Vodacom’s voice revenue declines, but data is making up for it

Vodacom has published a trading update for the quarter ended 30 June 2017, which showed a decline in voice revenue and a significant rise in data revenue.

Vodacom added 2.3 million customers in South Africa in the quarter, reaching a total subscriber base of 39.4 million in the country.

The company sustained its service revenue growth in South Africa, which reached R13.1 billion for the quarter.

Vodacom SA’s voice revenue declined by 4.2%, which the company said can be considered to be low, thanks to the success of its personalised voice bundle strategy.

Data revenue grew 18.1% to R5.5 billion, contributing 42.2% of service revenue in South Africa.

“We added 463,000 4G customers in the quarter, reaching a total of 5.5 million customers as devices became more affordable as a result of improvements in exchange rates,” Vodacom said.

Active smart devices on the network increased by 18.4% to 16.6 million, with the average monthly data usage on these devices increasing to 734MB per device.

Vodacom said it has continued to introduce new initiatives to reduce the out-of-bundle data spend by its customers and to give them more control, resulting in an improved customer experience.

“Together with our successful data pricing strategy of making data more affordable, this has resulted in a 56.1% increase in data bundle sales and an 18.9% reduction in the overall effective price per MB,” Vodacom said.

Now read: Disappearing data – Vodacom explains

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Vodacom’s voice revenue declines, but data is making up for it