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. During 2013 a number of Crazy John's stores were closed in a cost cutting exercise, with the remainder later branded as Vodafone stores. From late 2011, 3' stopped taking new customers, and in August 2013 the brand was dissolved, with all customers having to migrate to Vodafone to retain services. The 3' stores have also been rebranded as Vodafone.
Network upgrades continue and new sites are being added across Australia as the company ramps up its investment in infrastructure in a bid to retain customers. In 2013 the operator launched LTE services, being able to compete with Optus and Telstra in this market which has tremendous growth potential. These upgrades and new towers have also delivered improved quality bandwidth required to keep up with consumer demand for mobile broadband services, and to address the network shortcomings which have been disastrous for the company since 2011: despite recent network improvements, customer losses have continued into the first half of 2014, though at a lower level than that seen during 2013. The company reported having more than one million 4G devices on its network by March 2014, while it is aiming to provide LTE coverage across the network as soon as practicable, and so take advantage of customer demand for mobile data and broadband services. The company remains at a disadvantage for not having bid for spectrum in the 700MHz band in 2013, while Optus and Telstra will be able to make use of their assets in this spectrum band from January 2015. To counter this, Vodafone plans to refarm its spectrum holdings in the 850MHz band, and so deliver LTE to 95% of the metro population by the end of 2014.
This report provides an overview of Vodafone Australia, including analysis by BuddeComm, as well as a range of financial and operating statistics.
Network upgrades and expansion build network viability though customer loses continue to Q1 2014; revenue still falling; no bid made in 2013 700MHz spectrum auction placing Vodafone at a disadvantage; analysis on the departure of CEO Bill Morrow and the appointment of the new CEO Iñaki Berroeta; financial data for H12014, operating data to June 2014.
Companied covered in this report include:
Telstra, Optus, VHA, Vodafone, 3, Hutchison (HTA).
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