SA furious as Vodacom makes R2 billion every month from data

Vodacom’s new trading update has revealed quite a few interesting facts about the network giant. Let’s take a look at some of the things that stood out most.

The latest trading update from Vodacom has revealed that its service revenue in South Africa has grown by 4.9% to just over R14 billion. It seems they are also making quite a bit in terms of every South Africans least favourite word: “data”.

MyBroadband reported on the statement that explained that Vodacom had added huge amounts of new customers last year.

“We continued to see strong customer growth, adding 1.6 million customers in the quarter as we attracted new customers through our bundle and segmentation strategy,” said Vodacom.

While South Africans continue to complain about the ridiculous data costs here at home compared to other developing countries, data revenue grew by 8.7% for Vodacom. That increased brought the total data revenue to R6.0 billion, making up 42.3% of service revenue.

While data traffic growth on Vodacom’s SA network is slightly down from the previous quarter, overall traffic growth kept stable at 43.9%

Vodacom’s steps to reduce free data usage was the main reason for the decline. While we may say we hate bundles, the network says they are becoming ever more popular.

Vodacom was also keen to stress that the overall effective price it charged per megabyte was down just under 25% in the quarter.

The network says the money it makes is focussed on enhancing the quality of coverage across the country.

“During this quarter, our capital expenditure of R2.3 billion was focused on maintaining our best network advantage and enhancing our IT systems and deep learning machine capabilities,” said Vodacom.

Across the Vodacom network, 77.6% is LTE or 4G population coverage. 3G covers 99.4% of the network.

After MyBroadband first reported the R2 billion news, South Africans across social media were furious that the network giant was bringing in such large amounts off of their data.

By Nic Andersen for The South African

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