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South Africa : VODACOM announces drop in service revenue due to new mobile termination rates

July 25, 2014

Thanks to new mobile terminations rates, which halved the price the mobile operator can charge its customers for carrying calls from other networks, South Africa's major wireless carrier Vodacom (VOD) has announced a drop in service revenue from its local operations in Q1.

The company said service revenue from South Africa stood at R11.442m for the June quarter, a drop of 2% from the earlier comparable period.

It added that service revenue rose 2%, excluding the impact of mobile termination rates.

Group CEO of Vodacom, Shameel Joosub, said : "In South Africa we executed well operationally and grew our customer base, but revenue was impacted by the dramatic decrease in mobile termination rates."

Vodacom said its global business raised service revenue by 17.3% during the period.

Mobile data revenue, which includes M-Pesa, the mobile phone based money transfer service, grew 51.1%.

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Source: TendersInfo (India)

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