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TKG
TKG
Telkom SA Limited - Vodacom Group surpasses 21 million customer mark
Telkom SA Limited
(Registration Number 1991/005476/06)
ISIN ZAE000044897
JSE and NYSE Share Code TKG
("Telkom")
Vodacom Group surpasses 21 million customer mark
Vodacom Group (Proprietary) Limited ("Vodacom" or "Vodacom Group") (unlisted),
South Africa"s leading mobile communications group, in which Telkom has a 50.0%
holding, today announced a quarterly update for the three months ended December
31, 2005.
As at December 31, 2005, Vodacom Group recorded 21.5 million customers across
its networks operating in South Africa, Tanzania, the Democratic Republic of the
Congo, Mozambique and Lesotho, reflecting a 12.4% increase in the three months
since September 30, 2005. The rapid growth in the customer base is a result of
high gross customer connections of 3.4 million, combined with low churn for the
quarter. The Group"s international operations comprised 3.9 million customers,
or 18.1% of the total customer base.
Vodacom South Africa increased its customer base by a healthy 11.6% since
September 30, 2005 to 17.6 million customers in an increasingly competitive
market. Vodacom South Africa"s customer base comprises 2.3 million contract
customers and 15.3 million prepaid customers, reflecting increases of 7.7% and
12.2% since September 30, 2005, respectively. South African ARPU declined to
R144 per month for the nine months to December 31, 2005, compared to R147 per
month for the six months which ended September 30, 2005.
Vodacom South Africa was the first operator to introduce a commercial 3G
offering into the local market a year ago. The take up by customers continues to
be encouraging, with the number of 3G Vodafone Mobile Connect data cards on the
network as at December 31, 2005 at 26.6 thousand (September 30, 2005: 18.7
thousand). The number of 3G base stations has increased to 1,460 (September 30,
2005: 1,122).
Vodacom South Africa customers, 3-month inactive customer statistics, and year-
to-date ARPU and churn as at December 31, 2005 compared to September 30, 2005
are as follows :
Vodacom South Africa September 30, 2005 December 31, 2005 % change
Customers (thousands) 15,773 17,600 11.6
Contract 2,092 2,254 7.7
Prepaid 13,653 15,316 12.2
Community services 28 30 7.1
telephones
ARPU (ZAR) 147 144 (2.0)
Contract 588 581 (1.2)
Prepaid 71 65 (8.5)
Community services 1,960 1,868 (4.7)
telephones
3-month inactive customers 7.9 7.5 (0.4 pts)
as % of total customers
Contract 1.8 1.8 -
Prepaid 8.9 8.4 (0.5 pts)
Churn (%) 17.4 18.1 0.7 pts
Contract 9.3 9.2 (0.1 pts)
Prepaid 18.7 19.5 0.8 pts
Vodacom"s other African operations increased their total customer base by 16.3%
since September 30, 2005 to 3.9 million customers. Satisfactory customer growth
was achieved in all Vodacom"s other African operations, most notably Mozambique
with a 30.4% increase in its customer base
Vodacom"s other African operations" customers, year-to-date ARPU and churn as at
December 31, 2005 compared to September 30, 2005 are as follows:
Other African Operations September 30, 2005 December 31, 2005 % change
Vodacom Tanzania
Customers (thousands) 1,606 1,859 15.8
Contract 6 7 16.7
Prepaid 1,597 1,849 15.8
Public phones 3 3 -
ARPU (ZAR) 73 71 (2.7)
Churn (%) 28.7 28.4 (0.3 pts)
Other African operations
Other African Operations September 30, 2005 December 31, 2005 % change
(continued)
Operations September 30, 2005 December 31, 2005 % change
Vodacom Lesotho
Customers (thousands) 171 190 11.3
Contract 3 3 -
Prepaid 166 185 11.4
Public phones 2 2 -
ARPU (ZAR) 77 78 1.3
Churn (%) 23.4 23.3 (0.1 pts)
Vodacom Congo
Customers (thousands) 1,236 1,408 13.9
Contract 11 12 9.1
Prepaid 1,209 1,379 14.1
Public phones 16 17 6.3
ARPU (ZAR) 89 90 1.1
Churn (%) 30.5 28.4 (2.1 pts)
Vodacom Mozambique
Customers (thousands) 336 438 30.4
Contract 5 6 20.0
Prepaid 331 432 30.5
ARPU (ZAR) 41 40 (2.4)
Churn (%) 34.5 33.0 (1.5 pts)
Johannesburg
24 January 2006
Sponsor: UBS Warburg
Date: 24/01/2006 05:15:04 PM Produced by the JSE SENS Department
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