Vodafone is the third-largest mobile carrier in Australia, being formed as a 50/50 joint venture in 2009 following the merger of Vodafone Australia and Hutchison 3G Australia. The two equal shareholders of Vodafone are the Vodafone Group and Hutchison 3G Australia. Hutchison Whampoa remains the majority shareholder of Hutchison Telecoms, with an 88% stake. Vodafone offers a comprehensive suite of prepaid and postpaid mobile voice and mobile data products to both consumer and business customers. MVNO services are also provided to other telecommunication service providers.
Vodafone Australia is in the process of making a remarkable turnaround in its fortunes. There have been several low points in recent years, all stemming from a disastrous meltdown in late 2010 caused by a poorly managed integration of the Vodafone and 3 networks and systems. This resulted in customers haemorrhaging away from the company, a process that was relentless for many quarters in succession. The loss of subscribers in turn resulted in reduced revenue and greater difficulty in developing an effective investment strategy to overcome the company's problems. This sorry state of affairs also placed increasing strain on the two shareholders, Hutchison and Vodafone Group.
The infrastructure has seen a fundamental overhaul, largely due to the successful refarming of its 850MHz concessions which allowed it to convert 3G to LTE across the country. To some degree this process lessened the disadvantage which Vodafone suffered for not having bid for 700MHz spectrum in 2013, an asset which both Telstra and Optus, as concession holders, have been able to utilise since early 2015 to expand and improve on their LTE services. In a sign of its renewed confidence, however, Vodafone in May 2016 offered to pay the government $594 million for an unsold 2x10MHz block of 700MHz spectrum.
In August 2016 Vodafone Australia began committing major resources to evaluating a potential fixed-line play over NBN. It is also targeting leadership in the next generation of mobile, announcing that it will start running 5G lab trials and demonstrations. Vodafone Australia is also looking to take leadership in the growing Internet of Things space, drawing on the expertise of the Vodafone Group globally.
This report provides an overview of Vodafone Australia, including analysis by BuddeComm, as well as a range of financial and operating statistics.
Companied covered in this report include:
Telstra, Optus, VHA, Vodafone, 3, Hutchison (HTA).