Vodafone bulks customers, drops ARPU

Vodafone bulks customers, drops ARPU

Summary: Vodafone Australia has stacked on customers this quarter, but its average revenue per customer has taken a hit.

TOPICS: Telcos, Mobility

Vodafone Australia has stacked on customers this quarter, but its average revenue per customer has taken a hit.

The global telecommunications giant added 70,000 local customers to its base, bringing Vodafone's Australian user group to around 4.1 million.

The increase in customer base as well as a higher number of high value customers and better penetration of mobile PC devices has driven growth in the region, according to Vodafone.

Mobile data is the darling of the company's growth prospects, with Vodafone "playing and winning in the mobile broadband market" according to Russell Hewitt, CEO Vodafone Australia.

However, the company's total average revenue per customer has fallen to its lowest for two years at AU$48.7, with contracted customers being around triple as lucrative as prepaid customers, at $88.4 ARPU versus $31.5.

Last quarter's total ARPU was $52.5, with contract ARPU being $90.7 and prepaid being $35.7.

3G has been finding its wings, with the company network sporting almost one million 3G devices at the end of the quarter. The company also touted its mobile broadband network upgrade, which it said would provide customers more choice come December.

Topics: Telcos, Mobility

Suzanne Tindal

About Suzanne Tindal

Suzanne Tindal cut her teeth at ZDNet.com.au as the site's telecommunications reporter, a role that saw her break some of the biggest stories associated with the National Broadband Network process. She then turned her attention to all matters in government and corporate ICT circles. Now she's taking on the whole gamut as news editor for the site.

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  • Great business strategy

    Same one used by OneTel
  • ?

    care to explain?
  • How obvious

    Sign up lots of clients that spend no money, tell the world you grew by a huge amount so everyone thinks you are fantastic and then hope all of these clients suddenly open their wallets for you to make a profit. Vodaphone is launching an expanded 3G network in 6 months and they think all of these new $10 per month clients will suddenly increase their spending. In OneTel's case they valued each client at over $1200pa in revenue on average while the actual spend was less then 1/4 of that.