Vodafone Ireland adds 34,000 new customers

24-01-2006

by Ciara O'Brien

Vodafone continues to extend its influence in the Irish mobile market, adding 34,000 new customers in the quarter to the end of December.

According to the firm's Key Performance Indicators, 30,000 pre-paid and 4,000 post-paid customers joined the network in the three months to 31 December 2005, boosting the operator's total customer base to more than 2 million in Ireland. For the 12 months to 31 December, 118,000 new customers were added to Vodafone's customer base, double the growth rate of last year.

O2, which announced its results yesterday, added 32,000 new customers to its 1.6 million subscriber base. However, it signed up more contract customers than Vodafone, winning 7,000 new post-paid subscribers.

However, despite an increase in the average time spent using mobile phones, blended average revenue per user (ARPU) fell compared with the same period in 2004. According to Vodafone, customers used an average of 215 minutes per month, compared with 210 minutes the year before, but ARPU fell to EUR50.20 from EUR50.70 in 2004. The mobile operator has passed this off as its commitment to customer value for money.

Vodafone is also branching out, taking the opportunity to launch its new 3G/UTMS router for mobile teams. The mobile operator claims that it is the first router of its kind in Ireland, and was born from a collaboration with Linksys. The router allows teams of up to five people to use the wireless LAN capability to access high-speed mobile data services on the Vodafone 3G network.

The firm is also reporting a good reception for its new "Stop the Clock" promotion, despite the fact that it was only launched last weekend. Subscribers to the new service, aimed at prepaid customers, can make hour-long phonecalls for the price of three minutes, or opt to avail of a 50 percent discount on certain calls.

"Our ongoing investment of more than EUR3 million per week, maintaining our 3G leadership and delivering superior services to the market, allied to our continuing commitment to driving customer value, continues to attract more customers to Vodafone, and maintains our strong leadership position in the highly competitive Irish mobile market," said Gerry Fahy, strategy director, Vodafone Ireland, in a statement.

On a groupwide basis, the firm added over 7 million new customers, up 30 percent on the same period last year. The group's 3G market is also going from strength to strength, with 3.1 million devices added, bringing the device base to 8 million in the group's subsidiaries and joint ventures.

However, it wasn't all good news, with Italy and Germany both disappointing in revenue growth. The firm has blamed this on increased competition and regulatory measures that forced cuts in mobile phone charges.