Feeds

Everything Everywhere rushes into third quarter

Seems like only yesterday it was only Q2

The essential guide to IT transformation

Less than a month after posting its Q2 results Everything Everywhere has put out Q3 results, this time showing marginal growth in revenue and customer numbers.

Everything Everywhere hasn't been around for long, and last month's figures were the first the joint company has published. These Q3 results put it back on schedule and show that the combined company is doing well, with more contract customers and marginal increases in overall subscribers and revenue.

That revenue is up the smallest smidgen (0.1 per cent) to £1.8bn compared to last year, and customers up 1.4 per cent to 27.9 million. Because these aren't accounts and merely a statement of trading, there's no figure for profit on that revenue, but there are some disturbing trends in the figures.

Everything Everywhere has got more customers onto contracts, which is a good thing 'cos contract customers have a higher ARPU (Average Revenue Per User) - basically they spend more money. Contract customers at Everything Everywhere are spending £35.50 a month, compared to the £7.30 the average pre-paid customer is coughing up. Much of that is swallowed by the handset subsidy, especially when 75 per cent of new contracts are for smartphones.

But both those figures are down on last year, and the average ARPU is down by four per cent to £19.30. Even more worrying is that almost 74 per cent of that ARPU is still coming from voice calls, when most operators are pushing to get 30 per cent of their revenue from data services these days.

Data now makes up the majority of traffic carried by network operators, but data use is being subsidised by the cost of voice calls, which is why operators are so worried about VoIP. Without the expensive voice calls operators will have to start charging data users proper rates, and none of us wants to see that happening. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Déjà vu: Virgin Media jacks up broadband prices
Screw copper phone lines, we're UNIQUE, bleats telco
NBN Co claims 96 mbps download speeds for FTTN trial
Umina trial also delivers 30 mbps uploads, but exact rig used not revealed
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
EE: STILL Blighty's best mobe network, says 'Frappucino' Moore
Fresh round of network stats fisticuffs possibly on the cards here
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
Google's so smart it's discovered SHARKS HAVE TEETH
Congratulations, world media, for rediscovering submarine cable armour
prev story

Whitepapers

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.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
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?