Voice Is Going the Way of SMS, Says Vodacom CEO

Why It Matters

The shift signals a fundamental revenue transformation for telcos, forcing them to diversify beyond traditional voice to sustain growth and investor confidence.

Key Takeaways

• Voice now only 29% of Vodacom SA revenue, down from dominance
• Data and beyond‑mobile services contributed $1.6 bn, 22% of revenue
• Capitec Connect MVNO offers free on‑net calls, squeezing prepaid pricing
• Vodacom aims for 30% beyond‑mobile revenue share by 2030
• Cloud, fibre, and fintech growth outpace core mobile consumer business

Pulse Analysis

The erosion of voice revenue is not unique to Vodacom; it reflects a global telecom trend where data traffic eclipses circuit‑switched calls. Consumers increasingly favor internet‑based communication—WhatsApp, iMessage, and other VoIP platforms—turning voice into a commodity rather than a profit centre. This behavioural shift compresses average revenue per user (ARPU) on traditional voice plans, compelling operators worldwide to re‑engineer their business models around data bundles and digital services.

Vodacom’s strategic pivot to "beyond‑mobile" offerings illustrates how African carriers are adapting. In FY 2026 the segment delivered roughly R29.8 billion (about $1.6 billion), accounting for 22.3% of total service revenue, and the company targets a 30% share by 2030. Growth is being driven by fintech products, fibre roll‑outs, and cloud‑hosting services, which posted double‑digit increases. By monetising infrastructure and digital platforms, Vodacom aims to offset the structural voice decline and create higher‑margin revenue streams that are less vulnerable to price wars.

Competitive pressure adds urgency. MVNOs like Capitec Connect now provide free on‑net calls, eroding prepaid pricing power and forcing Vodacom to reprice its offers, a move that recently dented earnings. Coupled with a sluggish South African economy, the operator must accelerate data growth to compensate for voice loss. Investors are watching how effectively Vodacom can scale its non‑voice businesses, as success will determine whether the group can sustain profitability in a market where traditional voice is becoming a legacy service.