Vodacom Could Re-brand To Vodafone Colours

According to Times Live, South Africa-based telecoms group Vodacom is poised to unveil its new corporate colours at the Orlando Stadium in Soweto on Friday night.

Although Vodacom has yet to confirm the details, mounting press speculation indicates that the firm will be re-branded in line with the red and white colour scheme used by parent company Vodafone, which secured a controlling stake in Vodacom in May 2009.

Vodacom, which also has operations in Mozambique, Tanzania, Lesotho and the Democratic Republic of the Congo (DRC), has reportedly budgeted a sum of ZAR200 million (USD29 million) for the re-branding exercise. However, Vodacom is expected to retain its name after the transition, despite Vodafone's global strategy to re-brand all operations in which it has a controlling stake. 

Vodafone, which holds a 65% stake in Vodacom, intends to increase its connection to Vodacom, by rotating executives among its foreign units and allowing Vodacom to leverage its global supply chain as well as introducing in new services pioneered by Vodafone elsewhere.

Domestic Market Boosts Vodacom Revenues Up 3.9%

South Africa-based Vodacom Group has reported consolidated revenues of ZAR16.03 billion (USD2.24 billion) for the three months ended 31 December 2010. 


This figure represents an increase of 3.9% year-on-year. Vodacom’s domestic unit, Vodacom South Africa accounted for ZAR14.07 billion in sales, or 87.7% of the group’s total quarterly revenues. 


The telecoms firm has yet to release figures for EBITDA or net profit. Of Vodacom South Africa’s revenues, mobile voice traffic was responsible for the lion’s share of the takings, generating ZAR7.43 billion, whilst mobile interconnection fees contributed ZAR1.78 billion, mobile data ZAR1.75 billion and mobile messaging ZAR644 million. Data exhibited the largest increase year-on-year, growing 50.5%. 

In operational terms, Vodacom South Africa remains the firm’s largest unit by subscribers, although its customer base dropped 6.6% year-on-year, to 25.3 million. However, any losses have been offset by the company’s enlarged post-paid subscriber base which grew 14.8% year-on-year. 


Elsewhere, Vodacom units in Tanzania, Democratic Republic of Congo, Mozambique and Lesotho all increased their subscriber bases in the twelve months ended 31 December. Lesotho contributed the largest proportion of growth, increasing its customer base 28.6% to 823,000. Tanzania grew its subscriber base 26%, to end the year with 8.7 million subscribers, whilst Mozambique weighed in with 2.9 million customers (up 27.7%) and Democratic Republic of Congo 3.8 million subscribers (up 9.2%). 


Vodacom Group ended the calendar year with a consolidated wireless subscriber base of 41.6 million. 


Vodacom CEO Pieter Uys commented: ‘Our strategy of focusing on operational delivery and offering increased value to customers has paid off with group customers increasing by more than two million to 41.6 million. 


In South Africa, the data business was a star performer, with growth in mobile connect cards and smartphones driving a 33.8% increase in overall data revenue. The international operations also continued to respond well to management actions with service revenue growth of 13.2%’.

Infraco To Launch Broadband In November

Broadband Infraco, the new State-Owned Enterprise (SOE) that will sell high capacity long distance transmission services to network service providers in South Africa, has confirmed that it will unveil its new ZAR1 billion (USD144.1 million) network during the third week of November.

The company has been plagued by licensing issues since its inception three years ago. The Broadband Infraco Act of 2007 stipulates that telecoms regulator the Independent Communications Authority of South Africa (ICASA) is obliged to issue Broadband Infraco both an Individual-Electronic Communications Network Services (I-ECNS) licence and an Electronic Communication Services (ECS) licence.

However, commercial ISPs objected to it receiving an ECS licence, as they claimed it would give the company an unfair advantage. In January 2010 ICASA bowed to communications minister Siphiwe Nyanda's policy directive, and only awarded the I-ECNS concession.

Broadband Infraco has since confirmed that it will operate exclusively within a wholesale business model, targeting both fixed and mobile operators, as well as internet service providers. Licensed operators may buy multiple capacity increments of 155Mbps - up to 10Gbps. Broadband Infraco’s lowest capacity service reportedly offers transmission speeds akin to 20 HD movies being screened simultaneously.

CEO Dave Smith commented: ‘In anticipation of receiving the I-ECNS licence, Broadband Infraco installed some 11,765km of fibre optic cable connecting Johannesburg, Pretoria, Cape Town and Durban and other large metropolitan centres including Bloemfontein, Kimberley, Port Elizabeth, East London, Nelspruit and Polokwane. The award of the Electronic Communications Services (ECS) licence from ICASA is the remaining piece of the puzzle for Broadband Infraco to deliver entirely on all aspects of its statutory mandate in accordance with applicable legislation’. According to Broadband Infraco, its network also extends connectivity to the borders of South Africa’s neighbouring countries, namely: Namibia, Botswana, Zimbabwe, Mozambique, Lesotho and Swaziland. The fibre-optic cables are scalable up to hundreds of gigabits of data per second, depending on future growth.

Mozambique Cellcos Plan to Use Post Office For SIM Registration

Mozambique's two mobile phone operators, mCel and Vodacom Mozambique, have reportedly entered into negotiations with the Mozambique Post Office to use its facilities to assist with the ongoing statutory registration of pre-paid SIM cards.

In an interview with Maputo daily newspaper Noticias, Luis Rigo, chairperson of the Post Office board confirmed that his company has been approached by both operators for the use of its services; Post Offices exist in most of the country's 128 districts.

However, although the Post Office has a far larger network than either mCel or Vodacom, it is not present in every district, and not all of its branches are equipped to carry out the government-endorsed registration process. Rigo confirmed that the Post Office was currently investigating how many of its branches possess the minimum requirements to carry out the registration, namely: electricity, a photocopier and paper.

Last week independent newspaper Mediafax reported a thriving black market trade in outlying internet cafes charging anxious mobile phone subscribers USD1 to register their details online; the majority of the population currently live on less than USD1 per day.

Users of pre-paid mobile phones in Mozambique have until 15 November to register their SIM cards, with those users who fail to meet the deadline having their SIM cards ‘blocked’. The push for SIM card registration comes in the wake of widespread riots in Maputo and Matola in September over a 30% rise in bread prices; the riots were reportedly co-ordinated by a widespread text message campaign.

Mozambique reported a total of 5.56 million subscribers at end-June 2010. Neither mCel or Vodacom have revealed how many subscribers they have managed to register thus far.

Operators To Foot Bill of SIM Registration in Mozambique

The compulsory registration of SIM cards in Mozambique must be funded by Mozambique's two mobile operators, mCel and Vodacom Mozambique, regulatory body the Instituto Nacional das Comunicacoes (INCM) has declared.

In a local media briefing, Francisco Chate, director of posts and telecommunications at the INCM insisted that its recently announced SIM card registration scheme must be free of charge to subscribers, with Chate warning the two cellcos that they must not pass on any associated costs to their respective subscribers.

Doubts have been raised over the logistics of Mozambique’s SIM card registration process, as both operators have few retail outlets and depend on itinerant vendors to sell SIM cards around the country.

The INCM has already stipulated that vendors are prohibited from carrying out the registration process, which will reportedly require valid identification, signatures and fingerprinting.

Neither mCel nor Vodacom have yet to advertise the imminent SIM registration online or in print. When questioned by reporters regarding the feasibility of registering 5.6 million SIM cards by 15 November, Chate admitted: ‘It is a very tight schedule.’

Mozambique SIM Registration Deadline Set For 15 November

Users of pre-paid mobile phones in Mozambique have until 15 November to register their SIM cards, state-controlled Radio Mozambique has reported, citing Transport and Communications minister Paulo Zucula. The minister has indicated that those users who fail to meet the deadline will have their SIM cards ‘blocked’.

Additional regulations are thought to include the prohibition of selling SIM cards to persons under the age of 14, and a limit of three SIM cards registered to any one subscriber.

The push for SIM card registration comes in the wake of widespread riots in Maputo and Matola earlier this month over a 30% rise in bread prices; the riots were reportedly co-ordinated by a widespread text message campaign. In the aftermath of the riots the INCM imposed a controversial three-day text message suspension on all mobile operators.

Mozambique Urges Firms to Share Infrastructure

In an interview with independent daily O Pais, Mozambique's Minister of Transport and Communications, Paulo Zucula, has urged the country's two mobile phone operators, mCel and Vodacom, to share their mobile phone masts in order to reduce costs, protect the landscape and ultimately enable increased coverage in remote areas.

Zucula commented: ‘The fact that each operator has its own infrastructure demands huge investment, which takes a long time to carry out. Furthermore, if we don't adopt this measure, we shall fill the country with redundant, unnecessary masts. It's a question of rationalisation’.

He indicated that both Vodacom and M-Cell are in favour of the idea, whilst conceding that financial disputes may yet cause a stumbling block: ‘I think that they're in favour. Sharing will allow better use to be made of their infrastructures, and so I doubt that they'll reject it. Since it's a business, problems could arise, but I think they agree with the principle’. He added that sharing infrastructures would make it easier for new operators to enter the market.

Three out of 22 interested parties were shortlisted to become Mozambique’s third mobile phone operator in July 2010. The three in question are TMN (the cellular unit of Portugal Telecom), UNI-Telecom (a joint venture between Angolan cellco Unitel and Mozambique’s Energy Capital) and a Vietnam-backed bidder named Movitel. The winner is expected to be announced in November. Mozambique is currently home to mCel with an estimated four million customers in June 2010 and Vodacom with 1.57 million at the same date. Wireless penetration stands at 25%, leaving plenty of room for growth.

Mozambique Plans to Introduce SIM Registration

Mozambican telecoms regulator Instituto Nacional das Comunicacoes (INCM) has proposed compulsory SIM card registration for the country’s mobile phone subscribers.

According to a report in Mediafax, the INCM sent a draft bill to the Secretariat of the Council of Ministers requesting that it becomes obligatory for mobile phone operators to register anyone who purchases a pre-paid SIM card.

The calls for SIM card registration come in the wake of widespread riots in Maputo and Matola this month, which were reportedly co-ordinated by text message.

In the aftermath of the riots the INCM imposed a controversial three-day text message suspension on the country’s mobile operators.

INCM Managing Director Americo Muchanga commented: ‘There are several advantages. For example, without registration you can't have access to mobile phone banking and other financial services. Registration is advantageous for anybody who is not a criminal’.

EASSy Formally Launched

Seven months after commencing cable installation, West Indian Ocean Cable Company (WIOCC), the specially created African investment company jointly owned by 14 African telcos and additionally funded by a number of global development finance institutions, has formally announced the launch of its 1.4Tbps, 10,002km fibre-optic submarine cable system.

East African Submarine System (EASSy) runs along the east coast of Africa, from South Africa to Sudan, and boasts onward connection to global markets. Completed on time and on budget, EASSy promises to enable affordable, reliable delivery of fast internet access for African users and enhanced voice and data services for the international marketplace. EASSy will enhance global connectivity to and from 21 countries in eastern and southern Africa, landing at nine countries: South Africa, Mozambique, Madagascar, the Comores, Tanzania, Kenya, Somalia, Djibouti and Sudan.

WIOCC CEO Chris Wood commented: ‘Not only does our cable system provide the lowest latency internet connections and best ever voice and data service reliability to this region of Africa, but our unique approach to contract capacity and duration also provides businesses with the crucial flexibility they desire’.

Investor Celebrate's EASSy Launch

Seven months after commencing cable installation, West Indian Ocean Cable Company (WIOCC), the specially created African investment company jointly owned by 14 African telcos and additionally funded by a number of global development finance institutions, has formally announced the launch of its 1.4Tbps, 10,002km fibre-optic submarine cable system.

East African Submarine System (EASSy) runs along the east coast of Africa, from South Africa to Sudan, and boasts onward connection to global markets. Completed on time and on budget, EASSy promises to enable affordable, reliable delivery of fast internet access for African users and enhanced voice and data services for the international marketplace.

EASSy will enhance global connectivity to and from 21 countries in eastern and southern Africa, landing at nine countries: South Africa, Mozambique, Madagascar, the Comoros, Tanzania, Kenya, Somalia, Djibouti and Sudan. WIOCC CEO Chris Wood commented: ‘Not only does our cable system provide the lowest latency internet connections and best ever voice and data service reliability to this region of Africa, but our unique approach to contract capacity and duration also provides businesses with the crucial flexibility they desire’.

22 Eye Mozambique's 3rd Operator Licence

22 Mozambican and foreign companies have acquired contract documents for the tender of the country’s third mobile telephone licence, the director-general of Mozambique's National Communications Institute (INCM) has announced.

A year ago, the government approved the introduction of a third wireless operator to ‘meet demand’. The government now has 60 days to evaluate the proposals and select a winning bid. The successful applicant will be permitted to launch operations within 30 days of licensing, with an obligation to enter the market within a year.

Under the terms of the tender, the Ministry of Transport and Telecommunications (MTT) has set a USD25 million minimum bid for the 15-year licence. The regulations also require bidders to operate one or more networks with at least two million customers and to have a local partner. The government has said it will place more value on a bidder’s technical proposal, than its financial one.

Mozambique is home to two wireless network operators: Mcel with an estimated 3.8 million customers at the end of 2009 and Vodacom with 1.63 million at the same date. Wireless penetration stood at 23.8% in March 2010, leaving plenty of room for growth.

Vodacom Profits Fall By 31%

The Vodacom Group, the African telecoms group 65% owned by Vodafone, has said its annual net profit fell 31% despite higher revenues, largely due to an impairment charge taken in the first half of the financial year. In the twelve months ended 31 March 2010 revenue was ZAR58.54 billion (USD72.3 billion) an increase of 5.6% on the year before. Net profit attributable to equity shareholders was ZAR4.2 billion down from ZAR6.09 billion while operating profit decreased 6.4% to ZAR11.24 billion mainly due to impairment losses of ZAR3.37 billion and a 10% increase in depreciation and amortisation. The group EBITDA margin rose from 32.8% to 33.8% and EBITDA increased by 8.7% to ZAR19.78 billion.

Vodacom reported that customer numbers in its domestic market declined by 4.9% to 26.3 million as a result of a 1.9 million reduction in pre-paid customers following the implementation of legislation in South Africa. Blended ARPU was ZAR132 per month, down ZAR1 on the previous year, while minutes of use was steady at 80 per month. Internationally, Vodacom ended fiscal 2009/10 with 13.63 million customers, an increase of 13.7% year-on-year, with the star performer being Mozambique, which saw its customer base jump 42.5% to 2.33 million.

EASSy Lands In Tanzania

According to a report in the Tanzanian Daily News, the ship laying a 5000km long submarine fibre-optic component of the East Africa Submarine Cable System (EASSy) landed in Tanzania, at Msasani Peninsula, on 6 April. Once completed the EASSy cable will be capable of delivering data transmission of 1.4Tbps.

West Indian Ocean Cable Company CEO, Chriss Wood, who was present at the landing site, said: ‘Interconnection with other undersea international cable systems will enable traffic on EASSy to seamlessly connect to Europe, North and South America, the Middle East and Asia, thereby enhancing the east coast of Africa’s connectivity to the global telecommunications network.’ The new submarine cable has landing points in nine African countries and will provide backhaul for a further dozen landlocked countries, enabling improved connectivity for the East African region. EASSy comprises of a 10,000km submarine cable system along the east coast of Africa, with landing stations in Sudan, Djibouti, Somalia, Kenya, Tanzania, Comoros, Madagascar, Mozambique and South Africa.

Vodacom Q3 Revenues Up 6%

South African Vodacom Group has reported group revenues of ZAR15.43 billion (USD2.03 billion) for the three months ended 31 December 2009, up 6% from ZAR14.56 billion in the same period a year earlier. The company attributed revenue growth to the January 2009 acquisition of Gateway Communications and a 33.1% year-on-year growth in data revenues. Group data revenue was ZAR1.19 billion for the final three months of 2009, with the company’s domestic operation accounting for ZAR1.16 billion of the total.

Pieter Uys, CEO of Vodacom, said: ‘This has been a positive quarter for Vodacom, featuring solid overall revenue growth and continued progress in building our data business. Despite a challenging economic environment, our South African business posted a 7.5% increase in revenue. The actions we have taken in our international businesses have shown positive results in the form of improved market positioning. Cost management programmes are also gaining momentum and should provide the basis for improved margin management in the year ahead. Careful allocation of capital to investment projects has resulted in continued strong growth in cash flows.’

The group ended 2009 with a consolidated mobile customer base of 40.5 million, a 9.5% year-on-year growth. Vodacom South Africa accounted for 67% of the total with 27.1 million subscribers, up from 26.45 million a year earlier. Three of the company’s international operations also reported year-on-year customer growth. The firm’s Tanzania, Mozambique and Lesotho-based subsidiaries saw their customer bases grow by 28.4%, 61.1% and 30.9% respectively. Growth in other operations helped offset a 12.9% decline in Vodacom’s Democratic Republic of Congo (DRC) subscriber base, which stood at 3.52 million following a change in disconnection policy from 215 to 90 inactive days.

EASSy In Mozambique

Installation of the first cable landing station of the East African Submarine System (EASSy) will commence this week in Mozambique, according to an announcement by the consortium's largest investor The West Indian Ocean Cable Company (WIOCC).

The twelve-telco strong consortium will roll out landing stations in nine African countries and provide high speed terrestrial connectivity to around a dozen landlocked nations. Cable laying is scheduled for completion in April 2010, with a ready-for-service date set for end-June.

Tanzania Starts Laying US$600 million Undersea Cable

Tanzania's efforts to set up a communication system to connect international broadband networks started with the laying of a US$600 million undersea cable in Dar es Salaam on Wednesday.

An official from the Seacom Company, the private firm implementing the project, said that the undersea fibre optic cable has been laid down in the Indian Ocean water of commercial capital Dar es Salaam. The trials for the new communication system have been set for March 2009.

Speaking to reporters in Dar es Salaam, Seacom Tanzania managing director Anna Kahama said the project was expected to be complete by June this year. The new technology, which is alternative to the satellite system, is set to lower telecommunications costs by 95 percent, Kahama said.

"Currently, satellite costs about US$300 per megabyte per second while the use of fibre optic cables will cost US$100 per megabite per second," she said.

This is the first fibre optic cable of its kind in East Africa. The cable will be connected to the fibre optic centres in Mozambique, South Africa, Kenya, Egypt, India and Djibouti.

Four Tanzanians are currently undergoing training in India on how the system works. On returning they will assume the positions of station manager, engineer and cable station technical technicians at a centre in Dar es Salaam.

Seacom will be the system's service provider on the East Coast of Africa, linking Southern and East Africa, Europe and Southern Asia.

The company's construction manager, Chriss Albert, said the technology was now common in most parts of the world - except Africa.

"This is high-performance optical transmission equipment," he said. "It connects customers to inland terrestrial networks and other cable landing stations all over the world."

Vodacom Reports Growth in Subscribers, Revenues

Mobile phone operator Ton Tuesday reported that increased subscriber numbers, largely from non-South African operations, boosted the group’s revenues to R40,5-billion in the nine months ended December 2008.

This was a 13,7% increase in revenue when compared with the prior year.

An overall 14,3% lift in customers took Vodacom’s subscriber numbers to 37,8-million. Some 30%, or 11,3-million, of these subscribers where outside of South Africa, as the company continued its aggressive drive to grow subscriber numbers further into Africa.

"Expanding our African footprint beyond South Africa is one of the pillars of Vodacom’s growth strategy. I’m pleased to say that this quarter we reached an important milestone, with 30% of our total customer base now coming from our operations in Tanzania, the Democratic Republic of Congo, Lesotho and Mozambique,” said Vodacom group CEO Pieter Uys.

Mobile customers from Vodacom’s non-South African operations increased by 8,4% to 11,3-million at December 2008, from 10,4-million at September 2008.