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Telecom gains mobile customers, rebrands Skinny

Moutter offers more details on wi-fi rollout.

Chris Keall
Fri, 23 Aug 2013

Telecom says it had a net gain of 92,000 mobile customers in the second half of its financial year for a total of 1.81 million (920,000 on contract, 895,000 prepay).

Across the full year, its numbers droppped from the 2.1 million with the CDMA closure, a 10.9% fall.

CEO Simon Moutter said the company's Skinny sub-brand has been relaunched this week as a "Pak'N'Save" style mainstream budget brand (read Skinny head Paul Taylor's take on the rebranding here).

Vodafone NZ reported a net quarterly gain of 19,000 mobile customers, ending nine quarters of losses.

Mr Moutter said that was "not real growth" but the result of TelstraClear's modest mobile business being rolled in.

All up, Vodafone said it had 2.37 million active mobile customer connections as of June 30.

2degrees has not updated on customer numbers since August last year, when it claimed 1 million customers, 100,000 of them on contract.

Telecom's average revenue per user per month was $54 for post-pay customers in the six months to June 30, Mr Moutter said on a conference call this morning. For pre-pay customers it was $12. Overall, average ARPU increased from by 18.1% to $33.65 in the 12 months to June 30 over the prior year's $28.50. But the gain was offset by the loss of 228,000 customers with the CDMA switch off.

Adjusted mobile revenue increased $38 million - not enough to offset a $160 million fall in Telecom's fixed line business, which continued its relentless decline.

Mr Moutter said Telecom had "One signifcant customer loss, which was the NZ Police."

In February, Vodafone said it had won a $159 million, 10-year Police contract centered on an iPhone and iPad rollout. Vodafone displaced a chunk of police business held by Telecom's Gen-i unit - contributing to an 8% fall in Gen-i ebitda.

Mr Moutter said 130,000 customers had registered use Telecom's wi-fi network, which involves wi-fi gear being installed on Telecom phone boxes - around 200 so far.

The CEO said thousands of wi-fi hotspots are being rolled out, and will eventually be integrated into Telecom's mobile plans.

Wi-fi is currently free to all-comers but will be "commercialised soon."

US company Ruckus Wireless says it is part-way through a contract to upgrade 3000 Telecom phone boxes to wi-fi hotspots.

Chris Keall
Fri, 23 Aug 2013
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Telecom gains mobile customers, rebrands Skinny
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