What Does Vodacom's Future Hold?

May 2006 | Market Trend Analysis

South African mobile operator Vodacom could be stripped of its market lead position if it does not expand its operations further afield than its domestic market. The operator is in danger of seeing its double-digit growth slip to single digit growth as the country's mobile market nears saturation, expected to reach 78% by end-2006 by BMI forecasts and 90% in three years time. At present, Vodacom has enjoyed mass growth, with Q305 showing net additions of 1.538mn users, against MTN with just 96,000 net additions. Moreover, Vodacom reported domestic revenues of ZAR14.76bn, up by 32.3% y-o-y over the same period,

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