South African mobile networks announce their top accomplishments in 2022

Among the most noteworthy events in the South African mobile network business in 2022 were the first-ever high-demand frequency spectrum auction, a squabble over Telkom, and a crucial step toward Cell C’s rescue.

While mobile networks were not immune to the pandemic’s harmful effects, the telecommunications sector benefited greatly from the increasing demand for connection in 2020 and 2021.

The year 2022 saw a return to more normal socioeconomic conditions, lowering the demand for cellular communication services.

Rising inflation has also weighed on consumer spending on mobile devices.

These considerations included the financial success of mobile networks, especially near the conclusion of the year.

Nonetheless, the country’s five largest mobile networks — Vodacom, MTN, Telkom, Cell C, and Rain — introduced new products and enhanced their contributions to the country in some form.

We asked them what they see as their most significant accomplishments and difficulties in 2022. Here’s what the networks had to say about it.

Vodacom

According to a Vodacom spokeswoman, the operator’s acquisition of radio frequency spectrum at Icasa’s auction was one of its most significant accomplishments.

It plans to use the spectrum to increase network coverage, speeds, and quality as it accelerates its 5G deployment.

In terms of specific goods, Vodacom announced the launch of Home Internet bundles aimed at providing users with a “fibre-like” experience at home, particularly in underdeveloped regions.

In addition, it will launch a National Relay Service (NRS) in 2022, boosting its options for deaf, hearing-, and speech-impaired users.

The National Relay Service (NRS) enables prepaid and postpaid clients who are deaf and use South African Sign Language (SASL), are hearing-impaired, or have speech challenges to call any hearing person via professionally trained Relay Officers.

These officials serve as the call’s core connection, facilitating communication between the NRS user and the called party.

Furthermore, Vodacom created the Get-a-Gig platform, with the goal of connecting 1 million young people to jobs or gig opportunities by 2024.

It is available through ConnectU and links jobseekers to opportunities inside Vodacom and its external partners.

Load-shedding was Vodacom’s main operational difficulty in 2022, and it paid billions to keep its network operating during these disruptions.

“For the six months ended 30 September 2022, we invested a record R5.8 billion in our network — the most in a six-month period — to further enhance the customer experience at a time when the country experienced record levels of power outages,” they stated.

Vodacom has reached an in-principle agreement with Eskom to launch a scheme in which its South African businesses will source all of their electricity from renewable independent power producers as part of its attempts to decrease its carbon impact.

Excess electricity will be sent into the national grid as well.

MTN

Jacqui O’Sullivan, MTN South Africa’s executive for corporate affairs and sustainability, stated that the operator achieved tremendous achievements in network investment and product innovation in 2022.

During the year, the corporation invested approximately R6 billion in South Africa on network modernization.

It also became the country’s first mobile network to surpass 1,000 5G sites.

MTN has grown this to over 1,400 places by the time of publishing, including all major metros and numerous smaller villages.

O’Sullivan stated that MTN offered more economical data packages targeted at bridging the digital gap and lowering the cost of communication.

“These include the launch of MTN New Bonus which guarantees new and existing customers double value,” she said.

MTN also made significant investments in its load-shedding backup system, installing new batteries in 3,323 base stations.

O’Sullivan also mentioned the following accomplishments:

• Securing radio frequency spectrum during Icasa’s auction.
• Getting named South Africa’s most admired brand by Brand Finance 2022.
• Named Best Mobile Network in MyBroadband’s Network Quality Reports throughout 2022.
• MTN Pulse youth portfolio reaching 2 million subscribers in August.
• MTN Foundation investing R28 million with a focus on digitisation of education, skills development, developing entrepreneurs, along with project support specifically focused on women and the youth in Information and communications technology (ICT).
• Achieving the #1 Net Promoter Score among telecoms.

Telkom

Telkom stated that the results of the spectrum auction would account for a large portion of its 2022 success.

“Telkom’s total spectrum portfolio now stands at 184MHz across all bands. Despite our reservations about the spectrum auction, 2022 has been a milestone year,” the company said.

Telkom announced the acquisition of significant sub-1GHz spectrum.

“Not only was this an achievement in itself, but we successfully migrated the spectrum from temporary frequencies that were assigned under the state of disaster to the newly assigned frequencies,” Telkom said.

In addition, the operator added 22MHz of 3.5GHz spectrum to its current 28MHz.

“This is important because, for 5G, we need one contiguous spectrum for efficient deployment of the spectrum,” Telkom said.

Telkom debuted its 5G network in November 2022, with over 190 locations operational at the time of publishing.

“We have 136 active 5G sites in Gauteng, Western Cape, Eastern Cape and KwaZulu-Natal, and this is just the beginning,” Telkom said.

The operator also cited the formation of the Economic Sabotage of Critical Infrastructure (ESCI) forum, which included Eskom, Transnet, and Prasa, as a significant milestone.

The effort attempts to counteract damage to and theft of key infrastructure, such as copper wires, with annual direct costs estimated to be more than R7 billion.

Telkom also received a “Excellent” rating at the EY Excellence in Integrated Reporting Awards for 2022, as well as the title of “Coolest Telecommunications Provider” at the Sunday Times GenNEXT awards.

Cell C

Cell C has finally concluded a long-awaited recapitalisation transaction in order to reduce its debt and return the ailing operator to profitability.

“The recapitalisation was the final pillar in Cell C’s turnaround strategy and serves as the enabler for the business to execute on its new operating model,” the company explained.

“The recapitalisation transaction was complex and took considerable time to finalise, owing to the complexity of the transaction and the stringent steps that were necessary for the business to ready itself to become a business that is fit-for-purpose and sustainable.”

Another cost-cutting programme, Cell C, has made headway in decommissioning its own radio network equipment.

To offer countrywide and “like-for-like” network coverage, the operator will instead rely on “extensive” network arrangements with Vodacom and MTN.

Finally, Cell C stated that its newly hired CEO, Lerato Pule, will assist in charting a new route for Cell C to become a digital lifestyle firm.

Cell C also obtained spectrum at the March auction.

Rain 

Rain stated that one of its most major accomplishments was purchasing frequency spectrum in the 700 MHz and 2,600 MHz bands in order to strengthen its network.

The country’s newest mobile network provider has also expanded its 5G network to include over 7 million households.

Finally, Rain said that it was happy to be an official partner of the Rugby World Cup Sevens.