Feeds

How to lose 375k customers the Vodafone Hutchinson way

When two companies don't make it right

Top 10 endpoint backup mistakes

In what comes as no shock to industry or consumers, Vodafone has managed to hemorrhage 375,000 Australian customers in the first six months of the year.

Ongoing network coverage issues, poor customer service and a class action from disgruntled customers have pummeled the mobile carrier’s consumer reputation causing the mass exodus.

Hutchison Telecoms, the 50 percent stakeholder in Vodafone Hutchison Australia (VHA) has reported a loss of $AU78.2 million for the first half of 2011 on the back of the Vodafone network fallout. Hutchison's share of VHA service revenue decreased by 3 per cent year-on-year to $AU1.039 billion, and half year operating margin was down 6.6 per cent year-on-year to $AU774 million.

VHA recorded a fractional increase in the postpaid handset and mobile broadband base, although the total customer base declined by 375,000 to 7.2 million customers at 30 June 2011.

HTA chairman Canning Fok said that the struggling merged entity had its full support and has accelerated investment in the network to fix technical concerns and improve its customer service performance. "We are confident that this will support VHA's return to profitable growth," he said.

To support network improvement plans, HTA's share of capital expenditure in the first half of 2011 was $AU162.1 million, 30.6 per cent higher than the corresponding period in 2010. VHA CEO Nigel Dews said "our focus on network and service improvements is having a positive impact on customers and operationally, we have turned the corner".

The carrier claims it is ahead of schedule in the delivery of its network revamp plans announced at the end of 2010. By the end of the year it expects to have built 1,000 sites on Vodafone's new 3G 850MHz network; upgraded 1,330 sites on the existing 2G and 3G networks; replaced equipment at more than 4,000 sites; and added 500 new sites across the country to improve coverage, signal strength and overall network quality.

VHA has also launched initiatives to improve customer service including adding 300 Vodafone customer service and ramping up its social media presence as customer service response. "We learned a lot the hard way in social media and we've responded. It has gone from being an issue and a weakness at that time, to being a real strength," Dews said. ®

A new approach to endpoint data protection

More from The Register

next story
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

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.
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.
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.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?