Vodafone have massively improved their network, and their customer experience is also hugely improved.
However their mobile coverage is still inferior to both Optus and Telstra..
They are definitely winning back customers and I figure this will be shown in the February numbers.
Financially I still have some doubts.. Gaining customers over the iPhone 6 launch often means heavy handset subsidies. These subsidies create costs in this financial half year... so while contracts are profitable over 24 months, the cost of commissions, handset subsidies etc often mean the carrier isn't making money from the plans they sell until they get to month 13-15. I think Vodafones fortunes are turning around... At some point this could be a good buy... My prediction for Feb.... More losses... Due to costs of turning on 4g, handset subsidies and cost of acquiring new customers... Their medium term plan is good and they will turn around at some point...
Long term they have massive issues with lack of spectrum. Telstra will be refarming it's 850 and 900MHz frequencies as well as its 2100MHz If Vodafone doesn't buy up any of the remaining 700 MHz and 2300 MHz spectrum its 4g network will be severely hampered in the future... That is still probably 5 years away... But when it happens their network will be severely lacking again. If they do buy spectrum..... Well that's another billion dollars to the government and will severely affect the bottom line
HTA Price at posting:
6.5¢ Sentiment: None Disclosure: Not Held
