Cellular network operator Vodacom says prepaid airtime has been and will be the major engine for growth in the mature SA market.
Managing director of Vodacom Andrew Mthembu said Vodacom has now made cellular accessible to anyone who can afford R10 per month, dropping the entry level to its lowest level ever and making cellular accessible to low-income users.
"Our market research showed that there is a need for a product which allows the user incoming calls only, resulting in the launch of a new R120 Incomer Vodago voucher," Mr Mthembu said. This product provides the subscriber with a one-year airtime window for free incoming calls and free calls to voicemail and emergency services. If users want to make outgoing calls, they can buy additional airtime with the existing range of Vodago vouchers. Users will also be able to accumulate airtime for outgoing calls during the remainder of the 365 days that their Incomer voucher is valid for.
Prepaid subscribers now account for more than half of Vodacom`s customer base of more than two million users. This growth in prepaid has necessitated the commissioning of three Intelligent Network platforms in addition to the existing three, as part of Vodacom`s R2,3 billion capex programme for the current financial year ending 31 March 2000. "The ongoing growth in prepaid customers has also required investment in a number of new voicemail platforms and adding substantial capacity to our Customer Care division," Mr Mthembu said.
"Prepaid has been especially popular among people who don`t have a credit record because they were previously excluded from the formal economy. Our research shows that 18% of the prepaid users in the sample are entrepreneurs in the informal sector who spend up to R1300 p.m. on airtime.
"As a result Vodacom`s base stations in areas such as Soweto, Khayelitsha and Alexandria a third busier than the average in the rest of the country," Mr Mthembu said.
He said the Vodago Incomer was also aimed at users who needed a cellphone only for emergencies, as well as low volume, budget conscious users. "For R10 a month people can now have direct access to Vodacom`s emergency services at the touch of a button.
"Prepaid cellular will continue to pave the way for innovative products and services in the South African market. Last year Vodacom was the first Internet Service Provider in the world to offer prepaid access to the Internet. As we continue to listen to our customers and provide them with products they need, prepaid will remain the major spur for the growh of cellular," Mr Mthembu said.
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