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SENS Releases 2006

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  1. Telkom SA Limited
  2. (Registration Number 1991/005476/06)
  3. ISIN ZAE000044897
  4. JSE and NYSE Share Code TKG
  5. ("Telkom")

 

Vodacom Group surpasses 21 million customer mark

Vodacom Group (Proprietary) Limited ("Vodacom" or "Vodacom Group") (unlisted), South Africa's leading mobile communications group, in which Telkom has a 50.0% holding, today announced a quarterly update for the three months ended December 31, 2005.

As at December 31, 2005, Vodacom Group recorded 21.5 million customers across its networks operating in South Africa, Tanzania, the Democratic Republic of the Congo, Mozambique and Lesotho, reflecting a 12.4% increase in the three months since September 30, 2005. The rapid growth in the customer base is a result of high gross customer connections of 3.4 million, combined with low churn for the quarter. The Group's international operations comprised 3.9 million customers, or 18.1% of the total customer base.

Vodacom South Africa increased its customer base by a healthy 11.6% since September 30, 2005 to 17.6 million customers in an increasingly competitive market. Vodacom South Africa's customer base comprises 2.3 million contract customers and 15.3 million prepaid customers, reflecting increases of 7.7% and 12.2% since September 30, 2005, respectively. South African ARPU declined to R144 per month for the nine months to December 31, 2005, compared to R147 per month for the six months which ended September 30, 2005.

Vodacom South Africa was the first operator to introduce a commercial 3G offering into the local market a year ago. The take up by customers continues to be encouraging, with the number of 3G Vodafone Mobile Connect data cards on the network as at December 31, 2005 at 26.6 thousand (September 30, 2005: 18.7 thousand). The number of 3G base stations has increased to 1,460 (September 30, 2005: 1,122).

Vodacom South Africa customers, 3-month inactive customer statistics, and year-to-date ARPU and churn as at December 31, 2005 compared to September 30, 2005 are as follows :

Vodacom South Africa September 30, 2005 December 31, 2005 % change
Customers (thousands) 15,773 17,600 11.6
Contract 2,092 2,254 7.7
Prepaid 13,653 15,316 12.2
Community services telephones 28 30 7.1
ARPU (ZAR) 147 144 (2.0)
Contract 588 581 (1.2)
Prepaid 71 65 (8.5)
Community services telephones 1,960 1,868 (4.7)
3-month inactive customers as % of total customers 7.9 7.5 (0.4 pts)
Contract 1.8 1.8 -
Prepaid 8.9 8.4 (0.5 pts)
Churn (%) 17.4 18.1 0.7 pts
Contract 9.3 9.2 (0.1 pts)
Prepaid 18.7 19.5 0.8 pts


Vodacom's other African operations increased their total customer base by 16.3% since September 30, 2005 to 3.9 million customers. Satisfactory customer growth was achieved in all Vodacom's other African operations, most notably Mozambique with a 30.4% increase in its customer base

Vodacom's other African operations' customers, year-to-date ARPU and churn as at December 31, 2005 compared to September 30, 2005 are as follows:

Other African Operations September 30, 2005 December 31, 2005 % change
Vodacom Tanzania
Customers (thousands) 1,606 1,859 15.8
Contract 6 7 16.7
Prepaid 1,597 1,849 15.8
Public phones 3 3
ARPU (ZAR) 73 71 (2.7)
Churn (%) 28.7 28.4 (0.3 pts)
Other African Operations (continued) September 30, 2005 December 31, 2005 % change
Vodacom Lesotho
Customers (thousands) 171 190 11.3
Contract 3 3 -
Prepaid 166 185 11.4
Public phones 2 2 -
ARPU (ZAR) 77 78 1.3
Churn (%) 23.4 23.3 (0.1 pts)
Vodacom Congo
Customers (thousands) 1,236 1,408 13.9
Contract 11 12 9.1
Prepaid 1,209 1,379 14.1
Public phones 16 17 6.3
ARPU (ZAR) 89 90 1.1
Churn (%) 30.5 28.4 (2.1 pts)
Vodacom Mozambique
Customers (thousands) 336 438 30.4
Contract 5 6 20.0
Prepaid 331 432 30.5
ARPU (ZAR) 41 40 (2.4)
Churn (%) 34.5 33.0 (1.5 pts)

Johannesburg
24 January 2006

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