Finweek English Edition - - INVESTMENT -

The Vo­da­com trad­ing up­date was de­cent enough as data con­tin­ues to be the big growth driver – over 40% of its cus­tomers now use data on its net­work, and data rev­enue was up just over 40%, mak­ing up al­most a quar­ter of rev­enue. This is on the back of a 6.7% fall in SMS rev­enue.

The f ut ure i n t his i ndustr y is most def initely data as smart de­vices drive us­age cou­pled with lower data rates also driv­ing us­age (I still re­mem­ber pay­ing ef­fec­tively R2 000/GB of data less than a decade ago and now I can get it for un­der R100/GB). The panic about the in­ter­con­nect rates favour­ing the smaller play­ers is just a storm in a teacup. Sure, the big play­ers will lose some rev­enue, but this gen­er­ates only 7% of to­tal rev­enue and has been in de­cline for some time. Fur­ther, the claims made by some net­work op­er­a­tors that the new rates will mean that they won’t be able to spend as much on main­tain­ing their net­works is to­tal non­sense, they still gen­er­ate mas­sive prof­its and qual­ity net­work in­fra­struc­ture is core to their busi­nesses.

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