Q2 2019/2020 Vodafone results published
The latest Vodafone results for the period ending 30th September 2019 are now available and in the UK fixed line broadband world the big news is adding 61,000 customers in the last quarter, which is the highest growth since Q4 17/18 when they added 68,000 fixed line customers.
The total number of fixed line customers stands at 667,000 in the UK and if the aggressive pricing policies continue the growth should continue.
The downside is that fixed line revenue in the UK actually decreased comparing H1 19/20 when the revenue from fixed line services was £666 million but with less customers H2 18/19 generated £707 million of revenue. So £41 million revenue even though there are an extra 92,000 customers.
The Gigafast network being built by CityFibre passes some 117,704 premises today, with majority of the increase in the last week being down to rapid growth in the Bournemouth area as the network is mirroring the old Gigler FTTH network. To date the overlap with the Openreach FTTP network is very small at just 1,112 premises but as CityFibre expand in places like Coventy and Milton Keynes this is likely to change. The CityFibre network is only an exclusive access arrangement for a limited time.
The big news on Monday was news of volume based deal with Openreach to sell Openreach FTTP in Bristol, Liverpool and Birmingham under the Vodafone Gigafast brand. No pricing has been announced but it is not impossible that we might see identical pricing to the CityFibre areas if Vodafone is keen to grow its customer base quickly and the deal was particularly good from Openreach.
The current total Openreach FTTP footprint for these three urban areas is 201,041 premises and is expected to grow to around 500,000 premises by the end of March 2021.
Focusing on specific areas will allow Vodafone to send its Gigafast publicity machine to the areas to ensure that the general population becomes area of the new option and if they can undercut both BT and Virgin Media winning customers should be fairly easy.