Feeds

mmO2 posts 'strong' Q3

Users, ARPU, SMS activity up

  • alert
  • submit to reddit

The essential guide to IT transformation

UK-based mobile phone network mmO2 today announced "strong" third quarter, pointing to its latest customer and average revenue per user figures as evidence.

During the three months to 31 December 2004, mmO2's O2 networks in the UK, Ireland and Germany were joined by 1.18m new customers, taking the group's total to 23.2m.

In the UK, some 360,000 punters signed up with O2, taking its total customer-base here to 14.2m people. The parent company was quick to point out that a further 250,000 existing O2 customers bought additional SIM cards, a largely UK-only phenomenon dubbed 'spinning'. It affects other networks too, and mmO2 CEO Peter Erskine challenged them to separate out such additional purchases from their overall new-user figures. "Net adds are not all new customers," he emphasised.

mmO2 similarly excluded 500,000 users contributed through its 15-month-old partnership with retailer Tesco, since they are not billed by the network.

Of the 360,000 new users signed in Q3, almost 94 per cent were pre-pay customers - just 22,000 people joined the network on contracts. That figure is down significantly on previous quarters - 127,000 in Q2, for example. Erskine said the dip was largely due to UK telco BT's replacement of O2 UK with Vodafone as its mobile telephony partner. The big decline shows just how many users BT was bringing to O2 and how many it will now presumably be putting Vodafone's way.

Still, the overall number of users joining O2 UK's network has been increasing over the past four quarters - a good sign, said Erskine, given that "churn is up in a competitive market" - and with it the blended average revenue it takes from each of them in a quarter, to £283, from £264 in the year-ago period.

The blended ARPU grew year on year in Germany and Ireland, Erskine said, to €370 in Germany and €564 in Ireland. These countries contributed 729,000 and 91,000 new customers, respectively, to the group during Q3. Their total customer bases are 7.4m and 1.5m, respectively. The Irish operation demonstrated "encouraging performance", Erskine said.

Data traffic

Erskine said that data was the key ARPU growth driver during the past 12 months, with the contribution of voice remaining roughly the same through the last four quarters, but data ARPU growing almost 11 per cent.

But what he was quick to point out that non-SMS traffic is making an increasing contribution to the total, it remains just 11.2 per cent of the total data service revenue taken in Q3 FY 2004/2005, up from nine per cent in Q4 FY2003/4. Data traffic accounts for 23.9 per cent of O2's total service revenue.

Non-SMS traffic includes all content downloads, browser traffic, MMS, email etc., indicating each of these has a long way to go to individually contribute significant sums to mmO2's top line. Some 3.8bn SMS messages were sent across the O2 networks in Q3, compared to just 20m MMS - 0.5 per cent of the total.

Erskine said the network is standing by is previous forecast of 12-15 per cent revenue growth in the UK for the full year, figures for which will be published in May, with Germany seeing "strong" growth but a more modest increase from Ireland. ®

Related stories

T-Mobile flourishes in the US, wilts in Germany
First MVNO hopeful throws hat into Irish ring
EU rules against Voda/02 Irish duopoly
mmO2 dials up change for small investors
O2 falls for Blackberry 'Charm'
Tesco claims 500,000 mobile sign-ups
Mobile operators put the squeeze on retailers - report
O2 to bring i-mode to UK in 2005

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?