Feeds

How to lose 375k customers the Vodafone Hutchinson way

When two companies don't make it right

Secure remote control for conventional and virtual desktops

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.