Critical.
Authoritative.
Strategic.
Subscribe to CIO Magazine »

Vodafail bites bottom line, customer base

The telco loses 375,000 customers so far this year

Vodafone Hutchison Australia (VHA) has reported a loss of 375,000 customers so far this year, following customer service and network issues.

VHA said that 347,000 of these customers came from its prepaid and mobile broadband service, as well as users of other mobile companies that ran on the Vodafone Hutchinson network, known as Mobile Virtual Network Operators (MVNO); the remaining 28,000 were post-paid customers.

The telco, a 50:50 joint venture between Hutchison Telecommunications Australia (ASX:HTA) and Vodafone Group, revealed its total customer base stood at 7.2 million — 61.4 per cent of which were on post-paid plans — in its half-year briefing for the six months ended 30 June, 2011.

Hutchison Telecommunications Australia reported a net loss of $78.2 million in the first half of the year.

"The network and customer service issues that affected some customers in late 2010 and the early part of 2011, combined with a highly competitive mobile market, has had an impact of Vodafone's sales and retention," HTA’s briefing on its half-yearly results said.

Thousands of Vodafone customers voiced their complaints about dropped calls, poor reception and slow data transfers at the end of last year.

As a result, HTA’s chairperson, Canning Fok, said in a statement that VHA has “moved quickly” to repair network issues and “improve customer service performance”, with the telco recently wrapping up a three-month network upgrade, involving the installation of new mobile equipment at 49 sites across Newcastle, parts of the Central Coast, and the Hunter.

Earlier this month the telco announced it will upgrade its network in Canberra to enable delivery of 2G, 3G and 4G technologies from a single base station by mid 2012, with 815 sites already upgraded on the existing 2G and 3G networks. By the end of the year, the telco is also expected to upgrade another 515 sites and built 500 new network sites.

“Our focus on network and service improvements is having a positive impact on customers and operationally, we have turned the corner,” said Nigel Dews, VHA chief executive, in a statement.

With additional reporting by AAP.

Follow Computerworld Australia on Twitter: @ComputerworldAU

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: AAP, etwork, Hutchison, Hutchison Telecommunications, VHA, Vodafone
References show all
Comments are now closed.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: Vodafone, Vodafone Hutchison Australia
Latest Blog Posts
Whitepapers
  • Information Management
    Valuable data can be a needle in a haystack, but by leveraging the value in existing information assets, organisations can generate real and achievable gains in revenue generation, IT investments and productivity gains. This whitepaper discusses how Information Management (IM) is a multi-faceted discipline that can be employed to meet or exceed your business objectives.
    Learn more »
  • Rebranded Quadmark revamps its IT solutions with Google Apps
    The Singapore office was using Exchange as its email server but encountered various issues such as storage capacity limitations and difficulty in managing spam. Adding new users to the server was also a hassle that often required a third party vendor, resulting in a waste of time and resources. Quadmark also experienced email performance issues that slowed down their employees’ response time, leading to frustration among staff and clients. Quadmark’s management felt that it was unacceptable to continue it’s current solution and thus decided to streamline its IT infrastructure alongside its rebranding plans. The business wanted a unified and consolidated email service for its various offices. Quadmark also wanted to be able to house files and documents on the cloud.
    Learn more »
  • The Three Essential Steps to Successful Cloud Migration
    Businesses and enterprises have quickly realised the power and efficiency of cloud computing, but migrating to the cloud can be a challenging process. This guide leads you through the three key steps you should take to assess your workload, select the most appropriate cloud model and ensure your cloud provider’s migration methodology stacks up.
    Learn more »
All whitepapers
rhs_login_lockGet exclusive access to Invitation only events CIO, reports & analysis.
Salary Calculator

Supplied by

View the full Peoplebank ICT Salary & Employment Index

Recent comments

Computerworld
ARN
Techworld
CMO