Tag: cellular networks

By Jan Vermeulen for MyBroadband

Mr Price released its annual financial results and reported that its telecoms segment exceeded a billion rand for the first time.

The group’s revenue increased 23% to R28.1 billion, of which Mr Price Cellular and Powercell accounted for R1.2 billion, having grown 34.4% for the 52 weeks ended 2 April 2022.

“Mr Price Cellular, launched in 2017, has reported exponential growth since inception and is now available in 374 stores with promising growth opportunities, most notably the rollout of standalone stores,” the company reported.

“Cellular handsets and accessories gained 130 basis points of market share according to Growth for Knowledge (1.3 percentage points) — 190bps including Powercell in Power Fashion,” it stated.

Mr Price said this is a significant gain considering the disruption caused by global supply chain challenges and the civil unrest in KwaZulu-Natal and Gauteng during July 2021.

According to the Retailers’ Liaison Committee, the group reported a 1.4% percentage point gain in market share.

The retailer also saw significant gains online, increasing market share by 70 basis points to 13.3%.

Online sales grew 48.2% and contributed 2.9% of retail sales.

Citing Similar Web stats for April 2021 – March 2022, Mr Price said its online growth was second-highest behind Takealot among omnichannel and pure-play retailers.

“Its nearly six million loyal social media followers grew by double-digits,” Mr Price stated.

“The Mr Price mobile app remains the highest-ranked South African fashion shopping app on the Google Play store, with customer usage up 27.3% according to Similar Web.”

Source: MyBroadband

Research from DataEQ, in partnership with Deloitte Africa, shows that telecoms remains South Africa’s least-liked industry.

The latest South African Telecommunications Sentiment Index revealed that the sector ranked last for the second consecutive year compared to banking, insurance, and food retail.

Retail had a public net sentiment of 4.1%, followed by insurance at 1.4%.

While banking had a negative public net sentiment of -7.5%, it was eclipsed by people’s dislike of telecoms.

The researchers measured public net sentiment for the telecommunications industry at -31.5%.

The report also ranked cellular network operators according to customer sentiment, analysing operational and reputational customer opinion.

Overall, MTN had the highest net sentiment of South Africa’s mobile operators with –6.7% — extending its lead over the rest with a 14.9 percentage point improvement from last year.

Vodacom saw an increase of 2.8 percentage points — enough to go from third to second place.

However, Telkom is breathing down its neck after a 13.6 percentage point surge.

Cell C dropped from second to fourth place thanks to a deterioration in operational sentiment.

“Operational conversation pertains to mentions from consumers in a customer journey with a network provider, from those looking to sign up or cancel, as well as current customers or ex-customers reflecting on their experiences,” the researchers explained.

They found that Cell C’s customer migration to Vodacom and MTN drove complaints.

Rather than compete with MTN and Vodacom in network investment, Cell C opted to switch off its cellular network and entered separate deals with its rivals.

Cell C prepaid customers would use an MTN-managed network, while contract subscribers roam on Vodacom’s network.

The researchers concluded that this resulted in a swell of customer complaints about network downtime.

MTN and Rain also saw increased negativity around their networks, with network quality complaints doubling in their contribution to both operators’ negative operational conversation year-on-year.

Vodacom saw multiple flares in operational complaints over the year.

The researchers stated that these complaints were primarily linked to the competitor’s ShakeOff puzzles.

Vodacom subscribers claimed the puzzles were impossible to complete.

There were also some reports of Vodacom network downtime, the report said.

Vodacom was the only provider whose reputational sentiment declined year on year.

The researchers found that this negative shift was tied mainly to a rise in negativity related to pursuing a telecoms licence in Ethiopia.

Telkom recorded the most significant year-on-year improvement in reputation thanks to decreased negativity and a rise in positive reputational sentiment.

While network quality and customer service remained highly negative areas for network operators in 2021, pricing sentiment increased by 6.4 percentage points from 2020

“In 2021, Cell C, MTN and Vodacom all decreased the price of their 1GB, 30-day data bundle to R85, while Telkom reduced their equivalent offering to R79,” the researchers stated.

“This was likely a driving factor behind the progress seen by the industry in terms of pricing sentiment.”


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