• Enjoy the freedom to innovate and grow your business


    [ad] With Microsoft Azure you have hybrid cloud flexibility, allowing your platform to span your cloud and on premise data centre. Learn more at microsoftcloud.com.

  • IT Admin: No Time to Save Time?


    [ad] Do you spend too much time patching machines or cleaning up after virus attacks? With automation controlled from a central IT management console accessible anytime, anywhere – you can save time for bigger tasks. Try simple IT management from GFI Cloud and start saving time today!

  • Free Forrester analysis of CRM solutions


    [ad] In this 25 page report, independent analyst house Forrester evaluates 18 significant products in the customer relationship management space from a broad range of vendors, detailing its findings on how CRM suites measure up and plotting where they stand in relation to each other. Download it for free now.

  • Great articles on other sites
  • RSS Great articles on other sites


  • Reader giveaway: Google Nexus 5


    We’re big fans of Google’s Nexus line-up in general at Delimiter towers. Nexus 4, Nexus 7, Nexus 10 … we love pretty much anything Nexus. Because of this we've kicked off a new competition to give away one of Google’s new Nexus 5 smartphones to a lucky reader. Click here to enter.

  • Featured, News - Written by on Tuesday, August 2, 2011 16:40 - 6 Comments

    Winter of Vodafone’s discontent: 375k customers lost

    Vodafone today revealed its total customer base declined by 375,000 over the past six months, with the besieged mobile telco still struggling to shake off poor customer sentiment stemming from its disastrous series of network outages in late 2010 and earlier this year, and a rash of re-classified customer numbers also taking their toll.

    Speaking in a teleconference held today associated with the financial results of its part-owner Hutchison Telecommunications Australia (HTA), Vodafone (VHA) chief executive Nigel Dews said the past six months had been “challenging”.

    Most of the decline in customer numbers had come from a sharp drop of 347,000 prepaid customers over the period, he said, with Vodafone’s underlying post-paid (plan) customers remaining unchanged. However, some of the numbers are not directly comparable, as Vodafone changed the way it accounted for certain types of customers in the quarter — for example, prepaid customers — to focus on how many are truly active.

    “The net decline in total customer base includes adjustments contributing 110,000 to the overall decline, which were due to reporting improvements. This comprised a 32,000 reduction in the post-paid base and 78,000 reduction in the prepaid base,” said Dews.

    The news confirms a report last week by the Financial Review which stated the telco could have lost as many of 378,000 customers in the six months to the end of June. The telco now has about 7.2 million customers in total — with about 61.4 percent of Vodafone’s own customers on post-paid plans (excluding customers of other mobile telcos which resell Vodafone’s services).

    The loss in customers also played out in the company’s financial results, with HTA’s 50 percent share of Vodafone’s finances delivering it a loss of $78.2 million in the first half of 2011, compared with a profit of $17.9 million in the same period in 2010. This means Vodafone’s loss as a whole for the period would be expected to be about $156.4 million for the period.

    Some of that decline in profitability was driven by a $15.6 million decrease in interest income — but Vodafone today acknowledged most of it was due to its network and customer service issues experienced late last year and early this year.

    Turning Vodafone around
    To address its issues, Vodafone has embarked on a series of rolling network improvements, deploying new hardware using the 850MHz spectrum band also used by Telstra, as well as replacing a large number of other sites with new radio equipment from Chinese vendor Huawei.

    Today, Dews said more than half of the 3G 850MHz rollout was now complete, with 788 new sites added to Vodafone’s network, and a total of 1,000 new 850MHz sites slated to be built by the end of the year. 815 sites have been upgraded in general on the existing 2G and 3G networks, while a further 515 sites will have been upgraded by the end of the year, and 500 more built.

    The Huawei radio replacement has kicked off in Canberra, Perth, Northern NSW and Tasmania, after it was tested in the Newcastle/Hunter and Central Coast regions north of Sydney. The Huawei rollout will be completed during 2012, and there are also other core network and transmission upgraded underway.

    The company has also invested heavily in customer service, adding more than 300 customer service staff and introducing 24×7 support, as well as a number of other measures. As a result, complaints to the Telecommunications Industry Ombudsman had been “trending downward”, Dews said, with total TIO complaints falling 36 percent between the first and second quarters of the year.

    The integration of the Vodafone and HTA systems is more than half-way done, following the pair’s merger to form VHA (which primarily trades using the Vodafone brand), and the retail store consolidation is now “largely completed”, according to Dews. The telco is two thirds of the way through its program to refit and upgrade the Vodafone retail stores.

    Despite all the improvements, Vodafone still expects to make a loss in its full year results, which will be announced in January 2012. However, it expects to improve its profitability in the second half of this year, and Dews was up-beat about the telco’s outlook when asked about the issue of re-establishing trust.

    “I think we’re well on our way to doing that,” he told media and analysts. He noted Vodafone had to respond responsibly to customers, have “no surprises” in its service delivery and “delight” customers with its offerings. “I think we’re well on our way to achieving that,” he said.

    Image credit: Matt Wakeman, Creative Commons

    submit to reddit

    6 Comments

    You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

    1. Douglas
      Posted 03/08/2011 at 9:40 am | Permalink |

      Yikes. Brand “Vodafone” can’t be happy with this train wreck.

    2. cantsleep
      Posted 03/08/2011 at 10:17 am | Permalink |

      Net result? Not much customer movement but reporting the numbers more in line with reality. There’s a lot of prepaid sim card activations out there that no one uses…I think it was more like a stocktake on customers…

      • Ben Sand
        Posted 03/08/2011 at 11:14 am | Permalink |

        Correct. More accurate title please Renai :-)

        • Posted 03/08/2011 at 11:35 am | Permalink |

          It doesn’t represent the entirety of the situation, but then no headline ever does. In Vodafone’s own terms it has lost that many customers, so the headline is technically accurate.

          • Ben Sand
            Posted 03/08/2011 at 5:05 pm | Permalink |

            Yeah ok, that’s fair

    3. Adam
      Posted 03/08/2011 at 9:05 pm | Permalink |

      Vodafone greatly improved for about 3 months this year in Brisbane, bet now they’re back to dropping calls again & 3G’s far slower than the rest.

      I can’t figure out why we had a 3 month anomaly.




    Get our 'Best of the Week' newsletter on Fridays

    Just the most important stories, one email a week.

    Email address:


  • Most Popular Content


  • Six smart secrets for nurturing customer relationships
    [ad] Today, we are experiencing a world where behind every app, every device, and every connection, is a customer. Your customers will demand you to be where they and managing customer relationship is the key to your business’s growth. The question is where do you start? Click here to download six free whitepapers to help you connect with your customers in a whole new way.
  • Enterprise IT stories

    • NetSuite in whole of business TurboSmart deal turbosmart

      Business-focused software as a service giant NetSuite has unveiled yet another win with a mid-sized Australian company, revealing a deal with automotive performance products manufacturer Turbosmart that has seen the company deploy a comprehensive suite of NetSuite products across its business.

    • WA Health told: Hire a goddamn CIO already doctor

      A state parliamentary committee has told Western Australia’s Department of Health to end four years of acting appointments and hire a permanent CIO, in the wake of news that the lack of such an executive role in the department contributed directly to the fiasco at the state’s new Fiona Stanley Hospital, much of which has revolved around poorly delivered IT systems.

    • Former whole of Qld Govt CIO Grant resigns petergrant

      High-flying IT executive Peter Grant has left his senior position in the Queensland State Government, a year after the state demoted him from the whole of government chief information officer role he had held for the second time.

    • Hills dumped $18m ERP/CRM rollout for Salesforce.com hills

      According to a blog post published by Salesforce.com today, one of Ted Pretty’s first moves upon taking up managing director role at iconic Australian brand Hills in 2012 was to halt an expensive traditional business software project and call Salesforce.com instead.

    • Dropbox opens Sydney office koalabox

      Cloud computing storage player Dropbox has announced it is opening an office in Sydney, as competition in the local enterprise cloud storage market accelerates.

    • Heartbleed, internal outages: CBA’s horror 24 hours commbankatm

      The Commonwealth Bank’s IT division has suffered something of a nightmare 24 hours, with a catastrophic internal IT outage taking down multiple systems and resulting in physical branches being offline, and the bank separately suffering public opprobrium stemming from contradictory statements it made with respect to potential vulnerabilities stemming from the Heartbleed OpenSSL bug.

    • Android in the enterprise: Three Aussie examples from Samsung androidapple

      Forget iOS and Windows. Today we present three decently sized deployments of Android in the Australian market on Samsung’s hardware, which the Korean vendor has dug up from its archives over the past several years for us after a little prompting :)

    • Businesslink cancelled Office 365 rollout cancelled

      Microsoft has been on a bit of a tear recently in Australia with its cloud-based Office 365 platform, signing up major customers such as the Queensland Government, Qantas, V8 Supercars and rental chain Mr Rental. And it’s not hard to see why, with the platform’s hybrid cloud/traditional deployment model giving customers substantial options. However, as iTNews reported last week, it hasn’t been all plain sailing for Redmond in this arena.

    • Qld Govt inks $26.5m deal for Office 365 walker

      The Queensland State Government yesterday announced it had signed a $26.5 million deal with Microsoft which will gain the state access to Microsoft’s Office 365 software and services platform. However, with the deal not covering operating system licences and not being mandatory for departments and agencies, it remains unclear what its impact will be.

    • Hospital IT booking system ‘putting lives at risk’ doctor

      A new IT booking platform at the Austin Hospital and Olivia Newton-John Cancer and Wellness Centre in Melbourne is reportedly placing the welfare of patients with serious conditions at risk.

  • Enterprise IT, News - Apr 17, 2014 16:39 - 0 Comments

    NetSuite in whole of business TurboSmart deal

    More In Enterprise IT


    News, Telecommunications - Apr 17, 2014 11:01 - 116 Comments

    Turnbull lies on NBN to Triple J listeners

    More In Telecommunications


    Featured, Industry, News - Apr 17, 2014 9:28 - 1 Comment

    Campaign Monitor takes US$250m from US VC

    More In Industry


    Digital Rights, News - Apr 17, 2014 12:41 - 12 Comments

    Anti-piracy lobbyist enjoys cozy email chats with AGD Secretary

    More In Digital Rights