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opportunities is predicated on four key pillars: segmented and
commercially led network deployment; accelerating the
penetration of smart devices; offering affordable value across
all segments by increasing bundle engagement; and providing
more reasons to consume data through the provision of digital
products and services.
We have seen encouraging performance this year in each of
these areas:
g
g
Commercial network deployment:
We have expanded our
addressable market for data by extending our 3G and 4G
network coverage in South Africa, Tanzania and Lesotho, and
our 2G and 3G coverage in our other International operations.
In South Africa, we achieved 75.8% 4G coverage, and are
beginning to make progress in rolling out fibre.
g
g
Device penetration:
We have continued to drive the uptake
of 3G and 4G smart devices by providing various financing
solutions, such as contract financing over 24 months, subsidies
on data-enabled devices, and lay-bye options. We have also
increased the availability of lower-cost devices through targeted
procurement and by developing our own affordable branded
devices. Although assisted by our greater purchasing power
through the Vodafone Procurement Company, we have faced
constraints in some of our markets with exchange rate
depreciation increasing import costs. This year, there were
11.7 million 3G devices on our network, and the number of
4G devices increased 75.9% to 5.4 million in South Africa.
g
g
Bundle engagement:
Our pricing transformation strategy and
targeted personalised customer offerings, aimed at providing
customers with greater value and keeping them in-bundle,
continues to deliver results. In South Africa, 72.8% of our
contract revenue is now in-bundle (2016: 71.3%), contract churn
reduced from 8.5% to 4.2%, and we achieved 2.8% contract
ARPU growth, with the increase in average monthly data used
by customers on smart devices highlighting the value in
encouraging customer migration to 3G and 4G devices. Data
bundles sold increased 44.8% to 495 million aided through
personalised offers presented to customers through ‘Just 4 You’
and other customer value management activities based on their
behaviour. Our focus on improving the value offered to
customers resulted in a 16.0% reduction in the price per
megabyte.
g
g
Digital services:
We are making further progress in increasing
the availability of digital products and services, such as the
provision of digital content, mobile financial services, insurance,
IoT, and various e-Commerce offerings.
Data progression
(million)
Customers
Data
customers
Active
smart devices
4G
customers
■
FY16
34.2
37.1
18.1 19.5
14.2
16.8
2.8
5.1
Data bundles sold
(million)
FY15
FY17
184
342
495
+44.8%
FY16
■
FY17
+86.7%
4G customers
25