Vodacom, the biggest mobile operator in South Africa, reported little change in first-quarter revenue on Thursday, as international growth was offset by weakness in its home market.
Vodacom, which is majority owned by Britain’s Vodafone, said group revenue totalled R14,4-billion to end-June, compared with R14,3-billion a year earlier.
Vodacom added about one million customers outside South Africa during the quarter, mainly from Tanzania. However, it lost three million customers in South Africa, where it was hit by a decline in prepaid customers.
Vodacom faces stiff competition as global firms increasingly target Africa’s fast-growing mobile market. Rival MTN Group, Africa’s biggest cellphone company, aims to add 20-million new subscribers this year.
India’s Bharti Airtel has said it plans to spend a total of $1,2-billion over the next three years on network upgrades and other investments in Uganda, Zambia, Kenya, Nigeria and other African countries.
Vodacom is also being squeezed by a regulatory rate cut in its home market.
Vodacom said last month it has lost about R600-million since South Africa’s communications regulator in March forced wireless operators to reduce their interconnection fees, the rate they charge to use each other’s networks. — Reuters