Voice

Mobile voice services are the largest contributor to Vodacom’s revenue and include revenue generated by customers from outgoing and incoming traffic, international roaming, incoming visitor roaming, national roaming and carrier voice services.

Outgoing voice traffic

Prepaid customers are charged for voice services on a per minute or per second basis and do not pay a monthly subscription charge. Prepaid recharge vouchers of various value denominations can be purchased from a range of retail outlets. Recharge vouchers are distributed physically and electronically across all of the countries in which the Group operates.

A range of customised subscription based mobile service packages are offered to contract customers. These packages, which are tailored to individual country markets, include hybrid contracts (fixed value which can be topped up using prepaid vouchers) for consumer customers, standard subscription packages for consumer customers, business packages and packages targeting the small and medium enterprise market. Contract subscription is typically for an initial 24-month period with monthly subscription and call charges varying with each package.

In 1996 Vodacom SA developed community service telephone units designed to be used in communities which had limited access to telephone services. This has now developed into a successful business model and has been introduced into Vodacom’s other countries of operation. Community phone shops are run by entrepreneurs and some offer complementary services including internet and email access.

Incoming voice traffic

Vodacom earns revenue when calls which originate outside of its networks terminate on its networks. These termination fees are either negotiated between telecommunications operators or based on rates determined by local regulators. In each of its countries of operation Vodacom has entered into interconnection agreements with fixed, mobile and VANS operators.

International roaming

Vodacom offers its customers international roaming services which allow customers to make and receive calls whilst travelling abroad by using the networks of operators with whom Vodacom has entered into international roaming agreements. The type of customers and their technology platform determine the extent to which customers are capable of roaming internationally. Vodacom SA has international roaming agreements for its contract and prepaid customers, GPRS roaming agreements for roaming contract customers and 3G roaming agreements for contract customers. Each of the operating companies outside of South Africa has similar agreements in place. In addition to allowing Vodacom customers to roam whilst travelling internationally, Vodacom generates revenue from other international MNO customers roaming on its networks.

National roaming

National roaming agreements unilaterally enable the customers of third parties to make use of Vodacom networks to make and receive calls and to access other telecommunications services. Vodacom SA has a 15 year national roaming agreement in place with Cell C, which is terminable on or after 14 November 2016. Vodacom SA charges a fee to the third party based on the volume of traffic, subject to a minimum fee, which is originated by customers who are roaming on Vodacom SA’s network.

Carrier voice

On 30 December 2008, Vodacom Group completed its acquisition of Gateway. Through Gateway’s carrier services business, the Group offers inbound and outbound connectivity as well as domestic backhaul services to telecommunications operators in Africa.