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Vodafone growth steady in competitive market

Media release

31 May 2006

Vodafone growth steady in competitive market
Usage critical to future growth in highly penetrated mobile market

Quarter ended 31 March 2006

Net customer additions 44,000
Total customer numbers 2,068,000
Market share 52.5%
Voice minute usage on network 602 million
Average Revenue Per User**
Total 51.2
On Account 138.5
Prepay 25.7
**reported on a three-monthly rolling basis

Vodafone New Zealand continued to grow its customers and revenue in the financial year to 31 March 2006 while introducing significant price cuts to voice calls and data, CFO David Sullivan said today.

Vodafone’s fourth-quarter results, released overnight, show its continued growth in a highly competitive market and despite an uncertain regulatory environment.

Sullivan says Vodafone continues to focus on providing compelling services, at the right price, so that New Zealand mobile users get better value for a lower cost.

“Customers are getting more value from our services and paying less for them, thanks to some significant reductions in voice and data pricing over the last year,” he said.

“Plans like You Choose, which enables you to custom-build a plan, are putting money back into the pockets of many of our customers. Our analysis shows that business customers who have switched from Mobilise to You Choose plans are saving 25-34% on their bills. Customers including a 1000 txt add-on in their plan, at $9.95, are saving a staggering 95% on the standard price.”

Sullivan says he is pleased that Vodafone has sustained its growth and met its performance targets for the year, despite the big price reductions and promotions like free txt weekends and the Let Yourself Go capped calling offer.

Highlights of the past 12 months include the launch and fast uptake of 3G products and services, the expansion of mobile content on Vodafone live!, and recently announced plans for 3G Broadband delivered on Vodafone’s mobile network.

“We now have over 103,000 3G customers, which has exceeded our expectations. Customers are really embracing 3G services. The introduction of live TV news bulletins delivered to mobiles, as well as video calling and full music track and music video downloads, have been hugely popular.”

Demand for data has also risen, spearheaded by the new 3G services and price reductions. Data services include access to Vodafone live!, the internet, email, intranet and business applications on mobile devices, as well as Vodafone’s high-speed data card, which provides wireless laptop connectivity.

During the year, Vodafone slashed the flat rate to data roam on its global data network by two-thirds to $10 per megabyte. It recently dropped the price of 1GB of data per month to $49+GST, an offer which makes mobile solutions a compelling alternative to fixed-line options.

The 2005-2006 financial year saw Vodafone reach 2,068,000 customers – up 9.3% from a year ago. The company continues to lead New Zealand’s mobile market with a 52.5% market share.

Comparative figures

In the quarter to:

31 March
2005 30 June
2005 30 September 2005 31 December 2005 31 March 2006
Net customer additions*
60,000 38,000 27,000 68,000 44,000
Total customer numbers 1,891,000 1,929,000 1,956,000 2,024,000 2,068,00
Market share 55.4% 54.7% 54% 52.9% 52.5%
Voice minute usage on network 539 million 540 million 559 million 616 million 602 million
Average Revenue Per User
Total 52.5 50.7 51.0 51.2 51.2
On Account 143.4 138.9 139.7 137.2 138.5
Prepay 27.8 25.9 25.6 25.0 25.7


Vodafone’s net customer additions for the quarter excludes telemetry, machine to machine connections, other data devices and customer adjustments.

Vodafone is not able to provide additional details of its financial performance for the 2005-2006 financial year. More information will be available following the filing of its annual report with the Companies Office.


Vodafone New Zealand highlights 2005/2006

- We launched 3G! A revolution in the way New Zealanders use their mobile phones with 3G enabled services such as Video Calling, MusicStore, Mobile TV and Vodafone live!

What we said: "This marks a fundamental change in mobile communications as we step into an era where customers can turn their mobile into a one-stop-shop for entertainment, information and doing business remotely." (Russell Stanners - CEO)

- We launched ‘You Choose’ - a radical new pricing model that for the first time enabled customers to tailor-make a plan to suit their specific needs. On Account Vodafone customers are now able to choose from one of six core calling plans, with no restrictions on who they can call or when the allocated minutes can be used. Customers are able to complement the core plans with their ideal pick-and-mix combo of TXT, video calling, international calling and nights and weekend minutes.

What we said: “The great thing about these plans is that you’re able to swap around your add-ons every month if you want to. You might up your TXT add-on if you’re holidaying in January or increase your international calling minutes if your partner is heading overseas with work for a month.” (Larrie Moore - General Manager Consumer Marketing).

- We slashed the cost of 3G data roaming on our global data network by two-thirds to $10 per megabyte - the same amount it costs casual users to access the data network in New Zealand.

What we said: “Only Vodafone's global data network provides customers with seamless access to their information both in New Zealand and around the world. The experience is the same whether you're sitting sipping a latte in Auckland or throwing back shots of espresso in Milan.” (Fraser King - Data Products Marketing Manager).

- In a New Zealand first Vodafone, in partnership with Prime News, started delivering “Prime News: First at 5.30” daily to 3G customers as part of the Sky News streamed channel.

What we said: “For the first time we can now offer a whole show to watch on your mobile at the same time it screens on the TV network. The fact that it’s a news show is particularly relevant in today’s fast paced world as many of us need to keep up to date but don’t often make it home for the news.” (Tim Nichols – Content Manager).

- We surpassed the two million customer mark in January heralding a significant milestone for Vodafone customers.

What we said: “This year Vodafone celebrates seven years as New Zealand's mobile market leader. Over that time we have invested $2 billion in New Zealand and driven the growth of the market. It shows that Kiwis embrace mobile as their preferred way to communicate.” (Phil Patel - Director of Business).

- We launched JASJAR – the first 3G mobile business device which converges mobile with laptop. This allows users to work on Word or Excel documents, view PowerPoint documents or PDFs, send and receive email at the same time as talking on the mobile or conducting a real time video call with another person on the other side of the world.

What we said: "It is unique to Vodafone's 3G [service] to be able to talk to a colleague from your smart device at the same time as editing a document or seeing their face while you are talking to them." (Phil Patel - Director of Business).

- We launched the In Case of Emergency (ICE) initiative, encouraging people to enter next of kin details into their mobiles in case of emergency. Emergency services can then quickly contact victims' family members by accessing their mobile phone directories.

What we said: "This really reinforces the valuable and positive role mobiles can play in people's lives." (Evangelia Henderson - General Manager for Brand).

- We announced a three-year partnership between Vodafone and the Royal New Zealand Foundation of the Blind. The partnership makes Vodafone the “lead partner” in delivering Adaptive Technology to the RNZFB’s 11,500 members, and is supported with $800,000 of funding from the Vodafone New Zealand Foundation

What we said: “We want to be involved in the RNZFB’s activities and understand how information communications technology can make a difference to the lives of their 11,500 members.” (Russell Stanners – CEO).

- We launched Vodafone One Tribe - the first official supporters club for the Vodafone Warriors.

What we said: “ During the season we will reward members of Vodafone One Tribe with exclusive events, competitions and experiences with the team that will blow people away.” (Evangelia Henderson - General Manager for Brand).

- We sponsored Vodafone Surf Sessions. Hot off the ASP World Championship Tour (WCT), four of the world’s top surfers (Andy Irons, Sunny Garcia, Mark Occhilupo and Joel Parkinson) came to our shores to take on four of New Zealand’s best; Daniel Kereopa, Maz and Jay Quinn and Bobby Hansen.

What we said: “These international surfers are household names and we are extremely lucky to have the chance to watch them compete right in our own back yard – at our West Coast beaches.” (Brendon O’Connor-Head of Sponsorship).

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