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Unprecedented growth for Vodacom`s overseas partner

Vodacom edges towards five million customers
By Vodacom
Johannesburg, 29 Jan 2001

Vodafone Group Plc, the world`s biggest mobile telephone company and a shareholder of South African cellular Vodacom, almost doubled its base during 2000. The company`s global proportionate customer base* reached 78 million at the end of last year, compared to 35 million proportionate customers at the end of 1999.

"It is interesting to note that Vodafone`s United Kingdom network connected 1.4 million new customers during the quarter ending 31 December 2000, while Vodacom in South Africa connected some 800 000 new customers over the same period. One would expect the gap to be much greater owing to the UK`s larger population and highly developed economy," commented Joan Joffe, Group Executive - Corporate Affairs of Vodacom.

She said that Vodacom had reached its target of some 400 000 new customers over December last year and added that Vodacom customers sent about 9.4 million SMS text messages on Christmas Day alone and almost 8 million on New Year`s Day.

Ms Joffe explained that factors unique to South Africa such as concerns, low fixed-line penetration, and a special emphasis on making cellular accessible to the nation`s most disadvantaged citizens, have all combined to edge Vodacom closer to the five million customer mark in just six years.

"Furthermore, Vodacom Tanzania now has some 60 000 customers after just six months of commercial operations. Vodacom`s success in one of the world`s poorest countries has proven that cellphones are not the exclusive preserve of the elite, as had largely been the case overseas before Vodacom pioneered prepaid cellular in South Africa in 1996," said Ms Joffe.

Of the new additions to Vodafone Group`s customer base, 7.9 million were derived from organic growth and 5.3 million from increases in shareholdings made during the quarter.

Commenting on the latest figures, Chris Gent, Chief Executive, Vodafone Group Plc, said: "These figures show strong underlying growth from virtually all of our networks and are further enhanced by our initial investment in China and our increased ownership in Spain and Japan. We are well on track to exceeding 50% customer growth for the fourth successive year."

Vodafone Group Plc has interests in mobile communications networks in 25 countries on five continents and owns 31.5% of Vodacom.

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Vodafone Group Plc

"Global proportionate customer base" = the number of Vodafone Group Plc customers connected to its networks worldwide taking into account the company`s shareholding in those networks. For example: Should Vodafone own 50% of a network having 200 000 customers, then Vodafone would have 100 000 proportionate customers.