Академический Документы
Профессиональный Документы
Культура Документы
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
C3 Vodacom Confidential
C3 Vodacom Confidential
20Mbps
40Mbps
100Mbps
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
Consumer Market
C3 Vodacom Confidential
September 14
November 14
Dec 14 January 15
October 14
* Promotions
BlackBerry Z3
Pay4Me
Steppa
FrontRow
Data Share
Cliq5 31/10
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
Enterprise Market
C3 Vodacom Confidential
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
Significance
more
more
Significance
Significance
C3 Vodacom Confidential
Competitor Activity
C3 Vodacom Confidential
Article links
Consumer
Products &
Services
Consumer
Broadband
Financial &
Operational
KPIs
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 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%.
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.
C3 Vodacom Confidential
10
Enterprise
Products &
Services
Financial
KPIs
Network
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.
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.
C3 Vodacom Confidential
11
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.
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 lodged an application with the high court to review the new MTRs
implemented last year.
C3 Vodacom Confidential
12
Adjacent Players
Consumer
Products &
Services
Consumer
Broadband
Enterprise
Products &
Services
Network
Article links
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.
C3 Vodacom Confidential
13
Adjacent Players
Other
Article links
C3 Vodacom Confidential
14
New
addition
to the
monthly
CI
C3 Vodacom Confidential
15
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
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
C3 Vodacom Confidential
16
C3 Vodacom Confidential
17
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
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
Vodacom Strategy & Research
C3 Vodacom Confidential
Back to highlights
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 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*.
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
C3 Vodacom Confidential
C3 Vodacom Confidential
20
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
Dec-14/Jan-15
BitCo, SANTC
OpenWeb
MTN
MTN, Telkom,
OpenWeb, iBurst
MTN, Telkom,
MultiChoice, MWEB,
Afrihost, Neotel
Telkom
Afrihost, MWEB,
Telkom
Telkom
MTN
Pricing
Telkom
MWEB, Cell C
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
Cell C
Loyalty/Rewards
Promotions
MTN
MTN, Cell C
MTN
Apps
Orange
Content
MTN
MTN
Commerce
Orange
MTN
Zapper
Standard Bank
Cell C
Nedbank
MTN, Cell C
VAS
Telkom
MTN, Telkom
Telkom
iBurst
Zwipit
Telkom Mobile
MTN
Pinnacle Africa
Product Cancellation
Hardware
BlackBerry
Cell C
Access the attached Word Document for further detail on the relevant activity for each competitor by month
Vodacom Strategy & Research
C3 Vodacom Confidential
21
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
MTN
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
Vodacom Strategy & Research
C3 Vodacom Confidential
22
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
Broadband Pricing/changes/enhancements
MTN
Pricing
Broadband Promotions
MTN
Loyalty/Rewards
Promotions
MTN
MTN
MTN
VAS
Content
MTN
MTN
Hardware
Mobile Money
MTN
MTN
MTN
Commerce
Enterprise
Managed Services
MTN
MTN
MTN
MTN
MTN
MTN
C3 Vodacom Confidential
23
Back to highlights
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
Broadband Pricing/changes/enhancements
Telkom
Telkom
Telkom
Telkom
Telkom
Pricing
Broadband Promotions
Telkom
Telkom
Telkom
Promotions
Telkom
Telkom
Telkom
Telkom
Dec-14/Jan-15
Consumer
Broadband
Telkom
VAS
Telkom
Hardware
Telkom
Enterprise
Broadband
Voice and Data
Telkom
Managed Services
Telkom
Telkom
Telkom
C3 Vodacom Confidential
Telkom
24
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
Broadband Pricing/changes/enhancements
Cell C
Pricing
Cell C
Cell C
Cell C
Cell C
Cell C
Cell C
Cell C
Cell C
Hardware
Promotions
Cell C
Cell C
Broadband Promotions
Cell C
Cell C
Enterprise
M&A/Investments
Network/Technology Improvements
Cell C
Cell C
C3 Vodacom Confidential
25
Article Links
C3 Vodacom Confidential
26
26
Reference information
MTN
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
Vodacom Strategy & Research
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
Key Competitor Activities January 2015
Back to:
Other
C3 Vodacom Confidential
27