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Stakeholder
‘hot topics’
The cost of accessing communications services remains an
ongoing concern for customers and policy makers. In South Africa,
the cost of data received particular attention following a
#datamustfall campaign launched in September 2016 by a
South African radio personality. This culminated in hearings at a
Parliamentary Portfolio Committee on the suggested social
impacts of perceived high data costs, where we highlighted the
impact of our pricing transformation strategy, and our personalised
packages aimed at giving customers greater value. We have various
initiatives in place aimed at driving down the cost of data and
encouraging customers to optimise the use of bundles. These
initiatives include:
g
g
Reducing our out-of-bundle rates for prepaid tariffs by 25% (from
R2/MB to R1.50/MB), and our out-of-bundle rate for all contracts
to R1. Further price decreases are planned for this year;
g
g
Running targeted consumer campaigns to increase awareness on
how to buy maximum-value bundles, check balances and more
efficiently manage purchased data;
g
g
Empower customers to keep track of data usage and optimise
value by providing free access to the MyVodacom app;
g
g
Improving our in-bundle and out-of-bundle smart notifications
for customers;
g
g
Appropriately size customers’ bundle needs by recommending
personalised offers to customers which are determined based
on the customer’s previous usage behaviour; and
g
g
Providing zero-rated (free) access for Vodacom customers to
certain propositions through Siyakha (a platform that assists in
addressing the cost to communicate for those that need it most).
These include career, education and health websites, as well as
Facebook Flex, a free, text-based version of Facebook.
Communication costs
(#datamustfall)
Given the obvious social benefits associated with improved connectivity, coupled with recent developments in digital technology in
such areas as education, healthcare, financial services and agriculture, there are growing calls from government, regulators and
consumers to further improve access to digital services. This is evidenced in particular, for example, by the South African National
Integrated ICT Policy White Paper. Vodacom’s Vision 2020 outlines our goal of being ‘a leading digital company that empowers a
connected society’, removing barriers to access digital and playing a transformative role in education, healthcare, financial services
and agriculture. We already have many initiatives in place, including:
g
g
Our Siyakha platform, offering zero-rated portals for school learners, university students and job seekers;
g
g
Substantial investments in extending our networks into rural areas across our countries of operation;
g
g
Promoting commercially viable mobile agricultural solutions through our Connected Farmer platform;
g
g
Our groundbreaking M-Pesa programme that provides affordable access to financial services to more than 12.9 million customers,
many of whom live in remote rural areas; and
g
g
Driving the availability of high-quality low-cost smartphones and tablets.
Increasing access and delivering social transformation
through digital services
In October 2016 the Minister of Telecommunications
and Postal Services published the cabinet-approved
National Integrated ICT Policy White Paper
(White Paper). The White Paper sets out a framework
on how the government wants to provide access to
modern communications infrastructure and services
to facilitate the entry of new players and the
meaningful participation of all citizens, including
those in rural areas. Its adoption will require various
amendments to existing laws and regulations
flowing from the Electronic Communications Act.
During May 2017, a high level agreement was
reached between the Ministry and the industry
stakeholders, providing for:
g
g
Assigned spectrum not to be returned, at least
not before the end of the operator’s licence
period, as was originally contemplated in the
White Paper;
g
g
Licensees committing to buy a set minimum
capacity from the Wholesale Open Access
Network (WOAN) to ensure its viability;
g
g
A study to be conducted by the Ministry to
determine the appropriate quantity of high-
demand spectrum that will be necessary for the
WOAN to roll out a 4G/LTE network; and
g
g
The remaining high-demand spectrum, after
allocation to the WOAN, to be assigned to
incumbent licensees through an allocation
process yet to be determined, and possible
inclusion of rural coverage obligations.
South Africa Integrated
Information and Communication
technology ICT Policy
White Paper
Vodacom Group Limited
Integrated report for the year ended 31 March 2017
18