This is why Vodacom’s data prices look lower
Vodacom announced in its latest annual results that the effective price per megabyte on its network had decreased by 16% over the past year.
This is not due to price cuts during the fourth quarter of its financial year, however, said Vodacom CEO Shameel Joosub.
Speaking at Vodacom’s results presentation, Joosub said the decrease in Vodacom’s effective price per MB is due to increased data bundle sales.
Data bundle sales grew by 44.8% to 495 million in the period, with Just 4 You packages helping to drive much of the growth, said Joosub.
“By offering subscribers better value, that in itself creates a lower [effective] price,” he said.
Joosub said Vodacom is deliberately trying to “reduce the out-of-bundle issue” by sending subscribers SMS reminders when their bundles are about to deplete, and suggesting Just 4 You bundles.
While the effective price is going down, data traffic is up by 43.2% and data revenue grew by 19.7%.
As more customers move to bundles, the effective price per MB will continue decrease, and as long as revenue growth is strong, Vodacom will continue to cut prices, said Joosub.
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