Vodacom commits about R800m to expansion of its KZN network
• This undertaking includes new network sites, modernising its mobile networks and a full fibre broadband rollout
Vodacom has committed to spending more than R800m in the year ending March 2025 in KwaZulu-Natal building new network sites, modernising its mobile networks, a full fibre broadband rollout and energy projects to push up broadband connectivity and service in the region.
As with the mobile provider’s plans in areas such as Limpopo and the Eastern Cape, part of the mission is for this capital expenditure to expand connectivity in deep rural areas that have never had connectivity.
Rural internet connectivity in areas outside large centres such as Johannesburg, Cape Town and Durban remains a sore point in SA.
The bulk of the funds will be used to improve radio access network, modernise the core the network infrastructure and deploying the latest and faster mobile networks such as LTE and 5G, the company said.
By the end of the financial year, Vodacom plans to increase its 3G population coverage in KwaZulu-Natal to 98.89%, 4G to 98.86% and 5G to 50%.
According to Vodacom’s KwaZulu-Natal region managing executive, Imran Khan, Vodacom is “making a significant investment in the network in KwaZulu-Natal in order to achieve our goal of building an inclusive digital society”.
“Importantly, we have set aside resources to roll out 130 new sites in deep rural areas in Ugu, Umhlabuyalingana, Abaqulusi and Edumbe local municipalities. It is no longer acceptable for deep rural residents to observe the digital revolution from the sidelines; they must participate in it and benefit from the associated socioeconomic benefits.”
In the 2024 financial year, the Vodafone subsidiary spent R20.4bn in capital expenditure. Of that, R11.1bn was spent in SA. Part of this cost is now being taken up by backup power systems to cope with the effects of load-shedding. Since 2020, the operator has spent more than R4bn addressing what it terms “energy resilience”.
For the current financial year, the group has committed to investing between 13% and 14.5% of its revenue on capital expenditure.
Rival MTN spent R10.1bn on capital expenditure projects in SA, excluding leases, in its last financial year. It expects to spend between R9.36bn and R10.14bn on such projects in the current financial year.
Vodacom said its business in KwaZulu-Natal enjoyed a 99.8% call set-up success rate and a 0.3% call drop rate, which could be attributed to increasing investment in network services.
“Our dedication to providing clients with a first-rate network experience is demonstrated by these results. We are making sure that our individual customers and businesses can benefit from connectivity no matter where they are with our reliable, wide coverage,” said Khan.
Outside KwaZulu-Natal, the group has been making similar investments in other provinces, putting down R400m in the Free State and Northern Cape and another R500m the Eastern Cape in this financial year.