South Africa’s Cell Phone Industry

Vodacom; the leading network

In a number of African countries, such as South Africa and Tanzania, the cellular network provider, Vodacom is leading the way. Vodacom is a pan-African cellular communications company providing a world class GSM service to more than 21.5 million customers in South Africa, Tanzania, the Democratic Republic of the Congo and Lesotho, to name just a few. In all the countries where Vodacom currently operates, Vodacom is the current market leader with satisfactory customer growth. Walking down the streets of Tanzania and South Africa, Vodacom’s presence is sensed through out the numerous cities, from their large billboard advertisements to the small flyers, Vodacom is known by all in society. With so much presence, in terms of advertising, it is no wonder that Vodacom has the most customers in comparison to its competitors, in all the countries in which it operates.

In the streets of Pretoria, I asked a number of people which network provider they subscribe to and the majority of them were Vodacom customers. Why, I asked them. They told me it is because of the services and coverage Vodacom provides, which leaves most, if not all, of its customers satisfied. When visiting the numerous malls in Pretoria, South Africa, it is very common to find one, if not more, Vodashops, which are shops dedicated entirely to providing everything Vodacom; from cell phones and accessories, customer service, air time and so forth. It’s a one stop shop for customers who want to get connected to the Vodacom network. At one of the malls, I found a Vodacare, a place that customers go to obtain more customer service. Vodacare is dedicated entirely to answering customers’ questions and fixing problems.

Vodacom, which is owned equally by the Vodafone Group and Telkom South Africa, is the first cell phone network provider in South Africa. For over a decade now, they have created a strong reputation and are leading the way in the cell phone market. This success is accompanied by a number of milestones in Vodacom’s history in South Africa. In 1993,Vodacom was awarded a license to operate a GSM cellular network in South Africa and this was immediately followed by the first television advertisements for the company. In 1994, a record-breaking roll out took place, where two base stations were built every single day. This was during the time when South Africa’s first democratic elections were taking place. The government agreed to a limited test phase before Vodacom was commercialized. As a result, 1250 cell phones were distributed to election officials. On June 1st 1994, Vodacom began their full commercial operations and connected 10,000 customers on their first day, with 50,000 in the first four weeks and 100,000 in the first five months. When Vodacom introduced their prepaid service, Vodago, in 1996, they connected 60,000 customers all in the first month. In 1997, the South African market reaches the one million customer mark, with Vodacom having 606,000 customers. During this time, Vodacom started signing various International Roaming agreements with numerous countries, including some as far as Russia. They also developed other kinds of agreements, one of which included a national environmental policy. The world’s first cellular shopping mall was opened in 1998 under Vodacom, called Vodaworld. Entry into the 21st century was marked by Vodacom providing network to the highest point in Africa, Mount Kilimanjaro. In 2001, thanks to Vodacom, Mount Kilimanjaro, became the first highest point in the world to be covered by GSM. To this day, climbers can use their Vodacom cell phones to make and receive calls while on the mountain. As well, it was in 2001 that Vodacom South Africa reached its 5 million customer mark. It was no surprise for Vodacom to be rated South Africa’s best performing telecommunications company by its customers in 2003, especially because it had just extended its coverage to more than 900,000 km² of South Africa’s roads and over 95% of the population. In 2004, Vodacom South Africa surpassed the 10 million customer mark.

Vodacom has been here the longest and is therefore trusted; it is a network that only knows success and with this, it attracts hundreds of customers on a daily basis. When I first arrived in South Africa and wanted to be connected, I entered three cell phone stores to ask about which service I should subscribe to. Without hesitation, I was always told “Vodacom’s the best, man” - and with that, I subscribed to Vodacom almost immediately and I have been satisfied from the first day. Costing only 5 Rand for a Starter Pack, which is the sim card that allows for a connection, this is equivalent to $1 Canadian. In all of its markets in Africa, Vodacom ensures low costs to attract more and more customers. As Vodacom penetrates other African markets, it always carries its strong and positive reputation. In the next few years, it will be no surprise to find Vodacom in many more African countries, competing with other network providers.

Link

Cell Phone Curriculum

MultiMedia

-Video

  • Narrated Video Overview of Vodacom
  • Interview with Vodacom Customer
  • Interview with Vodacom shopowner (to be arranged)

-Pictures - all pictures were taken on 8th January in Pretoria, South Africa

  • Vodacom1: Vodacom Shop in a Pretoria mall (Vodashop)
  • Vodacom2: Vodacom Shop in a Pretoria mall (Vodashop)
  • Vodacom3: Interior of Vodacom Shop in a Pretoria mall
  • Vodacom4: Cell Phone items sold at a Vodacom Shop in a Pretoria Mall
  • Vodacom5: Vodacom personnel serving customers at a Vodacom Shop in a Pretoria mall
  • Vodacom6: Vodacom Magazine - advertising
  • Vodacom7: Vodacom Magazine - advertising
  • Vodacom8: Vodacom Magazine - advertising
  • Vodacom9: Vodacom Billboard ad in a Pretoria mall
  • Vodacom10: Vodacom Billboard ad in a Pretoria mall