{"id":154290,"date":"2016-06-08T12:00:53","date_gmt":"2016-06-08T10:00:53","guid":{"rendered":"http:\/\/mybroadband.co.za\/news\/?p=154290"},"modified":"2016-06-08T12:02:12","modified_gmt":"2016-06-08T10:02:12","slug":"vodacoms-biggest-blunders","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/cellular\/154290-vodacoms-biggest-blunders.html","title":{"rendered":"Vodacom&#8217;s biggest blunders"},"content":{"rendered":"<p>Vodacom is the largest telecommunications company in South Africa, with 34.1 million customers and the largest mobile network.<\/p>\n<p>Vodacom\u2019s voice network covers nearly the whole of the country, while its <strong><a href=\"http:\/\/mybroadband.co.za\/news\/cellular\/153896-vodacoms-broadband-network-covers-nearly-all-south-africans.html\">broadband network offers a population coverage of 98.3%<\/a><\/strong>.<\/p>\n<p>The company also has a strong presence in many other African countries &#8211; Tanzania, the Democratic Republic of Congo, Mozambique, and Lesotho.<\/p>\n<p>Vodacom is one of SA\u2019s biggest success stories, but that does not mean the company did not make mistakes along the way.<\/p>\n<p>Here are some of Vodacom\u2019s biggest blunders over the last 22\u00a0years of operation.<\/p>\n<hr \/>\n<h3 class=\"my-4\">Vodacom lost billions by buying Gateway Communications<\/h3>\n<p><a  data-lightbox=\"post-image\" href=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2016\/01\/Gateway.jpg\" rel=\"attachment wp-att-153015\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-153015\" src=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2016\/01\/Gateway.jpg\" alt=\"Gateway\" width=\"630\" height=\"420\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2016\/01\/Gateway.jpg 630w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2016\/01\/Gateway-250x166.jpg 250w\" sizes=\"(max-width: 630px) 100vw, 630px\" \/><\/a><\/p>\n<p><a href=\"http:\/\/mybroadband.co.za\/news\/cellular\/5016-vodacom-buys-gateway.html\"><strong>Vodacom bought Gateway Communications<\/strong><\/a> in December 2008 for $675 million as part of its African expansion plans.<\/p>\n<p><a href=\"http:\/\/mybroadband.co.za\/news\/business\/10367-vodacom-hurt-by-gateway.html\"><strong>Things did not work out<\/strong><\/a>, and Vodacom had to take an impairment charge of R3.2 billion on the unit after traffic volumes fell.<\/p>\n<p>In June 2012, Vodacom entered into an agreement to sell certain investments, supplier agreements, and assets of a Gateway unit &#8211; Carrier Services &#8211; to PCCW Global for $26.4 million.<\/p>\n<hr \/>\n<h3 class=\"my-4\">Vodacom selling its stake in iBurst meant it lost out on valuable spectrum<\/h3>\n<p><a  data-lightbox=\"post-image\" href=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2014\/10\/iBurst-for-sale.png\" rel=\"attachment wp-att-112212\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-112212\" src=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2014\/10\/iBurst-for-sale.png\" alt=\"iBurst for sale\" width=\"630\" height=\"420\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2014\/10\/iBurst-for-sale.png 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2014\/10\/iBurst-for-sale-250x166.png 250w\" sizes=\"(max-width: 630px) 100vw, 630px\" \/><\/a><\/p>\n<p><a href=\"http:\/\/mybroadband.co.za\/news\/wireless\/2023-vodacom-ups-its-stake-in-iburst.html\"><strong>Vodacom owned a 24.9% shareholding in iBurst\/WBS<\/strong><\/a>, which gave the company access to iBurst\u2019s 1,800MHz and 2.6GHz spectrum.<\/p>\n<p>Vodacom had a choice to increase its iBurst stake, or sell its shares and apply for new spectrum through Icasa. Vodacom put its trust in Icasa\u2019s spectrum process,\u00a0and <strong><a href=\"http:\/\/mybroadband.co.za\/news\/business\/12597-vodacom-and-iburst-start-divorce-proceedings.html\">sold its stake in iBurst.<\/a><\/strong><\/p>\n<p>Icasa\u2019s spectrum plans never materialised, and Vodacom lost its shareholding &#8211; and access to spectrum.<\/p>\n<hr \/>\n<h3 class=\"my-4\">Vodacom made many poor investment decisions, and also handled these investments poorly<\/h3>\n<p><a  data-lightbox=\"post-image\" href=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2015\/11\/Vodacom-call-center-banned.jpg\" rel=\"attachment wp-att-145951\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-145951\" src=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2015\/11\/Vodacom-call-center-banned.jpg\" alt=\"Vodacom call centre banned\" width=\"630\" height=\"423\" \/><\/a><\/p>\n<p>Vodacom made multiple investment in South African companies over the years, but <strong><a href=\"http:\/\/businesstech.co.za\/news\/general\/27782\/vodacom-investments-in-view\/\">many of these investments failed<\/a><\/strong>. Some examples include Gogga, Zoopy, Vodacom Gated Services, The Grid, and Gateway.<\/p>\n<p>Some of the companies which Vodacom invested in <strong><a href=\"http:\/\/mybroadband.co.za\/news\/business\/64096-vodacom-killed-my-business.html\">accused the operator of not providing the support promised<\/a><\/strong>, and reneging on its side of the partnership.<\/p>\n<hr \/>\n<h3 class=\"my-4\">Vodacom\u2019s plan to combat Mxit through its IM platform Meep was a massive failure<\/h3>\n<p><a  data-lightbox=\"post-image\" href=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2014\/03\/Vodacom-cheap-phone-2.png\" rel=\"attachment wp-att-98090\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-98090\" src=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2014\/03\/Vodacom-cheap-phone-2.png\" alt=\"Vodacom smartphone\" width=\"630\" height=\"420\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2014\/03\/Vodacom-cheap-phone-2.png 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2014\/03\/Vodacom-cheap-phone-2-250x166.png 250w\" sizes=\"(max-width: 630px) 100vw, 630px\" \/><\/a><\/p>\n<p><a href=\"http:\/\/mybroadband.co.za\/news\/cellular\/2111-vodacom-launches-thegrid.html\"><strong>In 2007, Vodacom launched Meep<\/strong><\/a> &#8211; a real-time, presence-based Instant Messaging service. This was supposed to compete against the dominant player at the time, Mxit.<\/p>\n<p>Vodacom said that Meep offered &#8220;a transparency in terms of pricing where Meepots are the official currency of the Meep world \u2013 sold in bundles\u201d.<\/p>\n<p>Meep never gained traction, and was shut down without much fanfare.<\/p>\n<hr \/>\n<h3 class=\"my-4\">Vodacom\u2019s social platforms The Grid and Heroes of Echo never lived up to the hype<\/h3>\n<p><a  data-lightbox=\"post-image\" href=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2016\/02\/Vodacom-the-grid.jpg\" rel=\"attachment wp-att-154294\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-154294\" src=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2016\/02\/Vodacom-the-grid.jpg\" alt=\"Vodacom TheGrid\" width=\"630\" height=\"420\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2016\/02\/Vodacom-the-grid.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2016\/02\/Vodacom-the-grid-250x166.jpg 250w\" sizes=\"(max-width: 630px) 100vw, 630px\" \/><\/a><\/p>\n<p><a href=\"http:\/\/mybroadband.co.za\/news\/cellular\/2111-vodacom-launches-thegrid.html\"><strong>In 2007, Vodacom launched The GRID<\/strong><\/a> \u2013 a location-based mobile social network that allowed users to chat to friends, see where they were on a map, and share photos or videos with them.<\/p>\n<p>It never lived up to the hype, and Vodacom closed\u00a0The Grid on 1 December 2012.<\/p>\n<p><a href=\"http:\/\/mygaming.co.za\/news\/news\/13482-vodacom-s-legends-of-echo-a-failure.html\"><strong>Vodacom\u2019s Legends of Echo<\/strong><\/a> \u2013 a location-based multiplayer social game for mobile phones \u2013 did even worse.<\/p>\n<p>It never gained any support, and was quietly discontinued by Vodacom not long after its launch.<\/p>\n<hr \/>\n<h3 class=\"my-4\">Vodacom experienced a country-wide network outage, but decided to say little through its official channels<\/h3>\n<p><a  data-lightbox=\"post-image\" href=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/05\/Angry-man-with-cellphone.jpg\" rel=\"attachment wp-att-79185\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-79185\" src=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/05\/Angry-man-with-cellphone.jpg\" alt=\"Angry man with cellphone\" width=\"630\" height=\"420\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/05\/Angry-man-with-cellphone.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/05\/Angry-man-with-cellphone-250x166.jpg 250w\" sizes=\"(max-width: 630px) 100vw, 630px\" \/><\/a><\/p>\n<p><a href=\"http:\/\/mybroadband.co.za\/news\/cellular\/28270-vodacom-downtime-can-you-get-money-back.html\"><strong>On 30 June 2011, Vodacom experienced its worst-ever network downtime<\/strong><\/a>, caused by multiple transmission failures and subsequent network congestion in some areas.<\/p>\n<p>Vodacom\u2019s official communication about\u00a0the downtime was poor, and saw\u00a0<strong><a href=\"http:\/\/mybroadband.co.za\/news\/cellular\/27971-vodacom-ceo-praised-for-crisis-handling.html\">Vodacom CEO Pieter Uys resort to Twitter<\/a><\/strong> to inform people what was happening, and what they were doing to resolve the problems.<\/p>\n<hr \/>\n<h3 class=\"my-4\">Vodacom double-billed its customers in the beginning of 2016, right when people started to run out of money<\/h3>\n<p><a  data-lightbox=\"post-image\" href=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/11\/Vodacom-Shares.jpg\" rel=\"attachment wp-att-91365\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-91365\" src=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/11\/Vodacom-Shares.jpg\" alt=\"Vodacom Shares\" width=\"630\" height=\"420\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/11\/Vodacom-Shares.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/11\/Vodacom-Shares-250x166.jpg 250w\" sizes=\"(max-width: 630px) 100vw, 630px\" \/><\/a><\/p>\n<p>On 1 January 2016, many Vodacom subscribers took to social media to complain that they had been <strong><a href=\"http:\/\/mybroadband.co.za\/news\/cellular\/150601-vodacom-double-debits-accounts.html\">double-billed by Vodacom.<\/a><\/strong><\/p>\n<p><a href=\"http:\/\/mybroadband.co.za\/news\/cellular\/151121-vodacom-to-repay-bank-charges-and-lost-interest-from-double-debit-glitch.html\"><strong>Vodacom refunded these subscribers<\/strong><\/a> a few days later, and offered them free data to make up for the mess.<\/p>\n<hr \/>\n<h3 class=\"my-4\">More on Vodacom<\/h3>\n<p><strong><a href=\"http:\/\/mybroadband.co.za\/news\/cellular\/154034-how-much-vodacom-subscribers-really-pay-for-a-call.html\">How much Vodacom subscribers really pay for a call<\/a><\/strong><\/p>\n<p><strong><a href=\"http:\/\/mybroadband.co.za\/news\/cellular\/153896-vodacoms-broadband-network-covers-nearly-all-south-africans.html\">Vodacom\u2019s broadband network covers nearly all South Africans<\/a><\/strong><\/p>\n<p><strong><a href=\"http:\/\/mybroadband.co.za\/news\/business\/153892-massive-increase-in-vodacom-data-traffic.html\">Massive increase in Vodacom data traffic<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Vodacom is South Africa\u2019s largest telecommunications company, but its journey to the top was not without some very bad blunders.<\/p>\n","protected":false},"author":23,"featured_media":73750,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,14],"tags":[35,683,931,35306,41,3572],"class_list":["post-154290","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-cellular","tag-headline","tag-iburst","tag-meep","tag-thegrid","tag-vodacom","tag-wbs"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/154290"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=154290"}],"version-history":[{"count":2,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/154290\/revisions"}],"predecessor-version":[{"id":154756,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/154290\/revisions\/154756"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/73750"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=154290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=154290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=154290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}