08 September 2022

Vodacom will invest R1bn in its mobile network in the South African province of KwaZulu-Natal this year, deploying additional sites and upgrading the network to improve access to reliable connectivity and high-speed telecom services.

As part of this investment program, R444m will be invested in radio access network (RAN) projects, while R135m will be invested in regional network capacity and upgrades. R85m will be spent on improving network resiliency, optimisation and operations, while R17.5m will be forked out on core network infrastructure upgrades and related projects. Vodacom is investing heavily in backup power projects to overcome grid disruptions related to load shedding, battery theft and vandalism.

Furthermore, the telco plans to expand 4G capacity to 704 base station sites in the province this fiscal year and plans to add 61 new 5G sites to add to the 200 sites that already exist. Imran Khan, managing director, Vodacom KwaZulu-Natal, said the operator’s goal is “to expand the reach of coverage and capacity, so that all sectors of the economy, from agriculture to small businesses, can make extensive use of new technologies, such as the internet of things, to drive sustainable productivity”.

Meanwhile, Vodacom Group will keep full ownership of a new subsidiary that will take over its South African tower business, the telco said, whilst announcing a 5.2% rise in first-quarter revenue.

Shameel Joosub, chief executive officer (CEO) of the group, said formation of the telecommunications-tower company, is not yet complete.

The move follows that of several competitors in the country, with some having either formed tower businesses or sold them to specialist tower companies. It has helped raise cash for fast-growing services, such as fintech. Other operators have also retained equity in the tower companies.

According to the company’s latest annual report, Vodacom’s tower company will own more than 9,500 sites, including towers and rooftop.

Vodacom chief financial officer (CFO) Raisibe Morathi said this year the operator would be open to many options once the tower company had been separated, but “we don’t have any need to monetise. We’re not looking to do this to raise capital.”