Vodacom and MTN data usage jumps 30%+ as people stay at home

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The telecoms sector has experienced a spike in network data traffic in recent weeks after the South African government imposed a five-week lockdown to the end of April.

Vodacom said that if necessary it would offload more capacity to the Rain network in terms of its existing 4G roaming agreement with the private mobile data-only network provider. On Tuesday Vodacom said it will spend more than R500-million rand over two months to increase network capacity and is waiting for its application for temporary additional spectrum to be approved by the telecoms regulator.

 

"We are expecting this trend to continue in the short to medium term as more customers work from home and people using technology to remain connected, educated and entertained," the company said in a statement. Rival MTN Group, the largest telecoms operator by subscribers, has seen a 30-percent increase in data traffic and is reprioritising its R28.5-billion capital expenditure towards adding network capacity and has approved $250-million towards building network equipment across the group.

 

Vodacom said that while it expects a short-term increase in demand for its services, "medium-term economic downturn is not good for any business." South Africa's central bank sees the economy contracting 6.1-percent in 2020 as non-essential businesses remain shut for longer and financially constrained households spend less.

 

Vodacom, majority owned by Britain's Vodafone said its balance sheet remains "well managed" with no significant debt repayments due in the next 12 months.

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