Vodacom Group Limited is a South African mobile communications company, providing voice, messaging, data and converged services to over 130 million customers across Africa. From its roots in South Africa, Vodacom has grown its operations to include networks in Tanzania, the Democratic Republic of the Congo, Mozambique, and Lesotho, and provides business services to customers in over 32 African countries, including Nigeria, Zambia, Angola, Kenya, Ghana, Côte d'Ivoire, and Cameroon.
History
It was owned in a 50/50 partnership by the South African telecommunications giant Telkom and British multinational operator Vodafone. On 6 November 2008, Vodafone announced that it had agreed to increase its stake to 64.5%, and Telkom said that it would spin off its remaining holding by listing it on the Johannesburg Stock Exchange (JSE). On 1 April 2011, Vodacom officially unveiled its new change in branding from blue to red, using the same style as its parent company, Vodafone.
Vodacom provides coverage to Mount Kilimanjaro, which was the highest point in the world to be covered by GSM, until Axiata (through its subsidiary Ncell) provided coverage at the top of Mount Everest, the highest point in the world. Vodacom was aided by its optimistic advertisements at the early stages of the democratic South Africa, including the yebo gogo campaign which is still in effect today in Africa. Vodacom is the leading cellular network in South Africa with a market share of over 40% and more than 45 million users. The company has an estimated market share of 58% and more than 103 million customers across Africa.
Technology
Vodacom South Africa provides 3G, 4G, and UMTS networks in South Africa, and also offers HSPA+ (21.1 Mbit/s), HSUPA (42 Mbit/s, 2100 MHz), Wi-Fi, WiMAX, and LTE services. Vodacom was the first cellular provider to introduce LTE in South Africa. On 21 October 2015, Vodacom launched its fibre product to the home user. On 7 April 2017, Vodacom's 4G+ network in Brooklyn Mall, Pretoria achieved 240 Mbit/s in a speed test. In early 2020 Vodacom also became the second network operator in Africa to launch a live 5G network, initially available in Johannesburg, Pretoria and Cape Town.
Sports sponsorships
Vodacom is a sponsor of many South African sports.
In provincial rugby union, they are the sponsors of the Pretoria-based Vodacom Blue Bulls and own the naming rights to the union's home stadium, Loftus Versfeld.
As part of their rugby union sponsorship portfolio, Vodacom has been the title sponsor of the Super Rugby tournament in South Africa since 1996.
In football, they sponsor two clubs in the Premier Soccer League: the Kaizer Chiefs and Orlando Pirates. They also sponsor the South African Football Association and the national teams Bafana Bafana (men), Amajita (under 20s), and previously Banyana Banyana (women). However, competitor MTN was one of the sponsors of the 2010 FIFA World Cup held in South Africa.
Past sponsorships include the national rugby union team, the Springboks, from 1994 to 2017, and the South African Shelby Can-Am series between 2000 and 2005.
Controversies
JSE listing
On May 17, 2009, a court dismissed a joint Congress of South African Trade Unions (COSATU) and ICASA application to stop Vodacom's JSE listing. Chegoane Mabelane, the South African article writer and prominent supporter of both African National Congress (ANC) and its alliance; in one of his articles stated that the interdict to stop the listing was fair.
In January 2010, the Sunday Times alleged that Alan Knott-Craig (Senior), former Vodacom CEO, helped his son, Alan Knott-Craig with business ventures using Vodacom's resources. He also allegedly awarded a multimillion-rand contract to a marketing and advertising company run by his family members.
"Please Call Me" In 2008, former employee Nkosana Makate took Vodacom to court, claiming that the profitable "Please Call Me" message service was originally his invention and demanding compensation. Eight years later, Makate eventually won his case in the Constitutional Court. Makate then entered negotiations with Vodacom for a 15% cut of the R70 billion ($ billion) he claims "Please Call Me" has earned for Vodacom since its inception.