By: Ben Robinson, IntoMobile Saturday, August 9th, 2008 at 9:53 AM
O2UK recently posted financials showing that it has added 275K customers in the last quarter of this year, bringing it’s subscriber base to an impressive 18.7mn – however Telefonica (the owner of the group) has at the same time shown a 48% decrease in revenues….
The addition of 138K contract customers has been largely attributed to the iPhone, giving a result that contract subs are now 38% of the total base. Interestingly, O2 also cites that Prepay subs have also gone contract since the launch of it’s “simplicity” tariff, which has no device, but is a lot cheaper per month.
I would imagine that on the face of things, O2 have got to be happy with these, stats, especially combined with the low churn rates that they have – however, as a component of Telefonica, that’s not the whole picture – Telefonica reported a 48% drop in year on year operating income.
So it’s a mixed bit of news – some good, some bad. But you can but all of the OpCo groups in Telefonica will be especially focussing on maintaining and boosting ARPU, whilst giving special attention to customer retention. That could spell good news for those whose contracts are ending soon – don’t forget to bargain!
Ben is a 10+ year veteran of the Mobile industry – starting his career
when SMS was a still a relatively new concept for most people (!), he has
now consulted on everything from bleeding-edge Mobile content, to the
next-gen accessories you might view it on. As a result he has a broad and deep knowledge in numerous areas of Mobile – from network operators to device vendors, to infrastructure and middleware vendors (not to mention content delivery) – and has worked for companies in all of these areas!
He is based in the UK, a hotbed of activity for mobile, and recently
became a father for the second time – as oppose to in his younger years
when he was happy spend time tweaking all manner of mobile devices to
'nth' degree, he now looks for services and hardware that provide the most efficient, compact, and reliable improvements to his already manic life! It’s his opinion that Mobile solutions should be there to help to make
your life better – if a particular solution (be it service or device)
isn’t doing this, he believes you need to ask the very important question
of why you continue to use it...
His focus at IntoMobile is mainly on Mobile content, services, and
infrastructure, particularly as regards the UK market – and with the
occasional look at devices. Additionally, using his extensive experience
in the industry, he will provide commentary on the industry at large, with
regular (and hopefully thought-provoking) articles.