The biggest challenges Vodacom faces (graphs)

The data traffic demand goes up but the prices must come down ... so service levels will deteriorate. No-one can invest more and more to meet the demand at a high Service Level and get less and less income. That is not good business.
 
BeVonk! said:
The data traffic demand goes up but the prices must come down ... so service levels will deteriorate. No-one can invest more and more to meet the demand at a high Service Level and get less and less income. That is not good business.
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Economies of scale much?

Also, the revenue graph should be normalised for inflation. Makes the pictures (from VC's view) worse.

I suspect their loss is CellC's gain. It will only get worse as more people notice the actual call rates the pay.
 
The definition of an active customer is flawed across all SP's - an active customer is AFAIK still an activated SIM irrespective if it is being used or not. Not quite sure how many months of inactivity until an inactive SIM results in an inactive subscriber and if those stats include telemetric devices as well (i.e. no physical user interacting with the device). I think a third of the numbers shown are a more real figure.
 
MagicDude4Eva said:
The definition of an active customer is flawed across all SP's - an active customer is AFAIK still an activated SIM irrespective if it is being used or not. Not quite sure how many months of inactivity until an inactive SIM results in an inactive subscriber and if those stats include telemetric devices as well (i.e. no physical user interacting with the device). I think a third of the numbers shown are a more real figure.
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Doubt it include telemetry.
 
Would think three data points is insignificant... Looking at the last 10 data points may indicate that they are still growing.
 
Moved all our voice and data sims to Cell C over the past years. It made a significant difference to our financial results!
 
with voice and text (SMS) networks have 2 choices: (1) try to sweat the usage - push up prices as there is decreasing usage in the knowledge that voice is dying; or (2) cut voice pricing in order to keep customers on your network and generate revenue elsewhere.

VC and MTN seem quite keen to go with 1 whilst CellC and TM want to go with 2. The asymmetric interconnect and existing market share probably explains the divergent strategy. VC is however aware of the value of (2) on the high range customers as evidenced by their "limitless" approach.
 
good news.
They need a hard kick in the arse if they are going to compete.

For me it just shows the beginning of the end for the monopoly.
 
marine1 said:
With what 20 billion in profits? I doubt Vodacom cares about quality of service.
Their business model seems to be working perfectly
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You see, "shareholders" always want more growth and the executive feels pressure to deliver.

I just love the good dividend payouts.
 
Paul Hjul said:
with voice and text (SMS) networks have 2 choices: (1) try to sweat the usage - push up prices as there is decreasing usage in the knowledge that voice is dying; or (2) cut voice pricing in order to keep customers on your network and generate revenue elsewhere.

VC and MTN seem quite keen to go with 1 whilst CellC and TM want to go with 2. The asymmetric interconnect and existing market share probably explains the divergent strategy. VC is however aware of the value of (2) on the high range customers as evidenced by their "limitless" approach.
Click to expand...

Problem is if you lose the customer on voice, you lose them on data (smartphones using both, not like the old days where data was consumed by data dongles plugged in into PCs/laptops).
 
And this will not make them change their business strategy. If they do, it would probably be to screw the consumer. Nice to see Vodacon being screwed for a change :)
 
supersunbird said:
Problem is if you lose the customer on voice, you lose them on data (smartphones using both, not like the old days where data was consumed by data dongles plugged in into PCs/laptops).
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well that is why a strategy of keeping prepaid and cheap handset tariffs up whilst introducing voice limitless contracts for smartphone users is so powerful.
 
Still way over my monthly budget.
I have 3 cellular contracts and they cost me less than a single "limitless" contract.
 
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