Broadband News

Vodafone adds 31,000 fixed line customers in latest quarter

Vodafone in its latest set of result for the quarter ending 30th June 2019 has revealed its fixed line broadband customer base is now some 606,000 customers a growth of 31,000 in the quarter, so while growing at a respectable rate the 31,000 is still well down from the 52,000 of 12 months ago.

With the push towards a full fibre future it is possible we may see demand for fixed line services such as VDSL2 stall and potentially the public hold off from even switching providers i.e. people will know full fibre is coming due to the publicity around the shift from a 2033 target to 2025 target and hold off to avoid being stuck in a long contract. 

The last quarter of course saw the big news of 5G shift from being pie in the sky to a service that people can buy and Vodafone has also entered the unlimited usage allowance mobile broadband market with its speed capped products and the result do highlight some of the reasoning behind this.

The new speed-differentiated unlimited data plans are primarily targeted at our existing customer base, respond to customer demand for ‘worry-free’ data usage and create opportunities for ARPU growth. In only two months we have reached an unlimited customer base of over 700,000 SIMs. Customer satisfaction and data usage have significantly increased, and ARPU has increased.

Extract from Vodafone results on unlimited mobile packages

Looking at the split of ADSL and FTTC customers we saw in Q2 2019, we saw 59.8% of speed tests that we identified as the VDSL2 40/10 product, 30.2% on the VDSL2 80/20 service and 10% still on the ADSL2+ service which is no longer sold. The Vodafone Gigafast product is difficult to give a reliable estimate for take-up on since with the small footprint still estimates will have a low degree of confidence, one the footprint reaches the 300,000 to 400,000 premises point we should be able to have some confidence in our estimate. The footprint we currently have on record for the Vodafone Gigafast service is 63,512 premises.

Growing the VDSL2 footprint is still important for Vodafone, hence the latest price offers that under cut TalkTalk who are usually the cheapest VDSL2 service, particularly if you can encourage people onto that service ahead of the Vodafone Gigafast roll-out in a town/city since switching these people to the Gigafast tiers should be a lot easier compared to getting those who also need to decide to switch provider.

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