finweek

The telecoms industry’s data quandary

accreditation
Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!
Vodacom (Duncan Alfreds, News24)

Just a few years back, the growth in telecoms groups’ revenue, profits and share prices was rampant, and the pace was seemingly unstoppable. Today things don’t look as peachy, as they struggle to maintain growth momentum in a world of slowing voice revenue growth, falling data tariffs and squeezed margins.

Vodacom’s latest results, released on 16 May, sum up the problem. Demand for data continues to soar and data revenue growth is outstripping that of voice. But revenue from data is growing at a significantly slower rate than the increase in data traffic.

Vodacom’s experience mirrors that of its local and international peers. This is an industry-wide problem with no immediate solution, a challenge that could weigh heavily on telecoms earnings and share price growth for the foreseeable future.

Support independent journalism
Subscribe to News24 for just R75 per month to read all our investigative and in-depth journalism. You can cancel any time.
Subscribe
Already a subscriber? Sign in
Rand - Dollar
14.75
-1.0%
Rand - Pound
20.26
+0.1%
Rand - Euro
17.29
+0.2%
Rand - Aus dollar
10.72
+0.1%
Rand - Yen
0.13
+0.1%
Gold
1,754.62
0.0%
Silver
22.41
0.0%
Palladium
2,019.00
0.0%
Platinum
944.00
0.0%
Brent Crude
75.34
-0.4%
Top 40
56,605
-0.9%
All Share
62,864
-0.7%
Resource 10
56,497
-3.9%
Industrial 25
81,170
+1.0%
Financial 15
14,018
+0.5%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
What potential restrictions on unvaccinated South Africans may make the biggest difference to public health, the economy?
Please select an option Oops! Something went wrong, please try again later.
Results
Limited access to restaurants and bars
9% - 41 votes
Limited access to shopping centres
17% - 79 votes
Limited access to live events, including sport matches and festivals
28% - 129 votes
Workplace vaccine mandates
46% - 212 votes
Vote