Customers keep hanging up on Vodafone
Accounts released overnight by Vodafone's European-based parent showed its Australian business lost 64,000 customers in the three months to December 31, to 3.11 million. As Vodafone Group Plc reports half of the results of Vodafone Hutchison Australia, this translates to VHA losing about 128,000 customers in the quarter, or 6.34 million customers.
Customer losses contributed to a 16 per cent fall in Vodafone Australia's service revenue for the period.
"The business continues to focus on network improvements and arresting weakness in brand perception," Vodafone Group said in its third-quarter financial report.
Vodafone Australia's revenue fall was sharper than the 14.4 per cent drop it recorded in the three months to the end of September.
Vodafone Australia is jointly owned by Vodafone Group and Hutchison Telecommunications Australia, which used to own the 3 brand. HTA will release its half-year financial report later in February.
Meanwhile, Communications Minister Stephen Conroy has been accused of bullying and intimidation after attacking Vodafone's Australian chief. Senator Conroy reportedly compared Bill Morrow to unpopular former Telstra boss Sol Trujillo, after he questioned the government's commitment to the universal service obligation.
Mr Morrow has called for a review of the subsidies paid to maintain fixed-line services, which he said had cost the industry more than $660 million over 10 years.
Opposition communications spokesman Malcolm Turnbull said Senator Conroy's comments were typical of "a very arrogant and bullying attitude" to a regulated industry.
Frequently Asked Questions about this Article…
Vodafone Group's accounts show that Vodafone Australia's share of revenue from its Australian subsidiary fell 16% in the three months to December 31, 2012. The company reported significant customer losses during the quarter, which the report cites as a key driver of the service revenue decline.
Vodafone Group reported the Australian business lost 64,000 customers in the three months to December 31, bringing Vodafone's Australian base to about 3.11 million. Because Vodafone Group reports half of VHA's results, that implies VHA lost roughly 128,000 customers in the quarter, leaving about 6.34 million customers.
The 16% fall in Vodafone Australia's service revenue in the quarter to December 31, 2012, was slightly sharper than the 14.4% drop recorded in the three months to the end of September 2012.
Vodafone Australia is jointly owned by Vodafone Group and Hutchison Telecommunications Australia (HTA). The joint operation is known as Vodafone Hutchison Australia (VHA); the article notes HTA previously owned the 3 brand and will release its half‑year financial report later in February.
In its third‑quarter financial report Vodafone Group said the business was focusing on network improvements and 'arresting weakness in brand perception' as steps to tackle the customer losses and revenue weakness.
Yes. Communications Minister Stephen Conroy was reported to have publicly attacked Vodafone's Australian chief Bill Morrow, comparing him to former Telstra boss Sol Trujillo after Morrow questioned the government's commitment to the universal service obligation. Opposition spokesman Malcolm Turnbull criticized Conroy's comments as bullying.
Bill Morrow called for a review of the subsidies paid to maintain fixed‑line services, saying those subsidies had cost the industry more than $660 million over 10 years. He also questioned the government's commitment to the universal service obligation.
Investors following Vodafone Australia may want to watch upcoming financial updates such as HTA's half‑year report due in February, future Vodafone Group trading statements on Australian performance, customer‑number trends, progress on network improvements and brand initiatives, and any regulatory developments linked to the universal service obligation.
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