Mobile network operator Vodacom estimates that it has over half the local mobile market-share, according to its latest trading update.
While Vodacom is boasting a 52% market holding, it is a marginal decrease from the same period the year before. The group has increased its total subscriber base by 14.3%, to 37.8 million across its entire operation.
The mobile giant reported a 4.8% increase locally, since it reported its interim results in September, bringing its South African subscriber base to 26.5 million. Vodacom estimated its market share in 2007 to be at 58% and in 2006 sported a similar figure.
However, research compiled by Econex, detailing the competitiveness of the SA mobile market, showed that MTN and Vodacom both held an equal 35% of the market.
Cashing in
Aside from the growth in contract and pre-paid SIM cards, the company also reported strong revenue growth of 14.3%, to R40.5 billion, over the year before.
Telkom's sale of Vodacom is expected to be completed sometime during the first half of this year. Analysts believe the mobile operator will only increase its footprint and service offerings once the deal has been completed.
Vodacom will also list on the JSE near the middle of this year, which will give stakeholders a clearer idea of the company and its progress, independent of the incumbent. Industry watchers have noted that the dual ownership of Vodacom by Telkom and Vodafone has stymied the company's opportunities.
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