Massive increase in smartphone data use

Vodacom has released its quarterly update for the period ending 30 June 2014, which showed that the company’s group revenue increased 4.3% to R18.287 billion over the reporting period.

In its South African operations revenue increased 1.7% to R14.791 billion, driven by a 16.9% growth in equipment revenue (device and accessories revenue).

Vodacom South Africa’s service revenue fell 2.0% to R11.442 billion, mainly due to a 50% cut in mobile termination rates in April 2014, which led to a 44% reduction in incoming voice revenue.

It’s all about data

Vodacom South Africa’s data revenue grew 18.4% to R2.948 billion, to represent 25.8% (2013: 21.3%) of service revenue.

“We increased the data allocated in our integrated plans and launched time-based micro bundles to reduce our effective price of data by 30.3% year on year,” Vodacom said. On a quarterly basis, effective price per megabyte declined 4.2%.

“We attracted 1.81 million new data users to grow our data customers to 17.01 million, and increased total data usage by 70%,” Vodacom said.

Vodacom said it continues to make progress with its handset financing programme to put data capable devices into people’s hands.

The number of active smartphones and tablets on Vodacom’s network increased 19.3%, to 8 million devices.

The average monthly data usage on smartphones increased 44.5% to 312 MB per device and usage on tablets increased 43% to 848 MB per device.

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Massive increase in smartphone data use