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Stakeholder

‘hot topics’

in 2018

Delivering social transformation

The issue:

South Africa, our largest market, has

some of the highest levels of inequality,

unemployment and poverty in the world. Given the

need to promote greater economic inclusion in the

country, the South African government has highlighted

its commitment to implement ‘radical economic

transformation’. In terms of the ICT sector, this is

reflected in key provisions of the National Integrated

ICT Policy White Paper and the Electronic

Communications Amendment Bill.
In our other

markets there is similar pressure from government,

regulators and consumers to further broaden access

to digital services.

Material stakeholder groups:

Government;

industry regulators; employees; business peers; and

customers.

Our response:

Our Vision 2020 includes a clear

commitment to removing barriers to digital access,

and to deliver the significant societal benefits

associated with improved connectivity. We are

committed to playing a transformative role in the

provision of financial services, education, healthcare

and agriculture, and to demonstrating leadership in

promoting BEE in South Africa. Our existing initiatives

to accelerate socioeconomic transformation include:

g

g

Our M-Pesa product that provides affordable access

to financial services to more than 32.3 million

(including Safaricom) customers, increasing savings,

reducing poverty and opening up valuable economic

opportunities;

g

g

Our substantial investment in extending networks

into rural areas across our countries of operation;

g

g

Promoting commercially viable mobile agricultural

solutions through our Connected Farmer platform,

and delivering measurable education and health

benefits through our mobile data initiatives;

g

g

Our Siyakha platform, offering zero-rated health,

education and career portals for low-income

consumers in South Africa;

g

g

Our investments in enterprise development,

preferential procurement, skills development and

employee diversity resulting in Vodacom

consistently being recognised for leading BEE

performance; and

g

g

A retail transformation strategy that encourages

greater ‘black’ ownership of our franchise channel.

Data costs

The issue:

The cost of accessing communications

services in general – and data in particular – remains a

prominent concern for consumers and policy makers.

Following the high-profile #datamustfall social media

campaign launched in South Africa in 2016, the

Competition Commission and ICASA have both

launched processes relating to the cost and nature of

data services.

Material stakeholder groups:

Customers;

government; industry regulators; and media.

Our response:

We recognise the imperative of

further lowering data prices, while not compromising

our ability to make the investments in network and IT

infrastructure needed to broaden and improve service

delivery. We have various initiatives in place to reduce

data costs and encourage customers to optimise their

bundles and data usage; these include:

g

g

Providing customers with bundles for varying periods

of validity at affordable pricing (down to 3c per MB

for a one-day, 1GB package);

g

g

Reducing our out-of-bundle rates by up to 50%;

g

g

Improving our in-bundle and out-of-bundle smart

notifications for customers in line with ICASA’s

recommendations, and launching a data refill service

to manage out-of-bundle pricing;

g

g

Running targeted consumer campaigns to increase

awareness on how to buy maximum-value bundles,

check balances and more efficiently manage data

usage; and

g

g

Making data more affordable through various

propositions that lower the cost barrier, such as

Facebook flex (a low data, free version of Facebook

without photos and video) and Siyakha (a platform

offering access to zero-rated career, education and

health websites).

16

Vodacom Group Limited

Integrated report for the year ended 31 March 2018