Vodacom Permit Dispute Threatens to Disconnect Congo Clients
- Company has until end of May to renew 2G license: ministry
- Congo unit accounted for about 6% of total revenue in 2018
An employee passes a Vodacom Group Ltd. logo.
Photographer: Waldo Swiegers/Bloomberg
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Vodacom Group Ltd.’s unit in the Democratic Republic of Congo will lose the right to provide 2G services this week unless it renews a disputed license, according to a government order.
The directive threatens to disconnect some of Vodacom Congo’s 11.8 million customers who’ve yet to switch to 3G and 4G, or live in remote areas not yet covered by the faster data services. Johannesburg-based Vodacom owns 51% of Congo’s biggest mobile operator, which generated about 6% of total revenue of 86.4 billion rand ($5.97 billion) last year.