High Speed Internet Access (HSIA): Mobile Internet

Vodafone posted a $78.2 million loss for the first half of this year and lost 375,000 customers. The poor performance was widely expected after the company experienced a period of customer dissatisfaction due to network problems and poor customer service largely in the period covering late 2010 and early this year.

The losses in the number of customers were mostly in the pre-paid mobile phone segment. The number of post-paid customers stayed virtually unchanged. There were also some changes to reporting of pre-paid which inflated the losses. However, the profit loss was a consequence of Vodafone’s well documented problems.

VHA’s chief executive Nigel Dews, stated that the company is well on the way to fixing the problems experienced earlier this year. Network improvements in terms of new hardware and new radio equipment are about 50% complete with a 1000 new sites rolled out. Customer service issues are being addressed with 300 new customer service staff and 24×7 customer service support. The integration between Vodafone and 3 Mobile has also taken its toll on customer satisfaction and is progressing. The outcome of the improvements have resulted in a downwards trend of complaints.

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