Vodafone has more than half of mobile market

9.25am

Vodafone New Zealand said today it now has a 56.3 per cent share of the local mobile phone market.

The company said in a statement said its customer base had grown to 1.757 million, after it gained 150,068 mobile phone users in the six months to September.

The company said growth in PrePay customers had been particularly strong, with PrePay average revenue per user (Arpu) in the 12 months to September rising to $349, compared to $324 for the previous year.

But Arpu for customers with contracts, or 'On Account' users was down from $1855 to $1817. Overall total Arpu fell 0.7 per cent to $661.

Managing director Tim Miles said the company was concerned by the possible implications of further industry regulation.

The Commerce Commission is looking at the regulation of mobile termination rates -- the interconnect fees that telecommunications companies pay each other -- following complaints about the high cost of calling a mobile from a home phone.

He said as Vodafone doesn't own landlines it had no influence over the cost of making a call from a home phone to a mobile.

"That's up to the fixed line operators," Mr Miles said.

"We are determined not to let the Commerce Commission stop our customers having the best services first," he said.

Over the past six months, Vodafone has launched mobile email, the 3G Mobile Connect Card and increased options for voice and data roaming.

Mr Miles said Vodafone was upgrading its network to provide 3G-enabled services, which it will release to customers next year.

- NZPA