Telecom hauls in Vodafone

Vodafone has added customers at almost half the pace of the previous three months as rivalry increased with Telecom.

The world's largest mobile-phone company's New Zealand arm added 38,000 subscribers in the three months to June 30, taking its total to 1.929 million.

In the three months to March 21, the company had added 60,000 subscribers. Telecom will report its results on August 5.

Telecom has stepped up competition after Vodafone lifted its share of the mobile market to about 55 per cent.

Telecom formed an alliance with Sprint to source handsets, offered incentives such as cheaper text messages and vowed to match Vodafone's prices. It has started a high-speed 3G service ahead of its rival.

In the year to June 30, Vodafone NZ said its average revenue per subscriber was $625, down from $633 in the year to March 31.

- BLOOMBERG