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Vodafone Australia Key Highlights

  • 19 November, 2003 07:56

<p>· Customer base increased by 2.5 % to 2,627,000 in the six months to 30 September
· Vodafone has been very successful in reducing capex by 70% and opex by 35%,
enabling the company to focus on providing truly different and competitive offerings to
drive growth.
· The pre pay customer base increased by 9.5% helped by new service offerings and
in line with the new business model the post pay base declined by 4.5%.
· In September, Vodafone red SIM was launched providing customers with the freedom
to control spend and choose great call rates or free TXT to everyone, anytime. In an
independent comparison of all prepay offers in Australia - carried out by Phone
Choice - Vodafone red SIM was found to deliver the best value in all customer
· To support the launch of Vodafone red SIM a new integrated brand marketing
campaign was launched to drive both brand preference and sales.
· Early indications of red SIM are promising, with both customer connections and
recharge values above expectations.
· Blended ARPU declined from $633 to $587 compared to 31 March 2003, which
reflects Vodafone’s moves to remove handset subsidies and lock-in contracts. This
figure does not refect the new red SIM proposition.
· Vodafone live! has performed extremely well with over 76,000 handsets sold since
the launch in March. Data revenue has increased by 37% compared to the same
period last year.
· To support the removal of subsidies the company launched the Vodafone Easy
Purchase Plan, providing customer with the opportunity to purchase a handset
without the commitment to a lock in contract to any network.
· In September, Vodafone sold the remainder of its Vodafone branded retail stores to
expert retailers Digicall Australia and First Mobile, who now operate 92 Vodafonebranded
stores across Australia.
· Vodafone also increased its retail presence to more than 10,000 touch points,
including major retailers like Tandy, Harvey Norman, Kmart, Priceline and David
· In September, Vodafone announced significant investment to deliver 3G services by
the end of 2005.
- 2 -
· As part of the business strategy to focus on core areas of operation, Vodafone
recently announced the outsourcing of some technology functions to partners Five D,
IBM Global Services, Hewlett Packard, TCI and AAP Communications Services
Grahame Maher, Managing Director, Vodafone Australia comments;
“We know where we’re going and our strategy is clear – to dramatically change the Australian
mobile market for the good of the customer. We believe that the future for Australia is mobile
and to succeed in our aim of replacing land lines, we need to drive change by giving
customers lower prices and better service than anyone else.
“We’re pleased we’re seeing steady growth, although we’re focused on our long term strategy
and not just achieving short term wins.
“We still don’t believe that the approach of our competitors makes much sense for their
customers or their businesses. As the global leader in mobile we have a completely different
view of where the Australian market should be and we’re totally committed to driving down the
cost of owning and using a mobile.
“We’ve significantly reduced our acquisition costs by removing handset subsidies and we’ve
thrown out lock-in contracts, for Vodafone this is only the beginning.
“The performance of Vodafone live! has been outstanding and we’ve sold 76,000 live!
handsets since launch - the figures are a clear indication that we’re getting real cut through.
“Christmas is going to be big for us. We’re confident that we’ve got the right offers – red SIM
and Vodafone live!, the best value rates in the market and that we’re continuing to give
customers flexibility and freedom, which quite simply they can’t get anywhere else.”
For further information please contact:
Juliet Simpson, Vodafone Australia on 0414 202 223</p>

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