Vodacom South Africa has set its sights on three new growth pillars, and just one is directly related to mobile communications.
In the 2016 financial year Vodacom experienced a 20.7% growth from IoT connections and now has 2.2 million SIMs in “machines or things” that are not mobile phones. Commenting on the potential that Vodacom sees in IoT, CEO Shameel Joosub said, “I think we are going to be surprised at the level of innovation that will come into play in the IoT space.”
Vodacom’s offerings of device insurance and funeral policies, among others, are also turning out to be a lucrative market – insurance revenue was up by nearly 19% to R524 million in the 2016 financial year.
Although the uptake in Vodacom’s fibre services has been relatively slow, Joosub said that fibre is still key to Vodacom’s future. The company has invested R500 million to date in both FTTB and FTTH.
Joosub emphasised, however, that mobile will take precedence at all times, “Our first priority is mobile, so we will always put the money there first to cope with growth and ensure customers get an exceptional offering from us.”