Vodafone closing in on Telecom's market share

Vodafone says it is closing in on Telecom in the race for mobile phone customers, even as 17,000 of Vodafone's customers lost the use of their phones because of a software hitch.

Managing director Tim Miles said the company was upgrading its network on Tuesday night and then found the software had turned off one type of phone.

He said Vodafone had added 61,000 customers in the past six months, taking its total to 1,115,600 at the end of September.

Telecom has lost mobile phone customers in the past year, with its total falling to 1,248,000 at the end of September, from 1,310,000 a year earlier.

That means Telecom's market share has fallen to 52 per cent and Vodafone's has risen to 48 per cent.

Vodafone has reported a strong half-year result to September 30, with rises in revenue and customer numbers, but it has not provided dollar figures.

Miles said he was not permitted by Vodafone's parent company to provide dollar figures on revenue for the six months.

The company had reported that its revenue for the six months increased 18 per cent and earnings before interest, tax, depreciation and amortisation rose 34 per cent, compared with the previous corresponding period.

Figures that both companies have released show Vodafone's mobile customers spend much more than Telecom's.

Vodafone's average prepaid customer spent $301 a year compared with $85.20 by Telecom's average prepaid customer.

Vodafone's average contract or postpaid customer spent $1840 a year, compared with Telecom's average contract spend of $885.60.

On average, a Vodafone customer spent $652 a year, compared with a Telecom customer's average spend of $397.20 a year.

In the year to March Vodafone posted a $49 million after-tax profit, earned on revenue that was 30 per cent up at $703 million.

- NZPA