Cell C and Vodacom slash rates for prepaid segment (South Africa)
Mobile operators Cell C and Vodacom have introduced new packages for the prepaid segments, with both operators offering local calls to any network for $0.12.
According to a report by iol, in a move that industry watchers believe will trigger a wave of price cuts, Cell C last week introduced its 99 cents for real tariff – slashing its rates by 34 percent. Vodacom followed suit minutes later with its “Freedom 99” plan.
The report reveals that Cell C’s prepaid plan is the cheaper of the two as customers are billed per second from the first second, while Vodacom charges $0.12 for the first minute, then in 30-second increments thereafter.
However, Vodacom offers free Vodacom-to-Vodacom calls from midnight to 5am if customers recharge with at least $1.43 on the day. Further, while Cell C will continue its plan, Vodacom said its deal would end on July 31.
Vodacom eyes acquisition opportunities in Africa (Africa)
South African cellphone operator Vodacom Group Ltd. said that it is ready to grow its operations further across Africa and is on the hunt for small acquisitions.
Chief Executive Pieter Uys told DJN that they feel more comfortable that they have the recipe to be successful outside South Africa. Uys said the company is looking to make smaller acquisitions in the $100 million range focusing on a few countries on the continent that provide a stable political environment, big city populations and which aren’t overcrowded with other mobile phone operators.
As per the report, the key to expansion, Uys said, will be to establish a local presence in each country. When the company first expanded, Uys said it would put together packages in its home base of South Africa and then carry them out to the other countries it operates in–Tanzania, Mozambique, Lesotho and Congo. He added that Vodacom is considering expanding into Angola, Ethiopia and Uganda.
While telecommunications companies in Africa are benefiting from the expansion of its user base as more people enter the cellphone market, that growth doesn’t come without complications.
Vodacom is battling a court case over its 51 percent shareholding in Congo after a former consultant for the company took it to court over a payment dispute. Congolese courts ruled that Vodacom is liable to pay the company, Nememco,$21 million, and said if the company doesn’t settle the payment, the courts will conduct a public auction of its shares in Vodacom Congo on June 3.
Total Vodacom customers rose to 47.8 million for the year ended March 31, up 11 million from the previous year. In South Africa, customers rose by 6.1 million to 28.9 million.
Vodacom launches low flat rates for Africa roaming (Africa)
Vodacom customers can expect huge roaming savings when travelling to 6 African countries where Vodacom and Vodafone operate. These countries include the Democratic Republic of Congo, Ghana, Kenya, Lesotho, Mozambique and Tanzania. Vodacom is leveraging its presence and that of its parent company Vodafone in these African countries, to provide customers who travel to these countries with reduced rates applicable across the Vodacom and Vodafone networks.
The flat rates have resulted in roaming data rates being reduced by more than 70 per cent, from $ 2.2 per MB to only $ 0.64 per MB. In addition, roaming customers will also enjoy free incoming calls when they travel in these countries.
Commenting on the new Africa roaming service, Romeo Kumalo, Chief Commercial Officer at Vodacom said that they know that people want to remain connected whether they are at home or on holiday in Mozambique, and that nobody likes the headache of worrying about roaming bills. What they’re launching today is a solution to give their customers peace of mind when travelling. They now have one low roaming rate across our African family of networks and an especially aggressive data rate – just in time for the Easter holidays.
These rates are only applicable when roaming on the Vodacom Lesotho, Vodacom Mozambique, Vodacom Tanzania, Vodacom DRC, Vodafone Ghana and Safaricom Kenya networks. The reduced rates will automatically apply to all customers who are roaming on the networks above. Standard roaming rates will apply if roaming on a non Vodacom or Vodafone network in these countries.
Cell C may offer Apple iPhone (South Africa)
Mobile operator Cell C may have reached an agreement with US giant Apple to sell the iPhone in South Africa. According to reports, CEO Alan Knott-Craig said that they are planning to sell the iPhone in the coming months.
This will be a first for the operator as they have not signed a contract with Apple earlier. With Apple leading the global smartphone arena, selling the iPhone may give the operator a boost in subscribers as well as give it better grounds for competition. Rival operators Vodacom and MTN have been selling the iPhone which has been high in demand.
Cell C appoints Alan Knott-Craig as CEO (South Africa)
South Africa based mobile operator Cell C has appointed Alan Knott-Craig as its CEO effective from 1 April 2012. Prior to this, Alan was the CEO for South Africa’s biggest telecom company, Vodacom.
According to company reports, Simon Duffy, non-executive Chairman, Cell C said that Alan is one of the most capable and experienced leaders in the industry and he is confident that his appointment will significantly enhance Cell C’s ability to provide an excellent service to its customers and to compete even more effectively for their business. Further, Cell C has carved out a strong position as an innovative alternative in the industry and, having made considerable progress over the past few years, is strategically well-positioned for growth.
Alan Knott Craig has said that after a break from the telecommunications industry, he is looking forward to being at the helm of Cell C. The mobile telecommunications sector is a highly innovative and disruptive industry, and he is excited about the challenge of making Cell C a more effective competitor to the dominant players. The company has benefited from considerable investment in the past few years, particularly in its network but also in many other areas of the business, and he is confident that he will be able to build on that investment to accelerate the company’s growth.
Bharti Airtel contemplates mobile service launch in South Africa and Cameroon (Africa)
India’s leading telecommunications operator Bharti Airtel may be planning to expand its network in South Africa and Cameroon, as learned through industry sources. Airtel is a dominant player in the mobile industry with operations in 19 countries across Asia and Africa.
Mobile penetration has steadily been increasing in African countries, and with most of the global markets being saturated, emerging markets such as Africa provide mobile operators with new opportunities to increase their subscriber base and enhance their revenue.
Currently Airtel offers services in Nigeria, Burkina Faso, Chad, Congo Brazzaville, Democratic Republic of Congo, Gabon, Madagascar, Niger, Ghana, Kenya, Malawi, Seychelles, Sierra Leone, Tanzania, Uganda and Zambia. By adding South Africa and Cameroon, two of Africa’s fastest growing mobile economies to the list, Airtel aims to strengthen its position in Africa.
Airtel is the leading mobile operator in India and is well known for its innovative and competitive tariff pricing. The operator’s entry into these new markets is expected to take the mobile industry by storm and introduce an unprecedented level of competition.
Airtel presently offers services in 15 cities in India and with the population of one Indian city being similar to that of one African country, South Africa and Cameroon have the potential to be extremely lucrative for Bharti Airtel.
Further, sources claim that rival operators currently offering services in these economies such as MTN, Vodacom and Orange are already working on strategies to maintain their market share and offer stiff competition to Airtel.
Vodacom Lesotho: More than just a leading brand (Africa)
The Vodacom Group is a leading cellular communications company in Africa. Vodacom Lesotho started operating in 1996 with the Government of Lesotho as a shareholder through its stake in Lesotho Telecommunications Corporation.
According to company reports, the global partnership with Vodafone, which started in 2008, put the leading Lesotho network operator at the forefront of developments, and changed the face of the world’s communications landscape.
Refiloe Mohlotsane, brand manager, Vodafone Lesotho has reportedly said that Vodacom isn’t just the leading brand in Lesotho; it’s a lifestyle. She said that young and old people alike identify with the brand and are often spotted sporting a t-shirt or hat with the Vodacom logo. People just love Vodacom. It’s an amazing brand.
Mohlotsane also spoke about the Vodacom Community Builder, claiming it is a success story that seeks to uplift men and women who are making an impact in their lives and those of other people. She added that people feel engaged with the Vodacom Lesotho brand as they invest in the areas of sports, health, technology and community, as part of their corporate social responsibility.
Regarding the brand image of Vodacom Lesotho, Mohlotsane said that Vodacom has, through sponsorships and well-executed advertising, managed to achieve an iconic status in all markets in which it operates. Further, the radio and the print media in Lesotho have particularly been effective in promoting the Vodacom brand. Both have their advantages and disadvantages, but radio has certainly been the best medium locally since it enjoys a wider coverage around the country.
In order to ensure that Vodacom remained a truly consumer-centric brand, Mohlotsane said that they adopted a more targeted approach on a market-by-market basis as well as ensured that they consistently delivered on brand values.
African mMoney revenue to grow to $3 bn in 2015
A new study has revealed that in Africa, mMoney operator revenue as a percentage of total operator revenue will continue to rise to more than 5% in 2015, representing a nearly US$3 billion opportunity.
While Safaricom’s M-Pesa in Kenya has long been the lone success story in the mMoney universe, researcher can now see success being replicated in Uganda and Tanzania with similar mobile money offerings.
MTN Uganda’s MobileMoney service accounts for 3% of all airtime sold on its network, and Vodacom’s M-Pesa service in Tanzania currently has 6 million subscribers with exponential growth of 600% experienced in the past year alone.
From the beginning of March, mMoney offerings remain limited and are concentrated in just 22 of the more than 50 African countries.
Researchers believe that the African mobile money market has the potential to grow to a money-making market, but operators, banks and regulators need to work toward developing an enabling environment for business models that meet service providers’ revenue demands and offers needed by mMoney services to end users.
Vodacom and MTN cleared of price fixing charges (S Africa)
South Africa’s Competition Commission has reportedly cleared Vodacom and MTN of price-fixing, collusion and setting interconnect fees unfairly high.
According to reports, this decision was made despite the Competition Commission finding that MTN and Vodacom had similar rates and admitting that it still had residual concerns about the companies’ high rates between 2004 and 2009.
The Competition Commission’s manager for advocacy and stakeholder relations, Oupa Bodibe stated that the commission completed the investigation at the end of last year, and it decided not to refer the matter to the Competition Tribunal.
Rwanda completes $95m fibre network
Rwanda has reportedly completed construction of a 2,300 kilometre fibre optic network that links the country to undersea cables running along the east African coast.
The project which was commenced in October 2009 at a cost of $95 million, was set up to increase access to broadband services and attracts foreign investment through business process outsourcing.
According to Ignace Gatare, Minister of Information and Communication Technology, the fibre optic project will initially be operated by an independently-managed government entity on an open access model to accommodate infrastructure sharing with the private ICT services providers. The ultimate goal is to progressively transfer the business to a private business.
Rwanda is a land-locked country with Internet penetration of only 12%. However, Minister Gatare states that the ICT sector in the country generated revenues of US$143 million in 2009, rising by 12% in 2010.
The fibre network connects to undersea cable system at Mombasa in Kenya and Dar es Salam in Tanzania.
The Minister added that initiatives to activate the links have been launched and discussions between Rwanda telecommunication operators that include MTN Rwanda, Tigo Rwanda and Rwandatel and regional cable operators are ongoing.
At a Senate meeting, the minister was asked to increase the awareness to the population on the importance of the use of ICT and made several recommendations, including to extend ICT infrastructure, especially in rural areas; to put more effort in the use of ICT in all sectors and services; to sensitize the population on cyber security of individual data; and to emphasize the quality of education in ICT.
Elsewhere, Google has extended its Gmail SMS chat functionality to add three more African countries to its growing coverage list. Mobile users in Uganda, Tanzania and Malawi can now use Google’s email service via SMS texting.
Gmail users can send and receive SMS messages for free using the service. Non-Gmail users can reply via SMS for regular text charging rates. The networks supporting the service are MTN, Uganda Telecom and Orange (Uganda), Vodacom (Tanzania), and Airtel and TNM (Malawi).
