Vodafone Stabilizes Its Margins: Fewer Customers and Subsidies, More Data with Voice and SMS Crash

Day numbers present and accountable for Vodafone, which has presented a few minutes ago the for its first fiscal half results 2012, spanning from April to September, which has managed to maintain its margins despite the storm.

The six months that analyze these results were convulse to the operator, with the withdrawal of subsidies to new customers in April to return to the strategy temporarily in August until two days ago, where there was a real change of strategy.

Because of those ups and downs and changes of new customers grant policies Vodafone has lost 0.7% market share, significantly less than the 4.1% lost by Movistar even worse data than the growth of 0.1% of Orange, 1.4% of Telstra or 3.4% of the MVNO.

Collapse of the voice and SMS, spectacular growth of data

As far as revenues from services of the operator referred to in the results reflect what any might expect us, a collapse of revenues from calls and sending short messages and a spectacular growth in data.

The total service revenue fell 11%, partly because of the current economic environment and elsewhere by the fall in prices of interconnection, while the fixed business revenue grew 6.5% and mobile data a 20.6%.

In this last aspect Vodafone emphasizes the increase in smartphone penetration among its portfolio of clients, a 43.7%, and recruitment rates that integrate voice and data, which reaches 70% among the new clients of the operator.

Less activity but cheap retention and acquisition

These months it has also led to less activity for the operator, with a loss of 756,000 customers, Although 536,000 of them belong to the less interesting and profitable for any mobile operator, the prepaid segment.

The campaign launched by Vodafone in August, returning to subsidize terminals allowed new customers make in a certain way this quarter results, reducing the negative balance of customers for mobile portability in 59,000 customers.

Another aspect that has managed to improve on their behalf the operator has been the money spent to retain customers who paralyzed with abandon them or invested to attract new customers, 25% less with respect to the previous year according to their numbers.

Uncertain future with the new strategy of rates and terminals

Now lie ahead about months of intrigue and uncertainty. Nothing will be during the Christmas shopping, where they sell most of the smartphones sold throughout the year and the main attraction so far to change company.

Guests who attend a physical distributor will find very distinct offerings, with the service focused on their merger, Telstra with the payment in installments, with its subsidies for all Orange and the own Vodafone, with a model of rates and payment a little complicated to understand.

He who writes here bet by one Christmas with specific grants for fear of losing a good time to attract customers with the lure of a smartphone at good price or risk losing them in favor of other operators that if carried out such a strategy.