Vodacom’s goal to cut data and smartphone prices

Vodacom had a great 2019, reaching a number of important milestones, and has goals to cut prices in 2020, the network told MyBroadband.

Its achievements include reaching Level 1 BEE status, increasing its investment in network infrastructure, and reducing the cost to communicate.

“This is a highly capital-intensive industry, which means investing in the right technologies at the right time is a competitive advantage and is an area that enables us to deliver an exceptional customer experience in all of our markets,” said Vodacom.

It sees this through the likes of customer NPS leadership scores as well as being named South Africa’s leading network in customer satisfaction rankings.

When it comes to its mobile business in South Africa, reducing the cost to communicate is also a major metric for Vodacom’s progress.

Reducing data prices

“For Vodacom’s Consumer Business Unit, improving customer experience and driving down the cost to communicate remain the most pressing priorities,” Vodacom said.

“This year we reduced out-of-bundle tariffs by up to 70% as well as reduced monthly bundle tariffs by circa 25%. This includes a 33% reduction in our monthly 1GB bundle through our MyVodacomApp, all of which has contributed to a 50% decline in effective data rates since March 2016.”

The company added that another important factor was driving down the price of mobile devices.

“Hence, we launched a 4G smart feature phone called the Vodacom Vibe 4G,” it said.

“It retails for R299 and also drives smartphone penetration while helping to bridge the digital divide, giving customers the ability to connect with their loved ones via social media.”

Additionally, the company saw impressive growth in its OTT divisions – with Video Play reaching 1 million people and MyMuze growing to 5.6 million subscribers.

Technology and partnerships

Vodacom has led the way in many technical innovations and partnerships over the last year, it added.

“We were first to launch support for eSIM devices in South Africa, allowing users with eSIM-enabled devices to connect to the Vodacom network,” Vodacom said.

“Our strategic focus on financial services delivered strong performance, driven by our Airtime Advance platform and insurance as well as the launch of innovative products. For instance, in June we launched VodaPay enabling direct airtime purchases, bill payments for electricity, and a host of other payments.”

The company said good progress on its fibre rollout was another milestone, and it more than doubled the number of homes connected, while in the IoT space it acquired a strategic stake in IoT.nxt

This will bring “a number of advantages to our existing IoT capability, including class-leading platform technology”, said Vodacom.

Now read: Vodacom and MTN have no effective competition – Telkom

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Vodacom’s goal to cut data and smartphone prices