This excerpt taken from the TKG 6-K filed Feb 11, 2008.
September 30, 2007
December 31, 2007
This excerpt taken from the TKG 6-K filed Dec 8, 2005.
The South African customer base increased by 39.0% to 15.8 million (September 30, 2004: 11.3 million) compared to the six months
ended September 30, 2004. The increase was driven by the exceptional growth in the prepaid market although excellent growth was
also achieved in the contract market. The number of prepaid customers increased by 41.2% to 13.7 million, while the number of
contract customers increased by 26.7% to 2.1 million. The strong growth in customers was a direct result of the remarkable number
of gross connections achieved (4.2 million), coupled with low churn.
Vodacom continuously focuses on retention of existing customers and acquisition of new customers. Contract churn remained low at
9.3%, although slightly higher than the 8.6% contract churn for the six months ended September 30, 2004. Prepaid churn was lower
at 18.7% (September 30, 2004: 21.9%).
Prepaid services have been the driving force behind market penetration in South Africa and contributes 92.5%
(September 30, 2004: 88.7%) to all gross new connections. During the period under review, ARPU decreased by 10.9% to
R147 (September 30, 2004: R165) per month. The continued dilution of ARPU is caused by the higher proportion of lower ARPU
connections, as the lower end of the market is penetrated. Contract customer ARPU has decreased by 7.7% to R588 per month
(September 30, 2004: decreased by 3.9% to R637) when compared to the six months ended September 30, 2004, while prepaid
customer ARPU decreased by 10.1% to R71 (September 30, 2004: decreased by 9.2% to R79) per customer per month.
Total traffic on the network, excluding national and visitor roaming traffic, has increased by 19.3% to 8.0 billion minutes
(September 30, 2004: 6.7 billion) for the six months ended September 30, 2005. The growth was mainly due to the 39.0% year-on-year
growth in the total customer base to 15.8 million as at September 30, 2005. Also evident was continued fixed for mobile call substitution,
with mobile to mobile traffic increasing by 25.8% compared to the six months ended September 30, 2004, while mobile/fixed traffic only
increased by 1.3% over the same period.
The South African business was rewarded with a number of top awards during the recent Markinor Brand Survey, including top
telecommunications brand and favourite advertiser as well as the third most popular overall brand in South Africa.
Although South Africa is experiencing a lot of regulatory challenges, the business is growing fast while also focusing on customer
satisfaction, by introducing new products and services to the customer. A new happy hour tariff, which was well received by the market, was
launched on August 29, 2005 for prepaid customers and October 1, 2005 for contract customers whereby call rates were dropped
to R1.49 per minute, between 5 and 8pm from Monday to Friday. Vodacom also introduced a new service called Airtime Transfer
whereby all contract, top-up and prepaid Vodacom customers can send airtime credit from their mobile phones to another prepaid or
top-up customer free of charge. Vodafone World, Vodafones new roaming service, was launched in September 2005. It enables
customers, who have activated roaming on their accounts, to calculate the cost of each call they make whilst abroad.
Following Vodacoms spectrum application to provide fixed links, ICASA issued a spectrum licence to Vodacom, on September 12, 2005,
for 2 X 56 MHz spectrum in the 38 GHz band for the provisioning of fixed links.
On June 30, 2005 and September 14, 2005 ICASA approved Vodacoms application for two million numbers in the 0765 and
0766 ranges as well as two million numbers in the 0767 and 0768 ranges.
ICASA has promulgated the Number Portability Regulations. In terms of these regulations the number portability implementation date
would be June 30, 2006.
Despite strong competition, Vodacom has retained its leadership in the highly competitive South African mobile communications market
with an estimated 57.0% market share on September 30, 2005. The South African cellular industry has grown by 20.5% in the last six
months and Vodacom has contributed 62.4% of this growth. The market penetration of the cellular industry is now an estimated 58.0%
of the population.