Vodacom to up contract prices to boost revenue

The wireless carrier is trying to reduce costs and is exploring the possibility of sharing infrastructure on the continent with competitors Millicom International Cellular SA and Bharti Airtel Ltd.
The wireless carrier is trying to reduce costs and is exploring the possibility of sharing infrastructure on the continent with competitors Millicom International Cellular SA and Bharti Airtel Ltd.

By Chris Spillane

(Bloomberg) — Vodacom Group Ltd., South Africa’s largest wireless operator by subscribers, will raise the price of most of its subscription contracts from May as it seeks to revive sales amid slower economic growth.

The unit of Newbury, England-based Vodafone Group Plc will raise the cost of five contract-price plans, including an increase of as much as 10 percent on one of its mobile-broadband packages, Johannesburg-based Vodacom said in a statement on Thursday. Sales in South Africa declined 3.1 percent to 16 billion rand ($1.3 billion) in the three months through December.

Vodacom has been investing in fuel as the continent’s most- industrialized nation struggles with power outages, while South Africa’s communications regulator halved the fees it can charge rivals for using its network. The shares were down 1.4 percent to 132 rand as of 12:08 p.m. in Johannesburg, paring the year’s gain to 2.8 percent.

The wireless carrier is trying to reduce costs and is exploring the possibility of sharing infrastructure on the continent with competitors Millicom International Cellular SA and Bharti Airtel Ltd., a person familiar with the matter said earlier this month.

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