Johannesburg, 26 Jan 2005
As at December 30, 2004, Vodacom Group recorded 14.4 million customers on its networks operated in South Africa and other African countries, a 7.1% increase in the three months since September 30, 2004. The Group`s international operations comprised 2.4 million customers, or 16.7% of the total customer base.
Vodacom South Africa increased its customer base by a healthy 6.1% since September 30, 2004 to 12.0 million customers in an ever more competitive market. Vodacom South Africa`s customer base comprise of 1.8 million contract customers and 10.2 million prepaid customers, increases of 6.9% and 5.9% since September 30, 2004 respectively. South African ARPU remained stable at R165 per month for the nine months to December 31, 2004. The ARPU was negatively impacted by the higher proportion of prepaid customers in the total base and higher churn, however, seasonal fluctuations in customer spending patterns over December and the lower proportion of inactive customers compensated for this decrease.
In addition to the surpassing of 12.0 million customers, the period saw two strategically important events, namely the signing of a strategic alliance with its 35% shareholder Vodafone and the launch of 3G. The strategic alliance with the world`s largest cellular operator will provide access to Vodafone`s global research and development, buying power, products, services and content, under a co branding arrangement, as well as benchmarking. In order to cater for the launch of 3G, approximately R400 million has been spent to roll out the initial 470 3G base stations in the major metropolitan areas.-
The implementation of the new disconnection rules for prepaid customers was completed by September 30, 2004, which has resulted in prepaid churn returning to expected levels.
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