Vodacom CEO Shameel Joosub revealed that the effective price of data on the Vodacom network is between 40c per MB and 50c per MB. Joosub further said that the effective price for voice calls is around R1 per minute.
Speaking to Moneyweb’s Hilton Tarrant, Joosub said that most Vodacom customers on data bundles are paying as little as 5c or 6c per megabyte. “The effective price per megabyte is in the 40s now and dropping,” said Joosub.
“When I draw comparisons to Europe and to Spain I’d say that … our pricing in South Africa is much lower than it is in Europe in terms of data.”
When it came to the effective price of voice calls, Joosub said that their blended price per minute is now R1 and their pre-paid price per minute is 71c. “The contract pricing would obviously be a little bit higher because of the level of subsidy included in the price itself,” said Joosub.
Strong data results
Vodacom reported very strong financial results on Monday (12 November 2012), with a 8.4% rise in revenue for the six months ended September 2012, to R34.43 billion.
Data played a big role in Vodacom’s continued growth. “If we look at the data revenue growth in South Africa it grew 13.5%, 10% in Q1 and 17% in Q2,” said Joosub.
“I think that was due to price cuts that we did in August last year, but the underlying demand for data is very strong.”
“Data traffic on the network is up 43% year on year, our active data users are up 27% year on year, data bundle users are up 35% year on year and our smartphone users have grown 37% to 5.3 million. So we’ve added 1.4 million new smartphones in the last six months,” said Joosub.
Strong smartphone and tablet growth
While there was a decline in data dongle growth, the strong growth from smartphones and tablets more than made up for it.
“The mobile dongle revenue has slowed down due to intense competition, but that’s obviously more than made up for with growth in tablets,” said Joosub.
“Tablets are growing. We have over 250,000 tablets live on the network and that’s quite impressive even when I draw comparisons to what we were doing in Spain.”