Vodafone loses 50,000 customers
TOTAL NZ MOBILE CONNECTIONS
Vodafone: 2,434,000*
Telecom: 2,079,000**
2degrees: 580,112***
MVNOs: 45,000****
More bad news for Vodafone NZ, which yesterday lost its long-time iPhone monopoly: its UK parent's latest market filing reveals its local operation has lost customers for the second quarter in a row.
For the three months to September 30, Vodafone NZ had a net loss of 24,000 customers. In the previous quarter it shed 26,000.
Despite the losses, the carrier still has more than 2.4 million subscribers, and a handy lead over Telecom (see table above).
The half-year total loss of 50,000 cancels out Vodafone's prior six months that saw it gain 40,000 - meaning it's more less even-stevens for the past year, and still only marginally down on its 2.5 million customer count at the time of 2degrees' August 2009 launch.
The percentage of Vodafone customers on prepay - over 70% at the time of 2degrees' launch - continued to slip, falling from 67.6% to 67.2%.
Vodafone's spin is that pre-pay or "glovebox" customers - as country manager Russell Stanners has called them - yield much lower average revenue per month than contract customers. The subtext is that 2degrees is welcome to them. (2degrees has expanded into contracts, recently adding business plans).
Today, spokesman Matt East picked up on this theme, noting Vodafone had enjoyed a slight gain in contract or "post pay" customers over the quarter.
Mr East said the decline in pre-pay customers had slowed. The company had new plans in the works, Mr East said (NBR understands a Best Mates bombshell will shortly be lobbed in Telecom and 2degrees' direction). It also expected a seasonal upswing going into Christmas.
"What we are seeing in New Zealand is evidence of a truly competitive market," Vodafone general manager for corporate affairs Tom Chignell told NBR earlier.
"Some quarters we come out on top and others we don't. I guess that's something that should be celebrated, isn't it?"
Telecom down too
At its full-year result, Telecom said it had 2.079 million mobile subscribers - a net loss of 95,000 over its June quarter.
Beyond its total number of mobile customers, a key problem for the company is the so-so pace of migration to its XT network.
At its full-year result (presented in August), the company said just over half of its mobile customers had moved to XT in the two years since its launch.
Its old CDMA network is due to be switched off in June next year. Telecom will be hoping its newly gained iPhone 4S will help speed up the migration to XT (as well as attract customers from competitors).
2degrees up
Vodafone and Telecom's losses come at a time when 2degrees is apparently adding customers at pace.
On March 22, the relative newcomer said it 580,000 active customers - a big leap over the 206,000 it reported in February 2010.
The privately-owned 2degrees has been mum since March. But if its competitors' subscriber numbers are anything to go by, it's continuing to gain share.
* Vodafone PLC 2011 financial report, three months to September 30, 2011
** Telecom 2011 third quarter trading update
*** 2degrees public announcement
**** Estimate based on MVNOs' comments to NBR. Mobile virtual network operators resell a wholesale service. Easily the largest is TelstraClear, with around 40,000 mobile customers using a rebadged version of Vodafone's network. Vodafone does not include MVNO numbers in its total.
The total number of mobile connections (around 5.27 million) exceeds New Zealand's population, reflecting that a number of people have more than one mobile phone account and/or data devices with SIM cards.
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Comments and questions75
What about Data only connections? What you will start to see shortly is the balance or Decline in 2degrees sign ups. Their data network is far less superior to XT. However data is not that huge yet; most people just want voice and text.
I'm no glove box phone owner and I duimped vodafone because their network was was only marginally better than their cusotmer support - in short they were rubbish.
Strangely enough they were incredibly attentive to my business needs when they wanted to sign me up but once I signed they were worse than useless
How about when their prepay customers get better deals than on account?
Another Vodafone article & all the Telecom & 2 Degrees Keyboard Warriors go on the rampage - *sigh*
@G Sounds like a lot of disgruntled VF customers if you ask me.. why should they be so disgruntled?
Because they used to charge $1 for Customer support for issues they created and they don't look after their on account customers.
Hi Hursh.saha - or whatever you stupid name is, Vodafone have dropped the $1 for Pre Pay customers calling them a long time ago - move on!
Thanks for letting me know G, or Mr G, or what ever your real stupid name is... I did say "used to". Customers do not forget!
I work in Auckland City and live in Herne Bay. While driving from work to home, I can't use my mobile on VF network. Too unreliable. Also, I can't make any calls while at home. Third world rubbish.
Move on Hursh.saha & get over the bridge!
I use to live in Herne Bay & have always had excellent coverage there & still do when I visit & I'm on Vodafone.
Making calls in the CBD whilst travelling to Herne Bay have never dropped for me - maybe your phone is faulty - this is not Vodafone's fault.
How about when I used to have phone insure at $9 a month only to have it put up to $12 and a higher premium. So high that there was no point in having it.
Or the fact that promotions always start with prepay first, not on account?
Or that the only real good deals are when your locked in for 12-24 months?
If you are going to lose customers (which you are going to do if you have a new entrant) then common sense says you expend resources retaining the high value/high margin ones and allowing the competition to take on some but not all of your lower value/lower margin ones.
You have to keep some on the basis they may end up moving up value tiers and you don't want your new entrant starting to get too many customers and thus economies of scale or being able to lever margin by matching your lowest price.
Vodafone has some "phat" personal and business customers tied down with iPhone deals on revenue per customer/month that 2 degrees can only have wet dreams about. Voda even reduced the subsidy on their plans recently but with the white iPhone and the v5 around the corner they can hang onto them and because some customers (and IT departments) don't want to have to deal with Androids/Google ones that are far from homogenous - and Blackberry addiction numbers are on a slide - I can't see those phat customers jumping ship.
Now if only someone would actually come up with a decent mobile data only plan with adequate coverage - then maybe I'd actually use mobile data rather than leave the SIM Card slot on my iPad 2 vacant.
Get over the bridge........
G you are obciously on Vodafones payroll as no one in their right miond would be a vodafone fan boy.
I have used my vodafone mobile throughout both Auckland, Wellington and Christchurch and it has been an abysmal experience.
So you can pointifcate and defend the un-defendable but at the end of the day 26,000 other people had the same opinion of Vodafone as me and voted with their wallet and walked
I'm not on the Vodafone Payroll actually - I'm a happy customer.
I've used my phone in the same areas & found Vodafone covergae excellent.
After all - 2,458,000 can't be wrong - which equals the number of Vodafone customers - oh - btw - that's 265,000 MORE customers than it's nearest competitor Telecom!!
No G, unfortunately it's not my phone, it's your network. My partners phone doesn't work at home and neither do any of our friends. You can just send and retrieve txts if you lean over the top balcony and wave the phone around. Not only is the an inconvenience, but it looks stupid.
Instead of spending a few hundred million dollars on that dog of a billing system a few years back, you shold of spent that money on a better network.
I'm going to terminate my contract.
Had major issues with calls being dropped and not being put through for a period. Finally after several long calls to Vodafone they admitted they had cell site issues where I was so. So maybe it was not a problem with the phone but with Vodafone.
Also I changed to 2 Degrees - saving more than 50% on business phone costs. Vodafone was willing to match the 2 Degree monthly price only if I signed up for 3 years and took twice as many phones as I needed.
Simple really.
3 years, haha.... Hold on 2degrees... Do you have to be locked in for those great rates?... I know the answer is NO. But just saying... Go XT or 2D!
... For $59 I now get 1GB + 310 Mins + 2500 texts. Beat that VF, yeah 2D fanboy, just saying.
Why dont you do us all a favour G, and JUMP OFF THE BRIDGE!
Would have stayed with Telecom if they would up the texts in their smartphone plans .. Has stayed the same number even with the texts MTRs dropping to 0.06c
Vodafone has no customer service,
It"s that simple, soo many staff yet not a one
Is responsible for looking after it" s
Customers, who's the CEO in NZ,
He must be an ostrich,
Management 101, never assume your mid level management actualy give a damn,
More interested in walking around with silly
Prox cards around their necks like a bunch
Of Stupid geeky clones... Very sad.
*** WOOP WOOP ***
best telco news this month!
GO 2° GO...
Cripes..moan..moan..moan..get real all of you..what do you need a phone for? Communication of course as sometimes you can't yell loud or far enough to be heard so you pick up the phone..no network is perfect..you want top service and the best tech that goes with it..hello!! wakey wakey it all costs money?!
Me, I'm happy as the world ain't perfect nor am I according to many however..life goes on...Merry Xmas
Go G!!!!!!!!!! All the other comments except yours and mine aren't worth reading!!
Our business was persuaded to transfer it's contract to Voda a year ago on the promise that their network was as good if not better than Telecom's XT. The truth? Let me put it this way. The Fair Trading Act comes to mind because calls are dropped numerous times a day. And there are numerous known range blackout areas throughout the CBD, let alone outside of it. Just try getting onto the Southern Motorway from Nelson St. You will have hit two blackout areas before you even get to Gillies Ave. It is a deeply frustrating service. The business I'm with and everyone in it are counting down till the 2 years are over.
And I see from above that Voda has admitted the same problems to someone else. They have cell site issues everywhere. Plus if you ask me, I'd guess and insufficient network capacity for all the data that's pumping down their lines.
So much moaning lol...well i think none of the providers have 100% coverage in NZ...there will be customers from all telcos who are not happy with their coverage...at the end of the day its everyone's own choice who they want to be with...if you get a better 2deg service go with them, if you get a better voda service stick to them!! How hard is it to go with a provider who provides you best service instead of going around moaning and complaining...sounds like employees trying to bad mouth each others competitors...well goodluck with that and surely you should be expecting pay rise or bonus for this job well done :)
2 degrees are desperate for more money - they send in all their employees to post on the NBR articles - making up BS stories that simply do not add up.
I would love to see NBR disclose the IP origin of the posters here.....
Well I don't work for Vodafone and my IP will show up as Vodafone or Telecom supplied depending on whether I post from my mobile or from home. Who cares?
I've always had good customer service from Vodafone and my reception has improved markedly since I got rid of my iPhone 3G. I won't go back to Telecom for my mobile as they have no credibility having let down their customers 3 times with poor network technology choices. 2 Degrees just don't have the data coverage to meet my needs. The only issue I have with Vodafone is how far their policy decisions lag behind their customer's needs. Despite this they are still be best network provider in the country by a long way IMO.
as someone who has been here only a few short years I have had the misfortune of dealing with both vodaphone and Telecom. I am now with 2 degrees whose plans without contract (which I will never sign again after dealings with Telecom and vodaphone) are far superior. As for service I have no problems in the major auckland area. I do have to say that although customer service with 2degrees is far superior to the others it still has a long way to go as do all technology services in NZ. I seriously feel like I have gone back in time moving here as the majority of Nz knows less about internet than my 75 year old grandmother. I believe that is the reason not more of Vodafone and Telecom customers have switched. If the recent power commercials are anything to go by Nz needs to get with the program and do their research.
Yeah 2d use vodafones network so we know you're talking through your hat
Most people would be probably be posting from a computer. It's quite easy to find out which business that IP - as in 2 Degrees for example, or whatever company computer the poster is posting from.
NBR would never disclose that - but I suspect that most of the people here are either Telecom or 2 Degrees employees.
Exactly - currently - 2 Degrees only have coverage in Auckland, Wellington, Christchurch & Queenstown.
Outside of these areas, 2 Degrees roams on the Vodafone Network.
2 Degrees is building their own network in other areas in New Zealand though however, but it will take a long time, before they have the same extensive coverage as Vodafone & Telecom.
I also understand that Huawei is paying for the 2 Degrees Network build, not 2 Degrees themselves, as 2 Degrees cannot afford it.
Their physical towers cover more than 60% of the NZ Population...
Nope, I do not work for any cell company, I have just had very bad experience with Vodafone . Their arrogance pushed me of the edge an number of years ago.
You still sound "off the edge" as well - get over it!
Seriously, if you dont like your provider move on to one who suits your needs... What a waste of time slagging them off... Bitter anyone....... Every company/industry has issues, all needs are different.. It would be fabulous if they could all be perfect and tailor make everything to suit you all but funnily enough no-one has a never ending pot of money to make that happen - do you? Perfection costs... Be reasonable and grow up...
Well said!
Agree 110% ya pays peanuts ya gets monkeys!!
you all r a bunch of loosers. 2 deg plans are cheap becoz they wanna lure customers. they cant match the giants. wait n watch. the prices will go up. and btw all of you who complain abt vod network and move to 2deg they use vod network ppl.never had a reception problem in 5 years. have my mobile, landline and internet with Vod. Long live Vod
who is gonna pay for the 76.8 mil loss. u loosers
Guys it all seems to be alot of QQ.
Telecom - millions in wasted advertising for a network that failed "but wait we'll give you coverage EVERYWHERE -_- zZz.
2degrees - Dont have their own stores in all major citys to help their customers.. Fail?
Vodafone - Reliable and decent all round. Personal experiences dont make up for the fails by the other companys.
Do you have an IPhone, by any chance. If so, there is your problem. Their reception is rubbish. Mine, and my partner's do not work in areas where I used to receive OK coverage with previous handsets.
All that said, I still like the IPhone
My phone makes calls, it also receives calls ... exciting stuff.
My phone also texts...LOL and :-) ... again ... exciting stuff.
Why do people get so passionate about phones and phone companies, personally I find the topic incredibly boring, but I am fascinated how many people are experts in this area on NBR. Am I to conclude a typical NBR reader is not someone I would want to talk to at a party? Am I also to conclude a typical NBR reader is someone that thinks an iPhone is still cool and funky?
I’m guessing the telcos give their staff NBR subscriptions, cause I don’t meet many people that care about this sort of thing
Frankly, you should not be using your cell phone to make or accept calls on the motorway anywhere near the CBD - even witha handsfree kit. The traffic is too dense, and requires your full attention while driving. Just because you have a cell phone doesn't mean you have to using it all the time.
As NZers are paying some of the highest prices in the world to use a mobile phone why bother using them. Check out some of the mobile pricing in Aussie and see how consumers are being ripped off.
Add two more to Telecom. No not because of the mobile service. Try getting a credit from them when there's a problem with broadband and you can't access the internet for two days. We thought we had a contract for SERVICE. They don't even respond to email requests.
Arrogance of monoplies
Wait until the partial privatisation of SOe's then you will really see monopolies at work
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