Vodacom CEO’s warning to Rain

[Newsfeed]

Vodacom CEO’s warning to Rain

Vodacom CEO Shameel Joosub has warned Rain that it will face network capacity constraints in the future, which can cost a lot of money to fix.

Speaking to eNCA’s Taking Stock, Joosub explained that Vodacom partnered with Rain to get access to their spectrum to address its network capacity constraints.

 

[Pavan]

Well played Shameel. Aligning the market to the thought process you will use as the foundation of your sales pitch to the regulator (and public) when you make an offer to purchase Rain from the Stellenbosch boy's club...

 

[rpm]

Well played Shameel. Aligning the market to the thought process you will use as the foundation of your sales pitch to the regulator (and public) when you make an offer to purchase Rain from the Stellenbosch boy's club...

I doubt an acquisition will be allowed by the Competition Commission.

Strange to think that Vodacom was a shareholder in WBS, and had access to that spectrum (they used some of it for their WiMax network). They decided to sell that shareholding to get more spectrum.

 

[access]

i know this is more about spectrum, but im wondering, have any big south african providers bothered with laying their own undersea cable?

i know there are locals laying undersea cables elsewhere in the world.

 

[DXL]

If anyone missed it.

Vodacom CEO is advising RAIN to increase their prices or face network congestion.

I still struggle to work out how the Spectrum in the 800mhz for LTE will help relieve spectrum constraints when the networks have so much 1800mhz at their disposal. Maybe spectrum in the 2.6 Ghz may help.

Networks have the Licence to print money.

Telkom offers me 12 Gigabytes Prepaid for R135.
Vodacom R150 a Gig

 

[BBSA]

I don't understand why anyone would use Vodacom.

 

[AlphaJohn]

I don't understand why anyone would use Vodacom.

Coverage.

 

[BBSA]

Coverage.

You can roam on Vodacom or MTN , then using the other networks.

 

[Swa]

Spectrum isn't their problem. From all accounts it was the network itself.

 

[Dan C]

Still very happy with my Rain products.

 

[jannievanzyl]

Strange to think that Vodacom was a shareholder in WBS, and had access to that spectrum (they used some of it for their WiMax network).

Indeed.

 

[Thor]

Bruce is such an awesome interviewer.

 

[DXL]

Spectrum isn't their problem. From all accounts it was the network itself.

The networks dont want to put up more antennae on other operators networks.
Roll out more sites maximizing use of existing towers and high rise buildings.

 

[Pavan]

I doubt an acquisition will be allowed by the Competition Commission.

Strange to think that Vodacom was a shareholder in WBS, and had access to that spectrum (they used some of it for their WiMax network). They decided to sell that shareholding to get more spectrum.

Vodacom were using the sale to strengthen their position in future spectrum bids - "The Independent Communications Authority of SA (Icasa) has warned that no company that directly or indirectly owns spectrum in 2,6GHz and 3,5GHz bands will be eligible to take part in the planned auction of spectrum in the 2,6GHz and 3,5GHz ranges. "

Regarding the competition committee approval, I concur. This is a very real barrier to entry. Regardless, Vodacom will benefit from being their largest customer, including having access to the best wholesales pricing (tiered and volume based) as well as their tower collocation contracts. Beyond the obvious competitive advantages, the largest customers have significant influence over shareholders and strategy.

 

[Johnatan56]

i know this is more about spectrum, but im wondering, have any big south african providers bothered with laying their own undersea cable?

i know there are locals laying undersea cables elsewhere in the world.

We have way above the needed international capacity, as far as I am aware, and it's "quite cheap" (compared to building yourself and running that), so why would you build more?

 

[kianm]

Hmm i was skeptical to check what the man was on about, when i see Vodacom all I hear is $$$ leaving our pockets

 

[neoprema]

Vodacom justifying their insane cost per GB?

 

[access]

We have way above the needed international capacity, as far as I am aware, and it's "quite cheap" (compared to building yourself and running that), so why would you build more?

was just wondering, with 500-1000mbps products its not going to be way above needed for long

 

[ArtyLoop]

Pot calling the Kettle Black...

 

[Boerq]

Ja - Vodacom talking from experience. Even cell C did this. when they launched 3G way back. It was fun for the early adopters. 6 months later it was as bad as the rest.