE/4G enabled devices.
À
À
Content:
One of the areas we believe we need to improve on is
content. This ensures that we maximise value for shareholders
on the data that we carry across our network, and that we do not
just deliver as a conduit for other services. We have made some
initial progress in bringing content to consumers – such as
music streaming, gaming, TV and video, news and sport –
through various distribution channels.
Grow data (million)
2015
2016
98%
32.1
34.2
98%
16.6
1 .7
Active
customers
Active data
customers
98%
11.6
14.2
98%
1.5 2.8
Active
smart devices
LTE
customers
LTE/4G coverage
Mar 2015
Mar 2016
Sep 2013
58.2%
34.8%
8.3%
Number of data bundles sold (million)
2015
184
2016
343
+85.9%
Our performance
Our business
Governance review
Administration
Overview
29
Growth