Vodafone AU's pre-pay push yields dividend

By Iain Ferguson
19 November 2003 12:40 PM
Tags: pre-pay, mobile, vodafone, iain, ferguson, telephone, percent, carrier
Australia's third-ranked telecommunications player, Vodafone Australia, has recorded a 9.5 percent rise in its pre-pay mobile customer base, in line with its shift to a new business model, for the six months to September 2003.

The carrier saw its post-pay base slide 4.5 percent for the period over the same period last year.

Vodafone -- which launched its Red Sim pre-pay mobile promotion in September -- said early indications for the campaign were "promising, with both customer connections and recharge values above expectations".

Vodafone Australia's managing director, Grahame Maher, told ZDnet Australia   the carrier maintained an "aspirational" goal of a 25-30 percent share of Australia's mobile market, up from around 18 percent at the moment. However, he stressed that this was not a specific target for the current year.

Maher also indicated the carrier was not looking at any further sharp price reductions for mobile services in the current year, saying mobile rates would reduce in an "evolutionary" rather than radical way.

Maher also declined to shed new light on the carrier's long-awaited strategy for the delivery of third-generation mobile services to the local market, saying final negotiations with prospective partners "could go either way".

However, he confirmed that the carrier was still targeting a 2005 startup date for third-generation services.

Meanwhile, the carrier's Vodafone Live 2.5 generation service has performed "extremely well," it said, with more than 76,000 handsets sold since its launch in March.

Data revenues increased by 37 percent over the same period last year, from around 7 percent to about 13 percent, Maher said, highlighting the growth in areas such as text messaging.

The company's overall Australian customer base grew 2.5 percent to 2.627 million for the period.

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