A Case Study: Vodacom Group and Redknee

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1 A Case Study: Vodacom Group and Redknee Driving Growth in the Roaming Market and Improving the Customer Experience Summary > How Redknee enabled Vodacom to address the increasing market competition and improve the customer experience, by supporting the launch of the Vodafone Passport international roaming solution on the Vodacom Group network in South Africa. About Vodacom Group > Vodacom is one of the largest pan-african mobile communications company and the leading mobile network in South Africa with over 58 per cent share of the market.

2 Collectively owned by the South African telecommunications group Telkom and the British mobile phone operator Vodafone, who is the majority shareholder, Vodacom provides GSM, 3G, UMTS, HSDPA, WiMAX and LTE coverage to more than 56 million customers across South Africa and its international markets including Tanzania, Lesotho, Mozambique and the Democratic Republic of Congo (DRC). Vodacom s strategy is to operate more efficiently, achieve long-term revenue growth and to do more to improve the customer experience. Challenge > South Africa is a highly competitive market in which to operate, with strong price pressures, increasing customer churn and a number of mobile operators rivaling for market share. To maintain its market leading position and to deliver on its strategic goals, Vodacom needed to provide innovative services and offerings with cost controls, simplified pricing structures and price sensitivity for subscribers to easily adopt. Vodacom needed to provide a differentiated service and announced that it was going to launch the Vodafone Passport international roaming solution on the Vodacom Group network. To support its growth and profitability, Vodacom required a solution that would enable it to monetize its international roaming offering through flexible billing, charging and rating and would enable the service provider to generate new revenue streams, increase profitability and improve the customer experience. The initial phase of the Vodafone Passport international roaming rollout commenced with the regional flagship operator, Vodacom South Africa and its neighbor Vodacom Lesotho. Whilst Vodafone Passport is not a new service it is effectively available in more than 40 countries worldwide the initiation in South Africa would enable Vodacom South Africa and Vodacom Lesotho to respond to the market challenges, launch new offers and promotions quickly and provide an improved customer service.

3 Solution > To address the increasing market competition and to improve the customer experience, Vodacom leveraged Redknee s real-time convergent online charging, rating and invoice system with policy controls. Redknee s solution is enabling Vodacom South Africa and Vodacom Lesotho to provide their subscribers with the ability to utilize their local call rate plans when they are roaming across 127 partnering networks in 64 countries. Redknee Unified enables Tier 1 service providers to maximize the value of their network with differentiated cost controls, selected tariff options and flexible services to deliver an enhanced subscriber experience. Redknee s market-leading next-generation solution provides Vodacom with a truly convergent real-time billing, charging and rating platform that offers the flexibility and scalability to advance the subscribers experience through innovative services, real-time notifications and customer self-care options. Redknee s solution is enabling Tier 1 service providers to improve operational efficiency, reduce costs and build competitive advantage. Result > As an acquired customer from Redknee s recent acquisition of Nokia Siemens Networks (NSN) Business Support System (BSS) division, the migration to Redknee s latest online unified charging system (OCS) proved to be a complete success. Vodacom selected the Redknee Unified platform primarily for its pre-paid subscribers. The solution provides a single convergent online charging solution, which will help Vodacom address the challenges associated with international pricing and roaming tariffs. The Redknee Unified solution is enabling Vodacom to increase its market share Vodacom recently reported 40.7 percent data revenue growth across the group. With Redknee s solution, Vodacom is able to simplify the management and control of its international roaming offering and significantly reduced the cost for subscribers to make and receive calls and to predict the cost of each call. Redknee s solution has provided Vodacom with the ability to improve the customer experience and add value by introducing new tariff

4 options and price plans, which has effectively increased adoption and allowed Vodacom to reduce the pre-paid average price per minute for voice calls by over 25 percent and decrease the price for data usage per megabyte by 16.2 percent. The solution s modular design and limited need for customization will allow Vodacom to extend its Vodafone Passport offering to its post-paid subscribers and to provide new channels to reach the un-serviced population, effectively creating new hybrid market segments. This will enable Vodacom to continue to build on its market position and achieve its growth goals. Part of Redknee s comprehensive portfolio of billing, charging, customer care and policy solutions for communications service providers, Redknee Unified expertly addresses the specific needs of today s Tier 1 service providers to deliver real-time, unified charging, rating and billing capabilities quickly and cost-effectively, to generate new revenue streams, increase profitability and improve the customer experience. In the future, Vodacom plans to utilize Redknee s solution to launch prepaid LTE services to its customers. Quick Facts Operator: Vodacom South Africa Number of Subscribers: 56 million Redknee customer: Strategic relationship since 1996 Redknee Solution: Redknee Unified online charging system (OCS) Results: Redknee s Unified solution enabled: Vodacom to address the challenges associated with international pricing and roaming tariffs with new tariffs and pricing plans Simplified management and control of Vodacom s international roaming offering and to significantly reduced the cost for its subscribers to make and receive calls The ability to extend its Vodafone Passport offering to its post-paid subscribers and to provide new channels to reach the un-serviced population Vodacom to build on its market position and achieve its growth goals For more information about Redknee s real-time monetization software, contact

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