Cellular network operator Vodacom will invest a massive R2,5 billion capex investment to increase capacity on its network, while announcing that it has reached the one million milestone in active users. This makes Vodacom`s network the largest outside Europe, and one of only 20 GSM networks in the world with more than a million users. The other networks operate in highly developed countries such as Germany, France, the UK, Spain, Sweden, Norway and Taiwan. There are an estimated 57 million GSM users on 153 networks worldwide. "Every day a third of all telephone calls in South Africa are made on a cellphone, placing increasing strain on the cellular networks. The board of Vodacom has approved the capex of R2,5 billion to relieve this pressure and create capacity for two million users by this time next year." said Vodacom Group chief executive Alan Knott-Craig. The R2,5 billion shopping list will be spent mostly on infrastructural equipment supplied by Alcatel, Motorola and Siemens and includes 1 000 micro base stations, 6 voice-mail platforms and 2 additional Intelligent Network platforms. Knott-Craig says the investment is entirely self funded. "During the financial year ending 31 March 1998 our turnover reached R4,5 billion. At this early stage in the life of the network, our profits are re-invested in increasing network capacity." Knott-Craig said Vodacom`s prepaid product, called Vodago, accounts for some two thirds of all new business. "The large number of new pre-paid users has meant that we have had to substantially expand and upgrade our customer care service, including a 40% increase in the number of operators." An electronic recharge service for pre-paid users will be launched with the installation of electronic terminals, similar to ATM`s, throughout the country during 1998.
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