Vodacom CEO talks TV
Vodacom Group CEO, Shameel Joosub says there is an opportunity for the operator to unlock value by partnering with a pay-TV provider like DStv.
His comments come at a time when Vodacom is being squeezed in its more traditional areas of operation amid increased competition in the mobile space in South Africa.
In a recent interview on CNBC Africa, Vodacom’s lead executive was questioned whether partnering with a DStv type television service provider was a part of Vodacom’s short-term thinking.
“Where we are from a short term thinking perspective, is making sure we build the networks that can carry it (content), so that we have the best video experience, the best data experience. At the same time that presents you with an opportunity because you have the customer base,” Joosub said.
“Having a portal with different TV stations, basically having their product available and… providing the connectivity and the billing mechanism and so on to customers, I think could be very beneficial.
“I’d say there is an opportunity to unlock the value both from a presenting of content perspective, and that could mean partnering with existing players that are out there, and maybe introducing some new ones into the market. At the same time making sure there is a clear network advantage,” the chief executive said.
Joosub noted that 66% of Vodacom’s network is already on fibre or high transmission. “Our ability to switch on or utilise 4G or transmission, and to really take broadband into every home is very much achievable in the short term,” he said.
In 10 years, Joosub said he hoped to see the group in many more African operations. “A fully unified telecommunications company, and a very big player in data,” he said.
Vodacom’s parent company, Vodafone is currently involved in a deal to buy Kabel Deutschland, Germany’s biggest cable company. Last month Kabel’s board advised shareholders to accept a $10.2 billion offer.
According to Bloomberg, Kabel is a key part of Vodafone’s plan to expand outside of wireless service. Vodafone said recently that it will reorganize by combining its northern and southern European units to make it easier to sell packages of phone, Internet and television across the continent.
Vodacom has already tried a venture into the television sector. In 2007, the operator launched DStv Select. In 2011, however, MultiChoice took over the running of the DStv Select bouquets, previously administered by Vodacom.
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