vodacoms presentation to the parliamentary portfolio committee consumer issues 5 november 2002
TRANSCRIPT
VODACOM’S
PRESENTATION
TO THE
PARLIAMENTARY PORTFOLIO COMMITTEE
CONSUMER ISSUES5 NOVEMBER 2002
INTRODUCTION
Vodacom thanks Parliament The CONSUMER is the most
important part of our business!
OUTLINE
Customer Focus Critical success factors
Network - Coverage, Capacity and Quality
Products and Tariffs Customer Care
CUSTOMER FOCUS
LICENCE REQUIREMENTS:Network - Coverage, Capacity, QualityProducts and TariffsCustomer Care
Vodacom has met all requirementsand
Reports to ICASA bi-annually
CUSTOMER FOCUS
Vodacom is also committed to democratise telecommunications in South Africa!
CUSTOMER FOCUS
Democratisation is succeeding 12 million cellular subscribers in only 8
years Gross Connections per annum exceed 3m Vodacom subscriber base – 7,3m
customers 100m min/month Community Services
Vodacom Subscriber Growth from Sept 2000 to Sept 2002
3,900,000
4,300,000
4,700,000
5,100,000
5,500,000
5,900,000
6,300,000
6,700,000
7,100,000
7,500,000
Month
Num
ber
of S
ubsc
riber
s
Cell C Market entry
NETWORK
Coverage, Capacity and Quality
NETWORK Technical Licence Requirements
LICENCE REQUIREMENT
VODACOM ACTUAL PERFORMANCE
Geographical Coverage
No percentage specified
64,6% of RSA
Population Coverage
70% of population by 1998
94% of population currently
Service Availability
95% Service Availability in 90% of actual area of coverage
99,5% Service Availability in 100% of coverage area
Grade of Service
Best endeavours 2% Grade of Service
Average Grade of Service over a month period <0,5%
NETWORK Factors affecting Quality of Service
• Currently the primary factors affecting quality of service are:
• Non-availability of 1800MHz spectrum
• Delays due to environmental impact assessment
and local authority approval (up to 3 years)
• Handsets
• Jamming Devices
• Transmission Failures
NETWORK 1800MHz Spectrum
• 1994 - 11 MHz 900 Mhz spectrum for
250 000 customers
• 2002 - still 11 MHz for 7,3 m customers–Plus Cell C Roaming traffic
NETWORK 1800MHz Spectrum
• 1800 Spectrum benefits
• Capacity and Quality of service in high traffic
areas will improve dramatically in the most cost
effective way
• Interference between cells will decrease,
dropped calls and call set-up failure will reduce
Original Original networknetwork
More More spectrumspectrum
More More cellscells
•• Capacity Capacity
•• Interference =Interference =
•• Cost Cost
•• Capacity Capacity
•• Interference Interference
•• Cost Cost
GSM 900GSM 900 GSM 900GSM 900 & & GSM 1800GSM 1800
?
NETWORK QUALITY TRADE-OFFS
NETWORK Handsets
• Rapid evolution of technology –pros and cons
• Vodacom Licence : ensure that only GSM handsets are connected
• Vodacom has heavily invested in testing equipment
• Only endorse phones that perform up to standard
NETWORK Handsets
• Phone performance varies from model to model, e.g. Some phone have very directional antennas which result in poorer RF performance
• Phone performance degrades with age and (ab)use, eg dropping phone
• Almost half of calls drops as a result of Handset problems / damage
NETWORK Handsets
• Grey phones are still filtering into RSA
• Vodacom recommend ‘scientific’ type approval by ICASA
• Type approval standards of GSM Certification Forum should be recognised
NETWORK Jamming Devices
Jamming prevents the use of cellphones in certain areas.
Transmit noise signals that interfere with the ability of cellphones to receive signals from mobile base stations.
Jamming is an illegal practice
Vodacom continuously improve an already high standard of service by extensive capital investment
in network
Net Profit After Tax vs Capex Additions
-
500
1,000
1,500
2,000
2,500
3,000
1998 1999 2000 2001 2002 2003
R'M
il
Profit After Tax Capex Additions
NETWORK Conclusion
Finally, Vodacom compares favourably with the best in the world
COMPARISON OF PERFORMANCE
PRODUCTS AND TARIFFS
PRODUCTS AND TARIFFS
CUSTOMERS ARE PROTECTED!Cellular tariffs are regulatedTariffs are lodged with ICASA
New tariffs Tariff increases Vodacom may not increase any tariff plan
by an amount greater than the % year on year increase in the CPI.
PRODUCTS AND TARIFFS
Vodacom has not fully utilised its right to increase by CPI E.g. Vodago pre-paid was launched in Nov 1996 @ R2.75 per minute
at all times Only peak tariff increased once to R2.85 per minute, whilst the off-
peak tariff was reduced by 44% to R1.55 per minute CPI increases would have been R4.11 per minute peak and off-
peak!!!
Twenty-one tariff plans designed to meet every need of the customer
Contract and Pre-paid tariff plans
A Contract Package without any monthly subscription – pay for usage only
Incoming call only tariff plan
High, Medium and Low usage tariff plans (bundled minutes)
Per minute or per second tariff plans
Freechange between pre-paid tariff plans once every 30 days
Tariff plans for specific usage preference - voice, sms or data
Tariff plans depending on peak or off-peak usage
Migration between contract tariff plans
Smartstep
Vodago
Frequent S
Frequent
BusinessBusiness S Talk 500 S
Talk 1000 STalk 120
Talk 100 S
Talk 200 S
Talk 240
Weekender
Weekender S
Family S
Messenger
4U Contract
4U Prepaid
Customers across all tariff PlansCustomers across all tariff Plans
PRODUCTS AND TARIFFS
VODACOM’s COMMUNITY SERVICE Original licence bid approved 99c/min Outgoing calls less than 70c/min for 8 years despite CPI
increase of more than 50%. 100 million outgoing minutes p/month Only 22 000 phones More minutes than of total 6 million pre-paid customers
CUSTOMER CARE
CUSTOMER CARE
Vodacom’s licence provides for:
Publication of a “Code of Practice for Consumer Affairs and Guidelines and Procedures for Enquiries and Complaints” (see information pack for copy)
Bi-annual report on Customer Care statistics submitted to ICASA
CUSTOMER CARE
Customer Care is a Vodacom priority!
365 days a year; 24 hours a day4 state-of-the-art Call Centres 50+ different integrated systems One-stop solution: integration of Customer Care of Vodacom Network & Service Provider Co.1,000 full time staff
CUSTOMER CARE
Customer Care staff are:
Recruited according to country’s demographics, incl. physically disabled
Extensively trainedContinuously measuredRewarded in terms of incentive bonus scheme
CUSTOMER CARE
Quality of Service Matters:
Recording all call interactions
Evaluate 9700 calls monthly
CUSTOMER CARE
Sensitive to Customer’s needs:
Call agent interaction in Zulu, Xhosa, Sotho, English, AfrikaansListen to and implement Customer suggestions
CUSTOMER CARE
Walk-In Customer Care Centre
Open 7 days a week!
Vodacom strives for excellence and will continually
improve its Customer Care
Our commitment to the Customer
THANK YOU