Vodacom's unprecedented free gig promotion saw a record amount of data moving through the network on Sunday, but the backlash around slow speeds on the day shows its infrastructure needs improvement as operators push data uptake.
The operator - SA's largest - offered all of its 33 million customers a gig of free data on Sunday to celebrate its 20th birthday. However, many people complained they were unable to make much use of the offer, with some reporting abysmal download speeds.
Spokesman Richard Boorman notes over eight million people took part in the free data campaign, which coincided with Mother's Day. He says a network record was set, with throughput peaking at 29Gbps, 20% higher than anything it had seen before. "Data traffic was as much as 150% higher than normal in high-demand areas."
Showing the gaps
World Wide Worx MD Arthur Goldstuck says the number of users who took up the offer was "wildly impressive", although the level of complaints shows Vodacom has some way to go in developing its infrastructure.
Cellphone companies have been pushing data uptake in a bid to grow their top lines as the income from voice calls continues its downward trend.
Vodacom will continue to invest in the network to increase capacity, allowing it to bring prices down without impacting quality, says Boorman. "We've earmarked around R9 billion for capital investment in the current financial year, an increase of roughly 30% on last year."
Goldstuck says the offer, which will have a short-term impact in end-users' memories, was a good practise round for Vodacom to show where the holes in its infrastructure are as Sunday pushed the network to the limit.
The future of data - either fixed or mobile - will be in video, and operators need to be ready for that, says Goldstuck. He notes operators do not often get a chance to stress-test their networks, and Sunday was a "great opportunity' to do so, which will filter through to future planning.
Vodacom will have "learnt a lot" and gained insight into what holes need to be plugged and where the infrastructure needs upgrading, says Goldstuck.
Unhappy customers
However, the offer also resulted in a deluge of complaints as people took to Twitter, Facebook and HelloPeter.com to vent their frustration. The buzz has quietened today, with comments returning to normal issues such as billing and general connectivity.
Corporate marketing analyst Chris Moerdyk says, despite all the protestations, consumers are generally apathetic and will not act on their wrath. "SA consumerism is still founded in abject apathy."
Moerdyk notes, however, that Vodacom's future ability to attract new customers will have been briefly hampered. He says the free offer, while not damaging to Vodacom's brand in the long term, will damage a campaign to attract new customers.
Boorman says Vodacom would "obviously prefer it if 100% of our customer base was happy, but the essence of innovation is trying out new ideas and taking the occasional risk". He notes the campaign was not only aimed at the tech-savvy customers in the suburbs but all customer groups across the country. "From that point of view, it did make a real difference and helped to bridge the digital divide."
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