Mobile data continued to be the biggest growth area for Vodacom, and the company increased data revenue in its South African operations by 12.8% to R23.4 billion over the past year.
This is according to Vodacom’s annual results for the year ended 31 March 2018.
The strong mobile data revenue, which now contributes 42.8% of Vodacom’s service revenue, was thanks to data traffic growth of 43.7%.
To support the growing demand for data, Vodacom increased the coverage and capacity of its network, and drove 3G and 4G device uptake.
Vodacom increased its 3G population coverage to 99.4% and 4G coverage to 80.1% – up from 75.8% a year ago.
“4G customers on our network increased 44.8% to 7.3 million, while the average megabyte per smart device increased 18.4% to 784MB,” said Vodacom.
Lower data prices
Vodacom stated that it has reduced out-of-bundle spend using a three-pronged approach:
- Improving customer data usage notifications.
- Reducing of out-of-bundle rates by up to 50%.
- Introducing more value offers on our contract plans.
“In the second half, 12% of data revenue was out-of-bundle revenue, down from 22% in the first half last year,” said Vodacom.
Vodacom added that its bundle strategy is working well, and that data bundle purchases increased 54.7% to 766 million.
“Improved in-bundle usage has helped us to reduce the overall effective price per megabyte by 21.6% this year.”