Vodacom reveals 18.9% reduction in its effective mobile data prices

Vodacom CEO Shameel Joosub has revealed that the effective price for mobile data on Vodacom’s network declined by 18.9% in the last quarter.

Vodacom published a trading update for the quarter ended 30 June 2017, which showed that the company’s data revenue in South Africa grew 18.1% to R5.5 billion.

This increase in data revenue was made possible by the company adding 463,000 4G customers in the quarter.

Vodacom now has 5.5 million 4G customers thanks to lower LTE device costs, which is a direct consequence of improvements in exchange rates.

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

Vodacom said it has continued to introduce new initiatives to reduce the out-of-bundle data spent by its customers and to give them more control.

“Together with our successful data pricing strategy of making data more affordable, this has resulted in a 56.1% increase in data bundle sales,” Vodacom said.

Joosub said there was a 9.1% and 18.9% decline in effective voice and data prices respectively over the quarter.

“This reflects our commitment to driving down the cost to communicate in South Africa,” Joosub said.

“There is more work to be done on this front, and we will be introducing additional measures this year to give greater control to customers by improving our out-of-bundle pricing,” said Joosub.

Vodacom continued to invest in its network, with its R1.8-billion capital expenditure focused on maintaining its network lead.

“Our continued investment in infrastructure resulted in 75.9% 4G and 99.2% 3G population coverage,” the company said.

Now read: Disappearing data – Vodacom explains

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Vodacom reveals 18.9% reduction in its effective mobile data prices