Vodafone to launch 4G to stem customer loss amid uphill battle with rivals
The company is using the launch of the 4G network as part of its strategy of stemming the heavy loss of customers since late 2010. The company lost 423,000 customers last year, Vodafone's own figures show.
But chief executive Bill Morrow said the company's new 20 megahertz spectrum technology would allow its network to have greater speed than Telstra's and Optus' existing networks.
"At least for a period of time, we will have the fastest 4G network in Australia," he said. "We will have a bit of differentiation point that no one else has."
Vodafone, the country's third largest telco, is fighting an uphill battle against Telstra and Optus. Telstra has developed a significant first mover advantage in its super fast 4G network.
Mr Morrow also predicted as customers shift more towards smartphones, tablets and other data-heavy devices, carriers would start to charge more for data according to tiered plans.
"If you look at places that had competitive high broadband shift, that has actually occurred," he said.
Mr Morrow also revealed for the first time the extent of Vodafone customers' dissatisfaction.
He said long-term customers who signed up before the carrier's well-publicised network failures rated the company at negative 11, while "post-crisis" customers gave Vodafone a score of negative 27.
The industry average in Australia is between negative one and two.
Frequently Asked Questions about this Article…
Vodafone is launching a super-fast 4G mobile network across major Australian capital cities in June, according to the company.
Vodafone says the 4G launch is part of a strategy to stem heavy customer losses it has suffered since late 2010. The company reported losing 423,000 customers in the last year.
CEO Bill Morrow said Vodafone's new 20 megahertz spectrum technology will allow its network to be faster than the existing networks run by Telstra and Optus, and that for a period Vodafone expects to have the fastest 4G network in Australia.
Vodafone is described as the country's third-largest telco, fighting an uphill battle against larger rivals Telstra and Optus. The article notes Telstra has a significant first-mover advantage with its existing 4G network.
Bill Morrow predicted that as customers move toward smartphones, tablets and other data-heavy devices, carriers will begin charging more for data under tiered plans, reflecting increased demand for high-capacity data services.
Vodafone revealed long-term customers who signed up before its network failures rated the company at negative 11, while 'post-crisis' customers gave a score of negative 27. By comparison, the industry average in Australia is between negative one and negative two.
Challenges highlighted in the article include major customer losses, weaker customer satisfaction scores, and the competitive pressure from Telstra and Optus — including Telstra’s first-mover advantage in 4G — which make Vodafone's recovery an uphill battle.
Investors may want to monitor Vodafone’s customer numbers and churn rates, whether the claimed 20 MHz spectrum translates into measurable network speed advantages, any changes in data pricing or tiered plans, and shifts in customer satisfaction metrics — all of which could affect the company’s competitiveness.
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