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Vodacom to spend R500mn on network upgrades
South Africa’s largest telecoms operator, Vodacom is spending half a billion rand to improve its network capacity over the next two months. This follows a spike in data traffic since the 21 day lockdown, which has now been extended to the end of April. For more the detail on expected returns from this investment, CNBC Africa spoke to Andries Delport, Chief Technology Officer at the Vodacom Group.
Wed, 15 Apr 2020 15:25:55 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The spike in data traffic on Vodacom's mobile and fixed networks has necessitated a R500 million investment in network upgrades to enhance capacity and maintain service quality.
- Vodacom anticipates sustained demand for data services post-lockdown, driven by remote working trends and reduced mobile data tariffs.
- The allocation of funds solely to South Africa underscores the company's focus on upgrading base station capacities and network infrastructure to meet increased data traffic requirements.
South Africa's largest telecoms operator, Vodacom, is set to spend a whopping R500 million on network upgrades to improve its network capacity over the next two months. This decision comes in response to a significant spike in data traffic experienced since the onset of the 21-day lockdown in South Africa, which has now been extended to the end of April. To delve deeper into the expected returns from this substantial investment, CNBC Africa had the opportunity to speak with Andries Delport, Chief Technology Officer at the Vodacom Group.
Delport shared insights on the key factors driving the need for these network enhancements. He highlighted that the surge in data traffic has been substantial, especially on Vodacom's mobile and fixed networks. The data traffic on the mobile network has shot up by a remarkable 40 to 50 percent compared to pre-lockdown levels. On the other hand, the fixed network has witnessed an exponential increase of 250 percent in data traffic. Delport attributed these surges to the uptick in activities such as video streaming, online conferencing, and remote working as a result of people staying and working from home.
When questioned about the sustainability of the increased data traffic post-lockdown, Delport expressed confidence in the continued demand for data services. He stated that even after the lockdown measures are lifted, the company foresees a lasting impact as individuals and businesses may continue working remotely for an extended period. Additionally, Vodacom's reduction of mobile data tariffs by up to 40% is expected to incentivize greater data usage and drive sustained network traffic.
Moreover, Delport clarified that the R500 million investment is earmarked specifically for South Africa and will be primarily channeled towards upgrading base station capacities and network infrastructure. These upgrades are vital to ensuring that the network can accommodate the surge in data traffic and maintain service quality amidst the increased demand.
In a separate segment of the conversation, Delport briefly touched upon Vodacom's recent acquisition of complete ownership of the M-Pesa brand in East Africa. While refraining from divulging specific details on future plans for the mobile money platform, he hinted at the company's enthusiasm for the mobile money sector in Africa and the potential for innovative product offerings.
Overall, Vodacom's strategic investment in network upgrades aligns with its commitment to providing robust and reliable telecommunication services to cater to the evolving needs of its customers amidst the current global crisis. The company's proactive approach towards enhancing its network infrastructure reinforces its position as a leading player in the telecommunications industry, poised to meet the escalating demands for connectivity and data services.
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