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Vodacom SA Network Spends R11 Billion for Second Year to Meet Up with the Competition

By Oluchukwu Ikemefuna

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Vodacom SA network spends R11 billion: Vodacom Group, South Africa’s biggest mobile operator, posted revenue of R11.1 billion, up 26.4%, for the year 2023. The revenue generated is only 0.5% lower than the record high of R11.17-billion in the previous year.

Vodacom SA network spends R11 billion

The company has been consistent in its network capital expenditure over the past three financial years. It pumped R11.17 billion into its network during the 2022/23 financial year and R11.15 billion the year before.

Vodacom SA network spends R11 billion To Maintain A Reliable Network For Users

Vodacom said the investment aimed to support network resilience, leverage its new spectrum assets, and enhance its IT platforms. The company emphasized the action was to maintain its competitive edge above other networks in South Africa. 

CEO of Vodacom Group, Shameel Joosub, specifically stated: “We should look at things from an infrastructure investment perspective. We spent R11.1 billion to support network resilience, leverage our new spectrum assets and enhance our IT platforms. This is to maintain our competitive edge and remain South Africa’s most reliable network.”

He continued: “Despite the economic backdrop, we remain committed to spending 13% to 14.5% of our overall revenue. This will be spent on capital expenditure that will result in an enhanced customer experience through sustained investments in technology and network infrastructure.” 

Also read: How to Transfer Data on MTN, Telkom, Vodacom and Cell C in South Africa 2024 

Vodacom SA network spends R11 billion And Outspends MTN

The CEO asserted that the company’s investment in technology and infrastructure will improve its network prowess. Consequently, giving it an edge over other networks and making the company resourceful to its users. 

“Our investment has and will continue to enhance network resilience. This is done through the acceleration of 5G coverage, our rural coverage program to help bridge the digital divide, and keeping customers connected despite grid availability challenges and higher electricity costs.”

Vodacom South Africa’s increased capital expenditure intensity, which has increased in recent years,  has led to the operator outperforming other telcos. It outperformed MTN and other networks in South Africa. This was made apparent through an independent network quality benchmark test. The test is curated by Accenture’s Umlaut in July 2023. 

Conclusion 

MTN spent R10.1 billion on its network in its 2023 financial year, which ended in December. This reveals that Vodacom outspent its rival by approximately R1 billion. Also, MTN South Africa has won many other awards for its network in recent years, though. 

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Abdullahi Kafayat
Abdullahi Kafayat

Abdullahi Kafayat is an enthusiastic writer interested in the tech world. She's a graduate of Obafemi Awolowo University and has a BSc in Chemistry. You can reach her at Kafayatabdullahi17@gmail.com.

Articles: 275

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