Vodafone tops 2 million customer mark

Mobile operator Vodafone topped the 2 million customer mark in the December quarter, a sign that after four quarters of losing market share it may be regaining the upper hand against Telecom.

Vodafone added 68,000 customers in the quarter, up from just 27,000 in the September quarter, taking its total customer tally to 2.024 million.

While its market share remained steady at 54 per cent, the rise in customer numbers showed the British mobile giant's $2 billion investment in a new 3G network might be starting to pay off.

"We've introduced a range of firsts to New Zealand with our 3G service," said Phil Patel, Vodafone's director of business markets.

Customers can now make video calls, watch TV and download music on their mobile phones,

Vodafone's strategy has also been to engage in a price war, discounting its prices by 29 per cent in the past year in a bid to stem the tide to Telecom.

Telecom added 72,000 customers in the September quarter, largely due to the popularity of its discounted texting plans, giving it a tally of 1.673 million customers.

Telecom offers $10/month texting, popular with teenagers, and limited price off-peak call offers. Vodafone has countered that with free weekend texting and similar discounted off-peak calls.

Vodafone's aggressive discounting has come at a cost, however. The company said average revenue per user (ARPU) declined to $137.2 from $140 in the September quarter.

Prepay ARPU was steady on $25.9, bringing total ARPU to $51.2 against $51 in the September quarter and $53 in the same quarter a year ago.

About 80 per cent of Vodafone's customers use Prepay.

Vodafone said its customers were talking more than ever on its network, with voice usage totalling 616 million in the quarter, compared with 538 million voice minutes a year ago.

Vodafone New Zealand, a unit of the world's biggest cellphone group, does not report its financial results publicly.

- NZPA