How Vodacom is reducing voice prices
Vodacom CEO Shameel Joosub said the strong growth in mobile data usage means they can reduce contract and prepaid subscribers’ voice rates.
Vodacom’s interim results for the 6 months ending 30 September 2015 showed a 33.4% growth in data revenue in South Africa over the past year.
“Our LTE/4G customers in South Africa, now approaching two million, consume almost three times more data as compared with 3G customers,” said Joosub.
Speaking to Business Day TV, Joosub said their price transformation is underpinning their data growth. “What we are doing is transforming prices and bringing prices down.”
He said they use the strong data growth to “bring down voice prices in the background”. “We have seen a 17.6% decrease in voice pricing over the last six months.”
The lower contract voice rates are achieved by moving subscribers to new plans. “We hope that most customers would have been moved to our new price plans by the end of the year,” said Joosub.
In prepaid, said Joosub, the lower voice rates are coming from the adoption of voice bundles. “Over the last six months we have sold 500 million prepaid voice and data bundles.”
Price per minute
Vodacom effective voice prices.
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