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* Might offload more capacity to data-only Rain network
* Balance sheet is well managed, company says
* Short-term debt, no repayments due in 12 months
(Adds details)
By Nqobile Dludla
JOHANNESBURG, April 16 (Reuters) - South Africa's mobile
phone network operator Vodacom said on Thursday that
data traffic on its network has jumped 40% since a nationwide
lockdown began as people work from home to curb the spread of
the coronavirus.
The telecoms sector has experienced a spike in network data
traffic in recent weeks after the South African government
imposed a five-week lockdown to the end of April.
Vodacom said that if necessary it would offload more
capacity to the Rain network in terms of its existing 4G roaming
agreement with the private mobile data-only network provider.
On Tuesday Vodacom said it will spend more than 500 million
rand ($27 million) over two months to increase network capacity
and is waiting for its application for temporary additional
spectrum to be approved by the telecoms regulator.
"We are expecting this trend to continue in the short to
medium term as more customers work from home and people using
technology to remain connected, educated and entertained," the
company said in a statement.
Rival MTN Group, the largest telecoms operator by
subscribers, has seen a 30% increase in data traffic and is
reprioritising its 28.5 billion rand capital expenditure towards
adding network capacity and has approved $250 million towards
building network equipments across the group.
Vodacom said that while it expects a short-term increase in
demand for its services, "medium-term economic downturn is not
good for any business."
South Africa's central bank sees the economy contracting
6.1% in 2020 as non-essential businesses remain shut for longer
and financially constrained households spend less.
Vodacom, majority-owned by Britain's Vodafone said
its balance sheet remains "well managed" with no significant
debt repayments due in the next 12 months.
Short-term debt was refinanced during the financial year
ended March 2020 and repayment periods were extended.
"The company continues to monitor its debt exposure between
fixed and variable rates, to ensure a balanced portfolio in an
uncertain and volatile environment," it said.
"In order to ensure that short-term liquidity can be met and
volatility absorbed, existing committed facilities with banks
have been doubled by converting shadow facilities to committed
facilities resulting in a total of 8 billion rand committed
facilities."
The telecoms operator, which partly owns Kenya's top mobile
network operator Safaricom, said to date it had not
experienced significant device and hardware supply disruptions
but where possible it had stockpiled some critical network and
device "elements".
($1 = 18.6636 rand)
(Reporting by Nqobile Dludla; Editing by Susan Fenton and David
Evans)
