VODACOM

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VODACOMS PRESENTATION TO THE PARLIAMENTARY
PORTFOLIO COMMITTEE CONSUMER ISSUES 5 NOVEMBER
2002
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INTRODUCTION

• Vodacom thanks Parliament
• The CONSUMER is the most important part of our
  business!

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OUTLINE

• Customer Focus
• Critical success factors
• Network - Coverage, Capacity and Quality
• Products and Tariffs
• Customer Care

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CUSTOMER FOCUS

• LICENCE REQUIREMENTS
• Network - Coverage, Capacity, Quality
• Products and Tariffs
• Customer Care
• Vodacom has met all requirements
• and
• Reports to ICASA bi-annually

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CUSTOMER FOCUS

• Vodacom is also committed to democratise
  telecommunications in South Africa!

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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

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Cell C Market entry
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NETWORK

• Coverage, Capacity and Quality

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NETWORK Technical Licence Requirements

•  

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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

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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

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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

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NETWORK QUALITY TRADE-OFFS
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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

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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

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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

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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

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Vodacom continuously improve an already high
standard of service by extensive capital
investment in network
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NETWORK Conclusion

• Finally, Vodacom compares favourably with the
  best in the world

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COMPARISON OF PERFORMANCE
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PRODUCTS AND TARIFFS
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PRODUCTS AND TARIFFS

• CUSTOMERS ARE PROTECTED!
• Cellular tariffs are regulated
• Tariffs 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.

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PRODUCTS AND TARIFFS

• Vodacom has not fully utilised its right to
  increase by CPI
• E.g. Vodago pre-paid was launched in Nov 1996 _at_
  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!!!

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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
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Customers across all tariff Plans
Business
Talk 1000 S
Talk 100 S
Business S
Talk 500 S
Talk 120
Frequent
Talk 240
Frequent S
Talk 200 S
Weekender
Weekender S
Family S
Vodago
Messenger
4U Contract
Smartstep
4U Prepaid
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PRODUCTS AND TARIFFS

• VODACOMs 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

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CUSTOMER CARE
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CUSTOMER CARE

• Vodacoms 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

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CUSTOMER CARE

• Customer Care is a Vodacom priority!
• 365 days a year 24 hours a day
• 4 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

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CUSTOMER CARE

• Customer Care staff are
• Recruited according to countrys demographics,
  incl. physically disabled
• Extensively trained
• Continuously measured
• Rewarded in terms of incentive bonus scheme

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CUSTOMER CARE

• Quality of Service Matters
• Recording all call interactions
• Evaluate 9700 calls monthly

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CUSTOMER CARE

• Sensitive to Customers needs
• Call agent interaction in Zulu, Xhosa, Sotho,
  English, Afrikaans
• Listen to and implement Customer suggestions

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CUSTOMER CARE
Walk-In Customer Care Centre
Open 7 days a week!
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Our commitment to the Customer

• Vodacom strives for excellence and will
  continually improve its Customer Care

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THANK YOU