Having already invested more than R11,4 billion in its network since 1994, Vodacom will spend an additional R3,7 billion on capital projects in 2001.
R835-million network and service upgrade already underway, including a R67-million Intelligent Optimisation Service. More money for consumers by way of less dropped calls, price of SMS` slashed to 15 cents on Messenger package and free repairs for two years on new Vodacom cellphone warranty
In the face of looming competition from a third cellular operator, Vodacom has made a bid to optimise its efficiency to its 3,6-million subscribers with an immediate R835-million network and service upgrade which will reduce dropped calls by 25%. In addition, value-added offerings will provide an exclusive two-year warranty on new cellphones and slash the cost of communicating on the Messenger package to 15 cents an SMS call - 300 percent cheaper than a fixed line call or fax.
According to Andrew Mthembu, MD of Vodacom (Pty) Ltd., an upgrade of this size and scale has not been undertaken anywhere in the world and forms part of Vodacom`s plans to spend R3,7 billion on capital projects in South Africa next year.
The first phase of the upgrade - a R67-million Intelligent Optimisation Service - comes at a time when Vodacom is looking at ways to optimise its GSM900 spectrum and better prepare for any eventuality which may result from its application for GSM1800 bandwidth.
Mthembu said that Vodacom had a duty to take every possible step to deal with the inherent limitations in the amount of GSM900 spectrum available to ensure that increased cellular traffic did not compromise its service to its 3,6 million customers.
"Our optimisation drive will help ensure that we are able to maintain our world class service until such time as we obtain more frequency spectrum from the Independent Communications Authority of South Africa (ICASA)."
Mthembu reports that Gauteng customers are already responding positively to the greater efficiency and network quality resulting from the upgrade. Based on this, Vodacom is also replacing all its base station antennae in Kwa-Zulu Natal, with smaller-scale optimisation in the Northwest Province, Mpumalanga and the Northern Province.
"These initiatives will put more money into our customers` pockets as they have less call redials, free repairs on new cellphones for two years and can now send an SMS for 15-cents, on the Messenger package, which is by far the cheapest way to communicate in this country.
"These efforts all form part of our on-going commitment to make cellular technology affordable to everyone in this country. Credence to this, is visible in the fact that we equalised the cheapest cell call with that of fixed line calls more than a year ago already and we are now pushing the envelope to further slash the cost of communicating with new SMS products and services."
Vodacom customers recharged their prepaid cellphones about 3.1 million times during August alone and the company continues to connect some 150 000 new customers to its network every month.
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Vodacom also recently announced that it has begun allocating cellphone numbers beginning with "072" to new customers because the original number ranges allocated are almost fully utilised. The "082" prefix was previously the only number range to represent Vodacom cellphone numbers.
After originally forecasting 250 000 subscribers in the first 10 years of operations, Vodacom now has more than 3,6 million customers after just six years of operations.
The exponential growth in connections had been accelerated by the launch of prepaid cellular in 1996. More than 90% of all new Vodacom connections are prepaid and the 072 range will initially be used exclusively for Vodago prepaid customers, allowing much needed space to expand.