Vodacom

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Vodacom
Public
Traded as JSE:VOD
Industry Telecommunications
Founded 1994
Headquarters Midrand, South Africa
Key people

Shameel Aziz Joosub,Group CEO

Peter Moyo, Board Chairman
Products GSM-related products
Internet services
Revenue ZAR 75 711 million[1]
ZAR 20 394 million[1]
ZAR 13 667 million[1]
Parent Vodafone
Website www.vodacom.co.za

Vodacom Group Limited (Vodacom) is an African mobile communications company, providing voice, messaging, data and converged services to over 55 million customers. From its roots in South Africa, Vodacom has grown its operations to include networks in Tanzania, the Democratic Republic of Congo, Mozambique, and Lesotho and provides business services to customers in over 40 African countries such as Nigeria, Zambia, Angola, Kenya, Ghana, Cote d’Ivoire, and Cameroon. It was owned on a 50:50 basis by the South African telecommunications group Telkom and the British mobile phone operator Vodafone.[2][3] On 6 November 2008 Vodafone announced that it had agreed to increase its stake to 65%, and Telkom said that it would spin off its remaining holding by listing it on the Johannesburg Stock Exchange.[4] On April 1, 2011, Vodacom officially unveiled its new change in branding from blue to red, using the same style as its parent company, Vodafone.[5]

Vodacom provides coverage to Mount Kilimanjaro, which used to make it the highest point in the world to be covered by GSM. It no longer is, as TeliaSonera now provides coverage at the top of Mount Everest, the highest point in the world. Vodacom was aided by its optimistic advertisements at the early stages of the democratic South Africa, this includes the yebo gogo campaign which is still in effect today in South Africa. Vodacom is the leading cellular network in South Africa with an estimated market share of 58% and more than 23 million customers.

Technology[edit]

Vodacom is also the number-one provider deploying 3G, 4G and UMTS networks in South Africa and is also offering HSPA+ 21.1 Mbit/s, HSUPA (2100 MHz) and 42 Mbit/s. LTE should become commercially available by the end of 2012.[6] In terms of other technology Vodacom has its hand in Wi-Fi,WiMAX and LTE. Vodacom to date is upgrading the whole South African system to introduce these new technologies. Vodacom was the first ISP to introduce LTE to South Africa.

Sports sponsorship[edit]

Vodacom is a sponsor of South African sports. In provincial rugby union, they are the sponsors of the Pretoria-based Vodacom Blue Bulls. Vodacom was the primary sponsor of the South African Shelby Can-Am series between 2000 and 2005.

In soccer they sponsor two clubs in the Premier Soccer League, Kaizer Chiefs and Orlando Pirates. They also sponsor the South African Football Association and the national teams Bafana Bafana (men), Amajita (under 20's), and previously Banyana Banyana (women). However, MTN was the sponsor of the 2010 FIFA World Cup held in South Africa.

Vodacom also owns the naming rights to several stadia, among them Vodacom Park in Bloemfontein and Loftus Versfeld in Pretoria.

Recent news[edit]

In October 2013, Vodacom announced it would be acquiring Neotel in a potential $590 million deal.[7] Regulatory approval by the Independent Communications Authority of South Africa was still pending at the end of December 2014,[8] with many competitors not keen on it going ahead.[9]

Controversies[edit]

On May 17, 2009, a court dismissed a joint COSATU and ICASA application to stop Vodacom's JSE listing. Chegoane Mabelane, the South African article writer and prominent supporter of both African National Congress and its alliance; in one of his articles stated that the interdict to stop listing was fair.

In January 2010 the Sunday Times alleged that Alan Knott-Craig, former Vodacom CEO, helped his son with business ventures using Vodacom resources. He also allegedly awarded a multi-million-rand contract to a marketing and advertising company run by family members.[10][11][12]

Member Companies[edit]

As at March 2014, the companies that comprised the Vodacom Group include, but are not limited, to the following:[13]

  • Vodacom (Pty) Limited - 93.75% Shareholding - South Africa
  • Vodacom Tanzania Limited - 65% Shareholding - Tanzania
  • Vodacom Congo (RDC) s.p.r.l. - 51% Shareholding - Democratic Republic of Congo
  • VM, SA - 85% Shareholding - Mozambique
  • Vodacom Lesotho (Pty) Limited - 80% Shareholding - Lesotho
  • Vodacom Business Africa (Nigeria) Limited - 100% Shareholding - Nigeria

Ownership[edit]

The shares of Vodacom Group are listed and traded on the JSE, under the symbol: VOD. The shareholding in the group's stock was as depicted in the table below:[13]

Vodacom Group Stock Ownership
Rank Name of Owner Percentage Ownership
1 Vodafone Investments SA (Pty) Limited 65.00
2 South African Government 13.91
3 Others 21.09
Total 100.00

See also[edit]

References[edit]

  1. ^ a b c "Annual Results 2014" (PDF). Vodacom. Vodacom. Retrieved 20 September 2014. 
  2. ^ Introduction Page on Vodacoms Website. http://www.vodacom.com/vodacom/about_vodacom/introduction.jsp
  3. ^ Vodacom Business article by the BBC. http://news.bbc.co.uk/2/hi/business/4434862.stm
  4. ^ Vodacom article by the Wall Street Journal http://online.wsj.com/article/SB122596655256404705.html?mod=googlenews_wsj
  5. ^ http://www.techcentral.co.za/vodacom-goes-red-restructures-its-business/22265/
  6. ^ [1] MyBroadband
  7. ^ South Africa's Vodacom looks to boost data with Neotel purchase, International: Reuters, 2013 
  8. ^ Mochiko, Thabiso (2014-05-29). "Icasa denies delays aided Vodacom’s Neotel deal | Telecoms & Technology". BDlive. Retrieved 2014-06-02. 
  9. ^ "Biggest SA tech deals and mergers". MyBroadband BusinessTech. MyBroadband. 2014-12-29. Retrieved 2014-12-31. 
  10. ^ Knott-Craig denies any wrongdoing at Vodacom M&G
  11. ^ Knott-Craig hits out at claims News24
  12. ^ 2nd is Nothing - Creating a Multi-Bilion Rand Cellular Industry by Alan Knott-Craig with Eunice Afonso - 2009 Business Day
  13. ^ a b "Vodacom Group 2014 Annual Report" (PDF). Vodacom Group. March 31, 2014. Retrieved December 31, 2014. 

External links[edit]