Criminals cost Vodacom R100 million per year

South Africa’s telecommunications sector has struggled with battery theft for years, leading to billions in additional costs for companies and significant customer connectivity issues.

Vodacom said it noticed an increase in battery theft and vandalism incidents at its base stations in certain parts of the country leading up to the festive season.

As a result, the group has ramped up its efforts to curb these incidents, appealing to stakeholders from law enforcement to communities to help them do so.

“Battery theft and vandalism at our base stations continue to be a huge challenge for the telco sector,” Johan van Graan, Chief Risk Officer at Vodacom Group, said. 

Although the rate of battery theft and vandalism has remained stable in some regions, with no significant increase in the number of incidents, it remains alarming. 

“In September alone, our operations in KwaZulu-Natal, Mpumalanga, and Northern Gauteng regions recorded the highest number of attempted thefts, each accounting for 40% or more such incidents,” Van Graan said.

“These criminal activities cause disruptions to network services, resulting in frequent downtime for customers.” 

“The consequences go beyond the costs of repairing and restoring infrastructure. They have a significant impact on communities that depend on connectivity as a vital lifeline.”

Cellular base stations are often the only source of connectivity for many communities, especially in remote areas. 

When these sites are vandalised or their batteries stolen, hundreds of thousands of people lose access to communication. 

This impacts individuals, small businesses, and emergency situations where making a call could save lives.

Vodacom explained that it loses about R100 million every year due to vandalism and battery theft. 

This includes the cost of restoring connectivity after such incidents, which can cost up to R100,000 per site, depending on the extent of the damage and location. 

Vodacom explained that this money could otherwise be invested in network upgrades and rural expansion. 

Incidents of battery theft are not new and have plagued South Africa’s telecoms sector for years.

For example, earlier this year, MTN revealed that ongoing power cuts, vandalism, and battery theft forced them to open a new tab South African arm to invest R1.5 billion to ensure its mobile network operates effectively.

Data shows that during the longer consecutive hours of power cuts last year, vandalism and battery or generator theft at base stations spiked, MTN said, resulting in tower companies recording a 250% increase in the loss of generators.

“Incidents of battery theft have been stable with no significant increase in this financial year,” van Graan said. 

Some of the reasons for this are:

• The increase of site hardening where sites become more of a security vault to protect the infrastructure from thieves.
• Cementing the batteries in vaults and installing concrete cubes to house the batteries.
• The use of hi-tech security technologies deployed on sites to detect and deter criminals.
• Community engagement initiative.
• Partnerships with private security companies and law enforcement.

“Our community engagement initiative, where we have partnered with local communities and work with police to serve as monitoring personnel to help safeguard our sites, has yielded positive results,” he added. 

“Critically, our partnership with private security companies and law enforcement agencies has been a major contributor in preventing break-ins and led to successful arrests of criminals and prosecution.”

Vodacom explained that the rising price of copper has led to a surge in copper theft across South Africa, causing widespread disruptions. 

This crisis has severely impacted the electricity grid and essential services such as hospitals, railways, and telecommunications in some areas. 

The telecoms industry, in particular, is experiencing more frequent cable theft incidents, which has left thousands without connectivity for days.

“With the world experiencing a shortage of copper, a key component in many electrical products, cable theft is now having a major impact on local telco operations,” van Graan explained.  

“It doesn’t help that scrap metal dealers have suddenly cropped up everywhere and with little intervention and regulation around cables, making this crime easy cash for criminals.”

Vodacom explained that it has invested in AI technology, which has enhanced its security systems and led to faster apprehension of these criminal syndicates.

However, their number one line of defence remains local communities, who they urged to report any suspicious activity.  

“While we have invested significantly in boosting our security measures at our base station sites, we acknowledge that the fight against vandalism and theft is ongoing with crime syndicates finding new ways to carry out their illegal operations,” van Graan said.  

“That is why we are appealing to all stakeholders, from law enforcement to communities, to play a part in curbing these offences.” 

As part of these efforts, Vodacom is collaborating with residents and community policing forums and encouraging community members to report criminal activity. 

“Putting a stop to vandalism and theft is in the interest of everyone, ensuring uninterrupted access to the benefits of connectivity.”

This article was first published by Daily Investor and is reproduced with permission.