Vodacom cautious about recovery

Vodacom runs mobile networks in five African countries

The chief executive of South Africa's largest mobile phone firm, Vodacom, has sounded a note of caution about the economic recovery.

Pieter Uys says "If I look at the future... the macroeconomic outlook is uncertain."

The comments come as the firm saw a 16.5% increase in customers to 41.6 million in the six months to September.

Vodacom listed on the Johannesburg stock exchange in May. It is majority owned by Britain's Vodafone.

Mr Uys said there were some early signs of recovery in South Africa, which is experiencing its first recession in nearly 20 years.

But he added that "it is too soon to be confident of a sustained recovery across all customer segments".

A new law which requires all mobile users to register their numbers is also expected to hurt further subscriber growth rates.

The Regulation of Communications and Provisions of Communication-related Information Act, or RICA, came into force on 1 July and has already hit the number of connections in August and September.

Vodacom and rival MTN also face an investigation by South Africa's competition watchdog into the pricing of interconnection fees.

The government wants them to be cut by November.