Key Competitor Activities January 2015

This Month:
MTN launched a video-on-demand service, FrontRow

Cell C announced several price plan changes
Web Africa announced FTTH packages
MTNs data sharing offer launched
Key Competitor Activities

Consumer and Enterprise
January 2015
Prepared by Vodacom Strategy & Research

Contact: Leandra Jonker or Tersia Esbach
January 2015
Orange is opening their first retail shop in Claremont
This and all previous editions available at http://ci.vodacom.co.za
Content
This report provides an overview of competitor activity in the consumer and enterprise segments during December 2014 and
January 2015.
Highlights overview of competitor highlights During December 2014 and January 2015
Consumer P&S Timeline
Enterprise Market Competitor Activity
Competitor Activity
MTN
Telkom
Cell C
Adjacent Players
Mergers & Acquisitions - New
Financial and Operational KPIs
Vodacom Strategy & Research
Key Competitor Activities January 2015
C3 Vodacom Confidential
Highlights Seven things of note

We have added an additional slide from this month focussing on Merger &
Acquisitions in our industry over the past year. See slide 15.
1. After a successful pilot MTN launched FrontRow, a video-on-demand
service offering access to movies and television shows. Monthly
subscription starts at R199 per month (R179 for a trial period). Two
service offerings are available FrontRow Club and FrontRow
Premiere. The Premiere service offers movie rentals at R15 per older
title and R27 for latest titles. An option including a 10GB data bundle
is also available at R499 (R399 during the promotional period). Data
bundles which can only be used to access FrontRow content are
available at R300 for 10GB, R450 for 20B, and R800 for 50GB. The first
1,000 customers to subscribe to the service will receive their first month
free. Customers can view content via an Internet browser, or on
Android or iOS mobile devices. An Android app is available, with an iOS
app planned.
2. While MTN reported a 49% increase in SMS traffic on

Christmas Day, Cell C reported that SMS traffic declined by
21% over the Christmas period and 22% on New Years Day.
The SMS decline could be attributed to Cell Cs free WhatsApp
offering, which has been extended to end March 2015, and
illustrating the possible cannibalisation of SMS by IM services
such as WhatsApp.
3. Cell C announced several price plan changes. The pricing of
the majority of data bundles were increased, with the
exception of the larger 10GB and 20GB bundles, which were
decreased to an effective in-bundle rate or 5c/MB. A new 25MB
bundle was also added at R6. Selected Smartdata contract
monthly subscriptions were cut. SmartChat voice contracts
will no longer be available. Current customers will remain on
their current package for the duration of their contract, and will
enjoy a lower out-of-bundle data rate of 79c/MB.
StraightUp Contract and TopUp monthly subscriptions were
increased, and out-of-bundle voice rates on all StraightUp
packages were increased from 79c/min to R1.05/min. These
changes take effect on 1 February 2015.
Cont. on next page

Highlights Seven things of note

4. Web Africa launched FTTH using Telkoms network. Pricing starts at
R639 for a 20Mbps line to R849 for a 100Mbps line, both excluding
data. A range of options including data is available ranging from
R788 per month for a 20Mbps line with 40GB of data (plus an additional
80GB of after hours data) to R2 048 per month for a 100Mbps service
including 400GB of data (plus an additional 800GB of after hours data).
WebAfrica launched fibre offers in Parkhurst in November last year.
Line rental + data package
20Mbps
40Mbps
100Mbps
40GB (+80GB after hours)
R788
R888
R998
R838
R938
R1,048
R938
R1,038
R1,148
R1,038
R1,138
R1,248
R1,238
R1,338
R1,448
R1,538
R1,638
R1,748
R1,838
R1,938
R2,048
Source: My Broadband
6. Google is shutting down Woza, a free website design tool aimed at

startups and SMEs on 28 February 2015. Companies are informed on
the site that their sites will disappear from May 2015. According to
Google this forms part of their plan to improve their SME offerings.
6. Another sub-R1 000 smartphone was announced by Pinnacle

Africa. The Windows based Proline SP4 will retail at R999, is
powered by Qualcomms quad core Snapdragon 200 processor
and has 512MB RAM.
7. Orange is opening their first retail shop in Claremont, where

customers will be able to purchase products directly, and will
also function as a point of service for those who have purchased
products online.
8. MTN launched a data bundle sharing service, Data Share,
which allows MTN customers to share their data bundle with
up to 20 other MTN customers. The service is available free to
all MTN customers.
Consumer Market
Consumer P&S launches (August 2014 January 2015)
Consumer P&S launches (August 2014 January 2015)

August 14
September 14
November 14
Dec 14 January 15
MegaBonus (30/11/14), extended in December to 31/12/14
Nite & Daily Internet
WhatsApp zero-rated, extended to 31/03/15
66c/m prepaid promo (1/06

30/09), in July dropped further to
50c/min (30/09/14)
Talk Free & 1c Per Sec

promo 31/08
1c Per Sec Promo 31/08
October 14
* Promotions
Lumia 730; iPhone 6
Infinity Select extra data(15/03/14)
66c/min voice rate

permanent
2.4GB once-off data (31/01/15)
BlackBerry Z3
Bite sized data bundles
Pay4Me
Steppa
FrontRow
iPhone 6; Galaxy Note 4
Night Express Bundles & One

Time data Bundles
Data Share
Sky Unlimited Promo 30/09

Talk Free
Price Plan Adjustments
Daily Surprises summer promo (to 14/01/15)
Ad hoc data Promo 31/08
Wow Bonus Weekend
Express Bundle Promo
International voice promo (31/01/2015)
New Internet Bundles
Roaming (Saudi Arabia)

promo (to 10/10/14)
MTN Sky Promo (31/01/2015)
Cliq5 31/10
Free Symfy Africa Promo
Rush Hour 30/11
Data Bundle Promo extended to 31/08/14 offering additional free data & extended validity in 06/14; additional data promo extended to 30/11/14
SmartHome deals
iPhone 6
Unlimited Lite
Prepaid internet starterpacks
LTE-A launch, promotional

package
Samsung Direct Billing
Completely Unlimited SIM (20/11/14)

Smartplan 100
Promotional Bundles
Black Friday deals 5GB data;

XBox
DStv Explora
Enterprise Market
Competitor Activity at a Glance
Enterprise Market Competitor Activity at a Glance South Africa

Segment
Segment
Segment
Segment
Segment
SoHo/SME
SoHo/SME
SoHo/SME
SoHo/SME
Large/VGE
Large/VGE
Large/VGE
Large/VGE
SoHo/SME
Large/VGE
Significance
Significance
Activity
Activity
Activity
Activity
Activity
MTN will offer Amazon Web

Services, a cloud computing
offering, through a service
dubbed Direct Connect to
businesses across Africa. Clients
will be provided with connectivity
to their data centres or
businesses and the AWS EU
Ireland region through MTNs
extensive Global MPLS network.
MTN launched Data Share, a

service that allows an MTN
customer to share their data
bundle with up to 20 MTN
numbers. The service is available
to all customers and can be
activated via USSD. Any SIM
enabled device can be linked to
the main account holder. While
the service was launched to the
consumer market, it will be
attractive to SME/SoHo clients
too.
Telkom will focus on the SME

market this year.
Dedicated
business desks to serve this
market are now available in
Telkom stores, where ICT needs
of SME are analysed to help
choose suitable products across
mobile and fixed offers.
Google is shutting down Woza, a

free website design tool aimed at
startups and SMEs on 28 February
2015. Companies are informed
on the site that their sites will
disappear from May 2015.
According to Google this forms
part of their plan to improve their
SME offerings. Local tech startup Vigo, offers an online web
creation platform targeted at
SMEs, has stepped in, offering
clients a seamless transition
from their current Woza Web
sites to Vigo.
MTN appointed Debbie Minnaar

as General Manager for Products
and Services in their Group
Enterprise Business unit. She will
be responsible for determining
the ICT offering across all markets
and identification of key
partnerships to drive Cloud and
other services.
More & more
Significance
more
more
More & more
Significance
Significance
MTN is restructuring their

enterprise unit in South Africa in
order to enhance customer
service
and
market
differentiation, and confirmed
retrenchments in the unit due to
the restructure.
More & more
Competitor Activity
MTN launched FrontRow, a VoD service

Telkom to focus on SME market
Cell C announces changes to pricing structure
Adjacent Players
Article links
MTN launched FrontRow, a VoD service
Consumer
Products &
Services
Consumer
Broadband
Financial &
Operational
KPIs
MTN launched FrontRow, a video-on-demand service offering access to movies

and television shows. Monthly subscription starts at R199 per month (R179 for
a trial period). Two service offerings are available FrontRow Club and
FrontRow Premiere.
MTN launched Data Share, a service that allows an MTN customer to share their
data bundle with up to 20 MTN numbers. No connection or linking fees apply.
Other
MTN erroneously sent messages to non-subscribers notifying them of free

Twitter access. This promotion is available to all MTN since May 2014, and is
still on-going.
MTN reported that voice call traffic was ~100% higher on Christmas day, while
SMS traffic increased by 49% and data by 60%. New Years Eve saw ~106%
increase in voice call traffic, while data traffic increased by 78%.
MTNs shares were upgraded from hold to buy by Deutsche Bank.
MTN appointed Debbie Minnaar as General Manager for Products and Services
in their Group Enterprise Business unit. She will be responsible for determining
the ICT offering across all markets and identification of key partnerships to
drive Cloud and other services.
MTN is restructuring their enterprise unit in South Africa in order to enhance
customer service and market differentiation, and confirmed retrenchments in
the unit due to the restructure.
MTN has opposed the Vodacom-Neotel deal, stating it would give Vodacom
unfair advantage, and that Neotels spectrum should be returned if change of
control is approved.
MTN apologised for network disruptions experienced due to load shedding,
upgrades, vandalism, theft, and the migration of Nashua customers.
10
Telkom to focus on SME market

Consumer
Products &
services
Enterprise
Products &
Services
Financial
KPIs
Network
Telkom launched direct carrier billing in partnership with Bango and

Samsung. The service will be available to Samsung smartphone and
tablet customers.
Telkom will focus on the SME market this year. Dedicated business
desks to serve this market are now available in Telkom stores, where
In December Telkoms share price reached a new five year high of R70.
Since its lowest point 18 months ago, their share price has increased by
almost 500%, and over the past year gained almost 150%.
Other
Article links
ICT needs of SME are analysed to help choose suitable products across mobile
and fixed offers.
LTE coverage was expanded to an additional five suburbs in Gauteng,

Cape Town, and KZN. LTE-A is currently offered at R1399 per month on
a 36 month contract for a promotional period.
It is rumoured that Telkoms ADSL entry-level line will be increased
from 2Mbps to 4Mbps.
Telkom will now focus on FTTB, with their coverage coinciding with their FTTH
coverage.
Telkom M2M subsidiary, FastNet, selected Semtech Corportaions LoRa
technology to target low power connectivity for IoT applications. FastNet
plans on building a network specifically of IoT services.
Telkom appointed four new non-executive Directors, and announced

the resignation of non-executive director Dr Clive Fynn.
480 Call Centre staff contracts will not be renewed, and were allegedly
removed from the premises by security guards. According to Telkom
the affected staff members were notified at the beginning of
November. The CWU will fight this decision on behalf of the affected
workers. According to Solidarity this move was driven by the new
Labour relations Amendment Act (effective 1 January 2015), which
requires companies to offer the same benefits to temporary employees
after three months as they do to permanent employees.
Telkom announced that discussions on the extension of their roaming

agreement with MTN are still in process.
Telkom is suing Neotel and their sub-contractor Reesa Telecoms and Electrical
for R363 744 for damages on underground cables in hillcrest (KZN).
Telkom and Blue Label telecoms have reached a settlement over a dispute
following the Multi-Links failure in Nigeria. All claims and counter claims were
withdrawn.
11
Changes made to pricing structure

Consumer
Products &
services
Consumer
Broadband
Operational &
Financial
KPIs
Network
Other
Article links
MegaBonus, which offers four times the customers recharge value, has
been extended to 31 December 2014.
Cell Cs SmartChat voice contract range will not be available after 1
February. Existing customers will remain on their contracts for the
remainder of their contract period, and also benefit from a reduction in
the out-of-bundle data rate from 99c/MB to 79c/MB.
Cell C cut the price of their 2.4GB once-off data bundle from R189 to
R79. 200MB of data is allocated each month for 12 months. This
promotion will be available until end January 2015. (December 2014)
Cell C has increased the price of the majority of their data bundles,
increasing the effective in-bundle rate from the 15c/MB flat rate
implemented. A 25MB bundle has also been announced, at R6
(24c/MB).
Cell C reported a 7.1% increase in voice over the Christmas period, while
data usage increased by 62% and SMS declined by 21%. On New Years
Day voice increase by 4.8%, data by 57% and SMS was down 22% yearon-year.
Cell Cs zero-rated WhatsApp promotion has been extended to 31 March 2015.

Cell C announced changes to their pricing structure which was implemented
on 1 January 2015 for prepaid customers, with data and contract pricing
changes due on 1 February 2015.
Cell C has announced an increase in the monthly subscription of their Straight
Up contract and top up packages. Out-of-bundle voice rates will also increase
from 99/min to R1.05/min.
The out-of-bundle rate of 99c/MB remains unchanged on all data bundles.

The monthly subscription on selected Smartdata contracts has been cut.
Cell C increased the data allowance on their Infinity Select offer to 10GB (from
3GB) to all customers singing up for the contract between December and 15
March 2015. (December 2014)
Saudi Telecom has attributed a R1.2 billion impairment to Oger Telecoms in

Cell C, and said they would be evaluating options relating to their international
investments.
Cell Cs RAN upgrade which was completed in Gauteng will address

network instability issues and has created the required framework for
their LTE strategy. The upgrade involved replacing 1 215 base stations.
Cell C is investing R2.4 billion in their network this year.
During 2014 442 base stations were erected nationwide, with 256 of these in
Gauteng. An additional 158 are planned for Gauteng in early 2015. Fibre
deployment to connect all base stations is a top priority for 2015.
Cell C has opposed the Vodacom-Neotel deal, stating that it would

entrench Vodacoms dominance, and possibly lead to abuse of
dominance.
Cell C lodged an application with the high court to review the new MTRs
implemented last year.
12
Adjacent Players
Consumer
Products &
Services
Consumer
Broadband
Enterprise
Products &
Services
Network
Article links
Free VoIP and a movie streaming service, Wi-Fi Drive-Inn, will be

launching on the City of Tshwanes free WiFi network during 2015.
Pinnacle Africa announced the Proline SP4, a R999 Windows based
dual-SIM Smartphone. The device is powered by Qualcomms quad
core Snapdragon 200 processor, has 512MB RAM, a 480x800 LED
display and runs on Windows Phone 8.1.
Axxess launched prepaid ADSL vouchers that can be converted into
mobile data via their Client Control Panel or Axxess Mobile App. The
data has a 3 month roll-over.
Johannesburg based Data SIM launched a SIM card offering unlimited
MTN mobile data at R149 per month. According to founder Saeed
Moosa Data SIM has an agreement with Mocks Technologies that has
an APN with MTN, after MTN announced they had no working
relationship with Data SIM. MTN subsequently closed down the APN
owned by Mock Technologies, as they were not allowed to resell to
third parties. Data SIM plans on launching another unlimited data
service soon, this time from Telkom Mobile.
Google is shutting down Woza, a free website design tool aimed at

startups and SMEs on 28 February 2015. Companies are informed on
the site that their sites will disappear from May 2015. According to
FNB is reportedly expanding their fibre network to act as a back-haul

for telecoms services. No details on what services will be offered.
Nedbank is trialling a mobile payments service, Accolades, which uses

BLE beacons to connect customers with participating retailers when
entering a store. The app facilitates secure card-based mobile
payments. In concept, customers will be able to select products and
quantities purchased within the app and check out using the app.
Vox Telecom was awarded the contract to deploy satellite-based

internet access and voice to 300 farmers in the Karoo in areas around
the sensitive radio astronomy telescope. Famers will receive free
satellite receiver equipment and 2GB of data at R119 per month
(2Mbps download and 512Kbps upload speeds).
Engen launched free WiFi at their 1-Stop service stations in December.
Web Africa launched FTTH using Telkoms network and offering
speeds of up to 100Mbps. Pricing starts at R639 per month for a
20Mbps line to R849 per month for 100Mbps (data excluded). A
R1 749 set-up fee applies, which includes a Huawei router.
OpenWeb is offering premium uncapped ADSL customers free mobile
data of between 500MB for 2Mbps customers to 4GB for 40Mbps
customers.
Google this forms part of their plan to improve their SME offerings.
Local tech start-up Vigo, offers an online web creation platform
targeted at SMEs, has stepped in, offering clients a seamless transition
from their current Woza Web sites to Vigo.
13
Adjacent Players
Other
Article links
Blue Label Telecoms have called off acquisitions talks with an

unnamed party.
The Competition Commission recommended that the Tribunal
approve Didatas acquisitions of certain MWEB divisions.
Following a Supreme Court ruling that typed e-mail signatures were
binding, Norton Rose Fulbright noted that the same rule applies data
messages, such as WhatsApp and BBM.
According to Internet Solutions the Vodacom-Neotel deal will
negatively impact competition, lead to higher prices and poor network
quality, and increase the risk of collusion.
Vigo won MTN App of the Year 2014 and 2014 NSBC Business
Champion of SA Award and Carl GER Global Technology Entrepreneur
of the Year.
A Netflix spokesperson has confirmed that they will launch in South
Africa within the next two years, as part of their global expansion
strategy.
Facebook is reportedly opening a local office. They have placed an
advert to a position which would be located in Joburg.
Craig Fleischer, former mobile communications head at Samsung
South Africa, has been appointed as Neotels Chief Sales and Market
Officer.
Altron has warned that headline earnings for the year ending February
2015 would be at least 40% down due to difficult trading conditions.
Vox Telecom announced a stand-alone business strategy will be
followed and that the company is no longer for sale.
According to the latest Akamai State of the Internet report South Africa
was the only EMEA country to not meet their minimum broadband
speed requirements, with an average broadband speed of 3.6Mbps
(10Mbps and 4Mbps are their high broadband and broadband
thresholds)
The Competition Commission approved the merger of Kalahari and

Takealot, on condition that job losses do not exceed 200.
The DA is questioning the validity of a R4.3 billion tender for 5 million
government-subsidised set-top boxes, based on several factors, including the
low key measure in which it was conducted; financing of the devices only
R2.39 billion has been approved, DTH standards have not yet been approved,
and the Broadcast Digital Migration policy has not yet been approved by the
Cabinet.
An outgoing ICASA councillor, Joseph Leboosa, accused the regulator of
operational inefficiency and void of leadership, urging parliamentary
committees to review several matters.
ICASA responded to criticism received on their IMT roadmap published in
November 2014. According to ICASA the Roadmap takes the Radio
Frequency Migration Plan of 2013 a step further, by assessing the overall
demand for mobile broadband how to clear the identified IMT bands.
The DA filed an application to access minutes of all meetings held by ICASA
as the regulator has failed to publish these as required. According to the DA
the ICASA website is poorly maintained.
ICASA published revised draft radio frequency spectrum regulations which
are open for industry and public comment until 13 February 2015.
In a proclamation signed by Jacob Zuma, ICASA will report to both the
Ministry of Communications and the telecoms and Postal Services
Department.
ConvergeNet will convert into an investment holding company. The
company currently has no operating entities, and was established in 2005 to
focus on converged solutions in the ICT sector.
Orange announced their first retail shop will start trading early 2015 in
Claremont in cape town.
14
Mergers & Acquisitions
New
addition
to the
monthly
CI
15
Mergers & Acquisitions

Deals not yet finalised
Date
Buyer
Target
Detail
January 2014
Internet Solutions
Antfarm
Internet Solutions bought Antfarm, an online media streaming service company providing products and services for streaming, webcasting,
podcasting and encrypted content delivery, for an undisclosed amount. The company will continue to focus on the enterprise market. IS
hopes to expand services in other African countries. more
March 2014
Didata
NextiraOne
Dimension Data announced the acquisition of subsidiaries of NextiraOne, a European communications services company, in order to meet
their target of doubling revenue to $12 billion by 2018, which will be completed in two parts.
April 2014
Altech
NuPay
Altech increased their shareholding in NuPay, a transaction service provider specialising in payment and collection solutions and managed
electronic payment solutions, to 100% in a deal worth R80 billion.
May 2014
Internet Solutions
AlwaysOn
Internet Solutions increased their stake in AlwaysOn from 51% to 100%. more
May 2014
Telkom
Business Connexion
Telkom made a R2.7 billion offer to acquire BCX in may 2014. The deal is still awaiting approval.
August 2014
Blue Label Telecoms
Via Media
Blue Label Telecoms have put in an offer to acquire a 75% stake in mobile content developer Via Media.
September
2014
Didata
MultiChoice
Dimension Data and MultiChoice have announced plans to launch WirelessCo, a JV that will combine Dimension Datas AlwaysOn and
MWEBs Wi-Fi assets. The two companies will build and operate an open-access carrier-grade Wi-Fi network. more
October
2014
Didata
Xpedia Fusion
October
2014
Didata
Agile Business
Solutions
Didata acquired 100% of privately owned Agile Business Solutions specialising in PeopleSoft and Oracle human capital management
systems. more
November
2014
MTN
Afrihost
MTN agreed to acquire 50% +1 share of Afrihost in May 2014 in a deal rumoured to be valued at around R1 billion. The deal was approved
by both the Competition Commission and Competition Tribunal in November 2014.
December
2014
Didata (IS)
MWEB
The Competition Commission recommended that the Tribunal approve Didatas acquisitions of certain MWEB divisions (MWEB Business,
core network assets of MWEB ISP, and Optinet), on condition that retrenchments not exceed 35. The deal was announced in August 2014.
January 2015
Naspers/Kalahari
Takealot
The Competition Commission approved the merger of Kalahari and Takealot, on condition that job losses do not exceed 200. more
Didata acquired 100% of Xpedia Fusion, a subsidiary of Xpedia Consulting and part of Xpedia IT. more
16
Financial and Operational KPIs
Total Telecoms Revenue
Mobile Subscription Market Share Sep 14
17
Operational and Financial KPIs

Total Telecoms Revenue
Vodacom
R 133 837m
MTN
Cell C
R 141 053m
Telkom Mobile
R 145 158m
Telkom
Back to highlights
Total Telecoms
Mobile Revenue
Revenue Market Share Market Share
13/14
13/14
Mobile Subscription Market Share Sep 14
Neotel
R 150 603m
3%
2.6%
17%
19.0%
1.6%
9.1%
2.0%
11.5%
26.8%
34.1%
Vodacom
45%
MTN
Cell C
Telkom Mobile
41.0%
52.3%
35%
FY 10/11
FY 11/12
FY 12/13
FY 13/14
Vodacoms share of the total telecommunications market at end March 2014 (estimated at R151 billion) was 41%. Vodacom leads in both revenue
and subscription market share.
The total telecommunications market grew by 3.8%, fuelled mainly by mobile network operator growth. Telkom fixed revenue declined by 2.6%
over this period.
Mobile subscription continue to grow, with SIM penetration estimated at 147% at June 2014. Year-on-year growth of 15.9% was recorded at the end
of September 2014.
Notes:
Subscription market share based on active subscriptions only.
Source: WCIS, Informa Telecoms & Media, Vodacom Strategy & Research
Total revenue reflects Vodacom financial years. Where applicable data has been recalculated to reflect this.
Source: Company annual reports, Analyst reports, Vodacom Strategy & Research
Operational and Financial KPIs
Back to highlights
MTN Interim Results June 2014

Next Results Release: Annual results for 2014 expected March 2015
Telkom Interim Results September 2014
For the six months ended June 2014 MTN Group revenue increased by 10.7% (4.1% constant
currency) year-on-year to R72 759 million, supported by continued weakness of the Rand,
particularly the stronger Nigerian Naira. The increase in revenue was mainly supported by
an 8% increase in revenue in Nigeria.
Telkom reported a 0.5% decline in operating revenue to R15.9 billion for the six months
ended September 2014. This was driven by lower fixed voice revenue and lower data leasedline revenue.
Group EBITDA increased by 19.6% (10.6% constant currency) to R33 663 million (excl. profit
from tower sales)
Fixed voice revenue was down 12% to R3.6 billion, driven by a 6.1% decline in voice minutes, a
decline in fixed lines from 3.7 million to 3.6 million, and fixed to mobile substitution.
Group Capex is down 28.1% (32.7% constant currency).
Group EBITDA increased by 12.2% to R4.4 billion. Consolidated EBITDA Margin 27.7%,
excluding one-off items. Mobile EBITDA improved by 50.7%.
Locally MTN revenue declined by 7% year-on-year to R19 157 million, while EBITDA
declined by 7.5% to R6 382 million*.
DSL lines increased by 7.4% to 965 000.
The decline in total revenue was attributed to lower outgoing voice revenue (down 8.6% to
R8 470 million) and a 30.4% decline in incoming voice revenue due to the impact of MTR
reduction.
Mobile subscriptions increased by 26.7% to 2 million, with blended ARPU up from R58.81 to
R71.99.
Mobile Revenue increased by 55% to R1.4 billion. Mobile data revenue was up 39.3% to R422
million and mobile voice and subscriptions revenue by 54.7% to R348 million.
Total interconnect revenue declined by 1.49%, while mobile interconnect saw a 81.82%
increase to R60 million.
Telkom denied underinvestment in their network after they reported a 79.9% decline in
CAPEX (R164 million) and a 42.8% decline to R1.8 billion in total CAPEX (11.4% of Operating
revenue from 19.8% in September 2013). The decline in mobile CAPEX was attributed to a
shift to a more concentrated metropolitan roll-out.
According to CEO Sipho Maseko the company hung on to fixed voice for too long and took
too long to invest in broadband and drive fibre investment. Other mistakes include the R10
billion spent on Multi-Links in Nigeria, and the most damaging according to him was selling
the 50% in Vodacom, rather than investing more by purchasing the Venfin stake to gain
control.
Data revenue increased by 13.7% to R4 483 (23.4% of total revenue) despite a 38.1%
decrease in the average price per MB. Data users increased by 2.7% to 14.7 million. MTN
now has 5.3 million active smartphones on their network.
Next Results Release: Annual results for 2014/5 expected June 2015
Competitor Activity Tables
Consumer Services - Competitor Products &

Services
Enterprise Services - Competitor Products &

Services
MTN - Products & Services
Telkom and Telkom Mobile / 8ta - Products

& Services
Cell C - Products & Services
20
Back to highlights
Consumer Services - Competitor Products & Services
The table below summarises Products and services launches, M&A activities, and network or technology improvements and launches for the past seven months
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14/Jan-15
BitCo, SANTC
OpenWeb
Axxess, Cell C, MTN
MTN
MTN, Telkom,
OpenWeb, iBurst
MTN, Telkom,
MultiChoice, MWEB,
Afrihost, Neotel
Cell C, MTN, Engen,

Web Africa, Vox
Broadband Pricing/changes/ enhancements
Telkom
Afrihost, MWEB,
Telkom
Telkom
MTN
Pricing
Telkom
MWEB, Cell C
Cell C, MTN, Axxess
Cell C
Consumer
Broadband
Broadband Promotions
MWEB, AlwaysOn,
MTN
MTN
MTN, ITNT
Cell C, OpenWeb,
Axxess
Cell C
MTN, Telkom
Telkom, AlwaysOn,
Axxess
Cell C
MTN, Telkom, Cell C
MTN, Telkom, Virgin

Mobile
Cell C
Loyalty/Rewards
Promotions
MTN
MTN, Cell C
MTN
Apps
Orange
Content
MTN
Financial/Mobile Money services
MTN
Commerce
Voice and Data
Altech, Times Media
Orange
MTN
Zapper
Standard Bank
Cell C
Nedbank
MTN, Cell C
Mr Price Mobile, MTN
VAS
Telkom
MTN, Telkom
Telkom
iBurst
Zwipit
Telkom Mobile
MTN
Pinnacle Africa
Product Cancellation
Hardware
MTN, Afrihost, Nokia
BlackBerry
Cell C
MTN, Cell C, Telkom
Access the attached Word Document for further detail on the relevant activity for each competitor by month
21
Enterprise Services - Competitor Products & Services
Back to highlights
The table below summarises Products and services launches, M&A activities, and network or technology improvements and launches for the past seven months.
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
CS
MWEB
MWEB, iBurst
Telkom, Neotel
MTN
Telkom
Dec-14/Jan-15
Enterprise
Broadband
Broadband Pricing/changes/enhancements
MWEB
Managed Services
MTN
Managed Services - changes/enhancement
MTN
Voice and Data
Telkom
Mobile Advertising
MTN
Financial Services
M&A/Investments
Network/Technology Improvements
Vumatel, FibreCo,
Western Cape
Government
MTN, Cell C
MWEB
MTN, Telkom
Broadband Infraco
Telkom, BitCo
Telkom, Cell C
Access the attached Word Document for further detail on the relevant activity for each competitor by month
22
MTN - Products & Services
Back to highlights
The table below shows only MTNs Products and services launches, M&A activities, and network or technology improvements and launches for the past seven months
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14/Jan-15
MTN
MTN
MTN
MTN
MTN
MTN
MTN
MTN
MTN
MTN
MTN
MTN
MTN
MTN
MTN
MTN
Consumer
Broadband
MTN
Pricing
MTN
Loyalty/Rewards
Promotions
MTN
Voice and Data
MTN
MTN
VAS
Content
MTN
MTN
Hardware
Mobile Money
MTN
MTN
MTN
Commerce
Enterprise
Managed Services
MTN
MTN
MTN
Voice and Data

Mobile Advertising
M&A/Investments
MTN
MTN
MTN
23
Back to highlights
Telkom and Telkom Mobile / 8ta - Products & Services
The table below shows only Telkoms Products and services launches, M&A activities, and network or technology improvements and launches for the past seven months
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Telkom
Telkom
Telkom
Telkom
Telkom
Pricing
Telkom
Telkom
Telkom
Promotions
Telkom
Telkom
Telkom
Telkom
Dec-14/Jan-15
Consumer
Broadband
Voice and Data
Telkom
VAS
Telkom
Hardware
Telkom
Enterprise
Broadband
Voice and Data
Telkom
Managed Services
Telkom
Managed Services - changes/enhancement

Telkom
Telkom
Telkom
24
Cell C - Products & Services
Back to highlights
The table below shows only Cell Cs Products and services launches, M&A activities, and network or technology improvements and launches for the past seven months
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14/Jan-15
Consumer
Broadband
Cell C
Cell C
Cell C
Pricing
Voice and Data
Cell C
Cell C
Cell C
Cell C
Cell C
Cell C
Cell C
Cell C
Hardware
Promotions
Cell C
Cell C
Cell C
Cell C
Enterprise
M&A/Investments
Cell C
Cell C
25
Article Links
26
26
Reference information
MTN
Load shedding, theft impact MTNs network quality more

MTN : Lifted to Buy at Deutsche Bank (MTNOY) more
Free MTN Twitter notifications on Vodacom more
MTN Data Share launching early 2015 more
MTN FrontRow video streaming review more
MTN launches subscription-based video service in South Africa
more
MTN unveils its video-on-demand play more
MTN launches video-on-demand services more
Icasa must block Neotel sale: MTN more
MTN appoints senior IT executive to drive enterprise business
offerings more
MTN launches data sharing service more
MTN Plans South Africa Job Cuts in Overhaul of Business Unit
more
MTN to retrench in restructuring more
MTN links up to Amazon Web Services more
Cell C
Massive Cell C data price cut more
Cell C completes Gauteng RAN upgrade more
Cell C promises network stability more
Cell C targets fibre in 2015 more
Cell C to oppose Vodacom, Neotel deal more
New Cell C data prices released more
Cell C contract price hikes on the way more
Festive season cheer for networks more
Cell C slams Vodacom-Neotel deal more
Cell C allots R2.4bn for 4G expansion more
Cell C heads to court over call rates more
Cell C unmoved by R1.2 billion investor write off: report more
Telkom
Changes to the Board more
Telkom call centre dispute looms more
Telkom contract workers get the boot more
Five more suburbs get Telkom LTE-A more
Bango brings direct carrier billing to Telkom Samsung mobile
users more
Telkom share price rallies 500% more
Telkom stock continues gains more
Telkom, Blue Label kiss and make up more
Telkom targets fibre-to-the-business more
Telkom terminations may have snowball effect: union more
Telkom South Africa Expands LTE-Advanced to Additional Five
Suburbs more
Telkom ADSL speed upgrade planned: sources more
Telkom sues Neotel for cable damage more
FastNet selects Semtech LoRa Tech as IoT Wireless Solution of
Choice more
South Africa's FastNet to develop IoT network for low-power
applications more
Telkom-MTN deal discussions continue more
South Africa: Telkom Commits to Growth of SA SME Sector more
Other
Altron warns of slump in profits more
Samsungs Fleischer takes top job at Neotel more
Free mobile data with premium uncapped ADSL more
Openweb offers free mobile data with premium uncapped ADSL
more
Sale of Vox Telecom cancelled more
Big broadband speed increases in South Africa more
Vodacom taking SA back to monopoly more
Netflix said to confirm SA launch plans more
100Mbps fibre-to-the-home from R998 per month more
Facebook is hiring in SA more
Axxess mobile data vouchers launched more

Engen offers free WiFi more
Blue Label calls off buyout talks more
Orange SA store 'won't sell junk' more
MWEB-DiData merger deal gets approval more
WhatsApp, BBM messages are legally binding in SA more
Free voice calls, movie streaming on Tshwane Wi-Fi network
more
Quiet, please! Vox wins SKA deal more
FNB adding fibre for telco network: sources more
Competition Commission gives Kalahari-Takealot deal the goahead more
Nedbank pilots mobile payments app more
R4.3 billion digital TV tender in doubt: DA more
Icasa is leaderless and clueless: councillor more
DA seeks Icasa council minutes more
New draft radio spectrum regulations released more
Zuma emasculating SAs ICT sector more
Now Icasa to report to Muthambi and Cwele more
ICASA responds to IMT roadmap censure more
ConvergeNet to bow out of ICT more
Google to shut down free website service Woza more
Google SA 'drops' thousands of SMEs more
Vigo aims to pick up Woza Online SMEs more
R149 uncapped mobile data SIM launched more
R149 unlimited data SIM what happened behind the scenes
more
Beware R149 uncapped data SIM: MTN more
Pinnacle Africa releases Proline phone more
The Proline SP4 is a new R999 dual SIM Windows Phone more
Back to:
Other
27

Key Competitor Activities January 2015 - 03162000

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Key Competitor Activities January 2015 - 03162000

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This Month:

MTN launched a video-on-demand service, FrontRow