Vodafone adds record number of broadband customers in quarter
Vodafone fixed line broadband and particularly its VDSL2 (Superfast 1 & 2) services have been for most of the time in the last few months the cheapest services and therefore no real surprise that this is reflected in record growth for the provider in its latest financial results.
Vodafone in the UK now has some 382,000 broadband customers, up by 66,000 in Q4 2017/18, Q1 added 29,000, Q2 added 33,000 and Q3 added 38,000. The reason for this growth seems pretty straightforward aggressive pricing and to a lesser extent we suspect the speed guarantee letting people claim 15% back each month if the service connection speed is lower than the 25 Mbps or 55 Mbps on the Superfast 2 service.
The success in the home broadband arena is very much a numbers game and if Vodafone is to reap the benefits with its CityFibre partnership which is set to offer FTTP to 1 million premises by 2021 then we are expecting agressive pricing to get existing home broadband customers to transfer to the full fibre network and also tempt people away from other providers and we will not be shocked at all if there is a Gigabit service available for below £30 a month to ensure a rapid take-up and as with many services in the past once we are all hooked the pricing will then start a steady annual increase cycle. The FTTP roll-out is underway, but it looks as if they are going for a big launch in each coverage area rather than a street by street approach, so coverage levels are likely to jump overnight.
Vodafone is the biggest household name broadband provider in the UK to not be marketing an ADSL2+ service, though it did do for a while when it launched its broadband service, but from analysis of the speed tests we see with just 11.5% of tests on their ADSL2+ service it seems likely the reason for it being dropped was a mixture of lack of popularity and the shift towards the speed guarantees.