EE financials show boost in contract customer numbers
EE, the mobile network operator formed from the merging of Orange and T-Mobile, have announced their first quarterly financial results since the introduction of their 4G LTE service. With this, it might be expected that the number of mobile customers connected would have increased, but the company actually saw a 2.5% decrease - 686,000 less customers than at in the same quarter the previous year (Q4 2011). The majority of customers shed have been pre-pay mobile (a decrease of 10.3%) whilst postpay (contract) mobile increased by nearly 6%.
Fixed broadband customers have seen a dramatic decline over the last quarter with numbers down 29,000 to 698,000 from 720,000 in September 2012. The reduction has been put down to the withdrawal of a free broadband promotional tariff which has decreased the number of new broadband customers taking up the service.
"In the past year, we delivered solid financial performance, underpinned by good progress integrating the business and success in attracting high value customers. At the same time, we built a strong platform for growth, launching a new company, new network, new customer brand, new retail estate and being the first to provide UK consumers and businesses with 4G mobile services alongside fibre broadband."Olaf Swantee, (CEO) EE
With UK 4G coverage standing at 43%, they are looking to increase coverage to 55% of the population with 65 towns and cities destined to get access to the faster speeds 4G offers by June 2013. Competition will be hot on their heels once the mobile auctions have been completed and other mobile network operators are likely to bring in some attractive pricing to help erode the advantage that EE have had to date.