Voice is saturated and flattening, data is biggest thing, says Vodacom

"Our business has been looking into an internet-based direction, and this is a deliberate strategy to go to the next level," Enzo Scarcella, Vodacom SA managing executive for marketing said, speaking yesterday at the headquarters of Draftfcb in Sandton, Johannesburg.

"Believe me, data is the biggest thing and the next wave. And in a country such as ours where DSL penetration is absolutely low, mobile broadband is the way to go. We are investing a lot of resources in data, in the hope that the cost of data will go down and that internet penetration will go up."

Scarcella, who revealed that Vodacom has seen 40% growth in data, said the appetite for data is there, adding that its cost is set to considerably decrease as Seacom becomes viable by the end of the year.

"Don't underestimate the power of a mobile device as people connect in different ways, and once you start consuming the internet there is no going back," he pointed out.

Vodacom, which spent a massive R200 million to rebrand and turn from blue to red, has become the subject of intense criticism and gossip in various quarters, and was locked in the mother of battles with rival Cell C over the 'Red Revolution'.

But the company said it will not respond to any of the criticism or throw jabs at Cell C, for fear that it will be distracted from its vision and current destination.

Clear vision ahead

Vodacom said it has a clear vision of where it is going and it has a compelling story to tell - the story of multiple possibilities.

Scarcella said his company has got a job to do externally, which consists of moving from a South African focus to a youthful, globally aligned African band. In an internal point of view, the company said it wants to develop a new culture that changes and drives behaviour.

"Our initial decision was that Vodacom become a gateway for Vodaphone in Africa, and we had to convince minority shareholders that there was an upside to rebrand because rebranding is always an expensive exercise," he said.

"The competitive market has changed. MTN, Cell C, 8ta, all of them are trying to connect customers in a different way. And our brand has also been fragmented," Scarcella said, explaining the fundamental reasons why Vodacom decided to rebrand and acquire a new identity.

"We have been criticised and some said 'you have changed from blue to red, so what?' Is it for leadership, dominance, size or influence? But I have to say that today freedom is a reality and more connections mean more life.

"We want to enable more possibilities, more influence, more growth and more giving. Connecting people equals to changing lives."

Scarcella admitted that the decision to rebrand was also driven by the fact that Vodacom's parent company, Vodaphone, is listed among the top 10 brands in the world, valued at US$44.4 million.

"We knew that the decision to migrate the brand was a risky one."