O2 eats into Vodafone’s Pie

Following Vodafone’s fall from the global number one spot earlier this year, the company is also losing out in the UK market. Voda’s retail revenue has slipped to leave O2 picking up the slack.

In an Ofcom report published this week Vodafone were down £56m in the first three months of this year from it’s peak in 2005. On the flipside, O2 have increased their average retail revenue to sit only £32m behind Vodafone, compared to £144m last year.

As mobile voice revenues fall 10% per year Vodafone are looking to replace that with new initiatives such as fixed-line services and broadband.

Vodafone are also losing out on call volumes, 4.7bn minutes from January to March compared to O2’s 5.1bn. Although Voda top the tables when it comes to number of monthly subscribers, O2 have grown their pre-pay customers to come out ahead on total subscribers, growing 13.6%. Whereas Vodafone lost nearly half a million subscribers growing only 5.9% over the past year.

The story is the same when Orange and T-Mobile are under the microscope.

T-mobile grew by over 10 percent over the past year to Orange’s 4%. T-mobile’s retail revenue grew £50m, whilst Orange lost £15m during Q1 this year to put them £11m under where they were this time last year.

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