Vodacom’s 450,000 SIM disconnections

 ·29 Jul 2013
Vodacom

Vodacom Group says that that the disconnection of 450,000 unregistered SIM cards on its network in Tanzania will have no material financial impact on its business.

The move is in compliance with the Electronic and Postal Communications Act (EPOCA) of 2010 which requires all mobile phone numbers in the country to be registered.

Rival operator Airtel Tanzania also switched off 200,000 unregistered lines in the country.

Vodacom Tanzania boasts 9.66 million customers, with an average revenue per user (ARPU) of R41.

“The vast majority were very low usage SIMs, so we’re not expecting a material financial impact,” The group told BusinessTech.

Vodacom Tanzania MD Rene Meza, said that the move is aimed at “both aligning with the above law and ensuring that our customers’ records are up to date”.

Vodacom Tanzania has also implemented SIM locking of all its cards, with activation of only possible after receipt of suitable registration documents from prospective customers.

The Tanzania Communications Regulatory Authority (TCRA) had given all operators a deadline of 1 June to lock new SIM cards and 10 July to block all unregistered customers from their networks.

Earlier this month, Helios Towers Africa (HTA) entered into an agreement with Vodacom Group to acquire 100% of the operator’s tower networks in Tanzania in a stock and cash deal.

The deal represents Vodacom Group’s first-ever towers transaction and is valued at  approximately $75 million (R736 million), according to the Financial Times.

The deal will see the transfer of 1,149 existing telecoms towers from Vodacom to HTT and a commitment to an ambitious, short-term rollout to increase in points of service owned by HTT – which more than doubles its existing presence in Tanzania.

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