Big surprise as Vodacom’s voice and data revenue declines in South Africa

[Bradley Prior]

Big surprise as Vodacom’s voice and data revenue declines in South Africa

Vodacom has released its trading update for the quarter ended 31 December 2018, which shows a decline in its mobile voice, mobile data, and mobile messaging revenue in South Africa.

Vodacom SA’s overall service revenue declined by 0.9%, which the company said was a result of its customers optimising promotional data as part of a Summer campaign and a subdued consumer spending environment.

 

[LazyLion]

Ag Shamepies!

 

[Pitbull]

I'm sure that is part of their strategy? This Ticket thing they have is brilliant, and the reason I moved to Vodacom. So revenue on Data is down, yet the got a new subscriber for Cell services and Fibre.

 

[supersunbird]

I'm sure that is part of their strategy? This Ticket thing they have is brilliant, and the reason I moved to Vodacom. So revenue on Data is down, yet the got a new subscriber for Cell services and Fibre.

What ticket thing?

 

[Datura]

I think he means this: https://www.vodacom.co.za/vodacom/services/vodacom-ticket

 

[Pitbull]

What ticket thing?

You can buy "tickets" for data services.

As an example:

. R29 for 1GB WhatsApp data valid for 30 days (I think this has now gone to R35)
. Social media 100MB for 1 hour R 5.00
. Video 1GB for 1 day R8

Things like that. Works brilliantly if you need to maybe check something on YouTube but don't want to use your data bundle as an example

 

[The_MAC]

You can buy "tickets" for data services.

As an example:

. R29 for 1GB WhatsApp data valid for 30 days (I think this has now gone to R35)
. Social media 100MB for 1 hour R 5.00
. Video 1GB for 1 day R8

Things like that. Works brilliantly if you need to maybe check something on YouTube but don't want to use your data bundle as an example

I'm more of a SIM-only contract type of guy - ensure the package needs my needs totally from a voice and data perspective. This fluctuating cell phone bill thing wouldn't work for me. It's easier for me to budget with a single fixed cost, even if prepaid works out cheaper some months.

 

[DXL]

I have been waiting for the day for Vodacoms revenue drop.

Another Multichoice in the coming.

Neotel must work fast to rollout their 4G network to most of the populated areas of the country.

Then South Africans can choose between :

1. Telkom
2. Rain
3. Neotel

Let the Revenue of the Big 3 Drop by 10% then we will start to see Competition in action.

With 6 Operators competing for my Cash we should see some decent pricing on 4G Data.

Days of Megabytes are over.

South Africans must start buying in Gigabytes.

PREPAID Prices we need :
R10 - 1 Gigabyte
R30 - 4 Gigabytes
R60 - 8 Gigabytes
R100 - 15 Gigabytes
R200 - 40 Gigabytes
R300 - 75 Gigabytes

All Bundles valid for 60 Days.

 

[rodmur]

awful customer service and unstoppable irritating messages

 

[Sugarman]

"Big Surprise"

Lol

 

[battletoad]

You can buy "tickets" for data services.

As an example:

. R29 for 1GB WhatsApp data valid for 30 days (I think this has now gone to R35)
. Social media 100MB for 1 hour R 5.00
. Video 1GB for 1 day R8

Things like that. Works brilliantly if you need to maybe check something on YouTube but don't want to use your data bundle as an example

Seems like a lot of effort. In comparison, my monthly FreeMe 2GB @ R150 gives:
* 2GB data
* iirc 10GB youtube/google music/selected muaic streaming services
* 5GB social media/whatsapp
* 300 telkom to telkom minutes

...over 30 days.

The vodacom ticket equivalent would be:
* 10GB video @ R80 for 10 days
* 5GB whatsapp @ R145 for 30 days

...for a total of R225, excluding 2GB data and 300 voda to voda minutes.

Sure, the ticket system is more fine grained and you only buy what you need, but I'd find the effort tiresome after a while.

 

[Pitbull]

Seems like a lot of effort. In comparison, my monthly FreeMe 2GB @ R150 gives:
* 2GB data
* iirc 10GB youtube/google music/selected muaic streaming services
* 5GB social media/whatsapp
* 300 telkom to telkom minutes

...over 30 days.

The vodacom ticket equivalent would be:
* 10GB video @ R80 for 10 days
* 5GB whatsapp @ R145 for 30 days

...for a total of R225, excluding 2GB data and 300 voda to voda minutes.

Sure, the ticket system is more fine grained and you only buy what you need, but I'd find the effort tiresome after a while.

I like it as I load the WhatsApp ticket - All the WhatsApp shyte doesn't affect my data bundle used for e-mails and other stuff. And if I really want to watch stuff on youtube when bored at the damn fishing as an example, I just add the video ticket. Stuff I don't normally do, but I can use it fi needed for a small fee.

 

[battletoad]

I like it as I load the WhatsApp ticket - All the WhatsApp shyte doesn't affect my data bundle used for e-mails and other stuff. And if I really want to watch stuff on youtube when bored at the damn fishing as an example, I just add the video ticket. Stuff I don't normally do, but I can use it fi needed for a small fee.

Sure, depends on one's use case.

I used to occasionally commute on bus to work up until last year, and that youtube bundle on freeme was amazing during trips!

 

[Swa]

Competition finally taking its toll?

 

[system32]

Competition finally taking its toll?

Not sure since product sales are up.

What's interesting is

Data traffic on its network up 41.4%.​

Smart devices increased by 13.3% to 20.2 million​

Average gigabytes per smart device increasing by 31.9% to 1.1GB​

4G customers increased by 40.5% to 9.2 million.​

BUT

Voice revenue declined by 0.5%​

Data revenue declined by 0.4%​

Messaging revenue declined by 10.9%.​

So despite a 41.4% increase in data traffic, data revenue was down 0.4%.
Sounds pretty serious when Vodacom have 41.4% increase in product sales, but revenue is down.

 

[Swa]

Not sure since product sales are up.

What's interesting is

Data traffic on its network up 41.4%.​

Smart devices increased by 13.3% to 20.2 million​

Average gigabytes per smart device increasing by 31.9% to 1.1GB​

4G customers increased by 40.5% to 9.2 million.​

BUT

Voice revenue declined by 0.5%​

Data revenue declined by 0.4%​

Messaging revenue declined by 10.9%.​

So despite a 41.4% increase in data traffic, data revenue was down 0.4%.
Sounds pretty serious when Vodacom have 41.4% increase in product sales, but revenue is down.

It's because of these table scrap 1- and 7-day bundles. Most of the serious data users have fled to other networks. So now they have to give more data but barely realise any revenue from them. Wondering if Vodacom uses real data metrics or bundles purchased.

 

[MEIOT]

Nah - not a big surprise at all

 

[BBSA]

Nah - not a big surprise at all

This, I was always surprised that so many still use them.

 

[marine1]

but but but "effective...."
Blah blah blah and yet their profits are what exactly?

 

[AstroTurf]

South Africans must start buying in Gigabytes.

PREPAID Prices we need :
R10 - 1 Gigabyte
R30 - 4 Gigabytes
R60 - 8 Gigabytes
R100 - 15 Gigabytes
R200 - 40 Gigabytes
R300 - 75 Gigabytes

Oddly I occasionally use Vodacom's 1GB for 1 Hour at R12...