| Thu 27 Jan 2005, 9:07 | | Telkom Sa Limited - Vodacom Group surpasses 14 mil |
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Telkom Sa Limited - Vodacom Group surpasses 14 million customer mark
Telkom SA Limited
(Registration Number 1991/005476/06)
ISIN ZAE000044897
JSE and NYSE Share Code TKG
(`Telkom`)
Vodacom Group surpasses 14 million customer mark
Vodacom Group (Proprietary) Limited (`Vodacom Group` or `Vodacom`) (unlisted),
South Africa`s largest mobile communications group, in which Telkom has a 50.0%
holding, has announced customer numbers for the quarter ended December 2004.
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.
Customers, ARPU, 3-month inactive statistics and churn as at and for the year-to
date December 31, 2004 compared with September 30, 2004 for Vodacom South Africa
are as follows:
Vodacom South Africa September 30, 2004 December 31, 2004 % change
Customers (thousands) 11,346 12,034 6.1
Contract 1,651 1,765 6.9
Prepaid 9,671 10,245 5.9
Community services 24 24 -
telephones
ARPU (ZAR) 165 165 -
Contract 637 637 -
Prepaid 79 79 -
Community services 2,381 2,378 0.1
telephones
Johannesburg
27 January 2005
Vodacom South Africa September 30, 2004 December 31, 2004 % change
(cont)
3-month inactive customers 19.7 18.5 1.2 pts
as % of total customers
Contract 5.8 5.6 0.2 pts
Prepaid 22.1 20.8 1.3 pts
Churn (%) 20.0 27.1 (7.1 pts)
Contract 8.6 9.5 (0.9 pts)
Prepaid 21.9 30.1 (8.2 pts)
Vodacom`s other African operations increased its total customer base by 12.8%
since September 30, 2004 to 2.4 million customers. Strong customer growth was
enjoyed in all Vodacom`s other African operations most notably Tanzania who
passed the psychological 1 million mark. The customer growth was however offset
by weaker ARPU`s as these declined in Rand terms in all of Vodacom`s other
African operations. The decline in ARPU`s is not only due to Rand strength and
local currency weaknesses but also as penetration in these markets increases. We
continued to experience highly competitive operating conditions in all of these
markets. Vodacom`s other African operations` customers, year-to-date ARPU and
churn as of December 31, 2004 compared to September 30, 2004 are as follows:
Other African operations September 30, 2004 December 31, 2004 % change
Vodacom Tanzania
Customers (thousands) 952 1,074 12.8
Contract 5 6 20.0
Prepaid 944 1,065 12.8
Public phones 3 3 -
ARPU (ZAR) 91 87 (4.4)
Churn (%) 26.1 31.8 (5.7 pts)
Vodacom Congo
Customers (thousands) 903 986 9.1
Contract 10 10 -
Prepaid 885 966 9.2
Public phones 8 10 25.0
ARPU (ZAR) 111 104 (6.3)
Churn (%) 18.4 20.7 2.3 pts
Other African operations September 30, 2004 December 31, 2004 % change
(cont)
Vodacom Lesotho
Customers (thousands) 122 136 11.5
Contract 4 4 -
Prepaid 117 131 12.0
Public phones 1 1 -
ARPU (ZAR) 91 89 2.2
Churn (%) 14.0 16.3 (2.3 pts)
Vodacom Mozambique
Customers (thousands) 164 218 32.9
Contract 3 3 -
Prepaid 161 215 33.5
ARPU (ZAR) 63 59 (6.3)
Churn (%) 2.7 8.8 (6.1 pts)
Total other African 2,141 2,414 12.8
customers (thousands)
Johannesburg
27 January 2005
