Vodafone customer base climbs past 100 m

LONDON: Vodafone Group Plc, the world's largest mobile phone operator, said

on Tuesday its customer base had climbed past 100 million worldwide -- a

milestone that is also viewed as marking the end of a golden era of growth.

"In this financial year overall, customer growth has been stronger than

anticipated and the recent Christmas quarter additions were in line with our

expectations," chief executive Christopher Gent said in a statement.

But a customer base of just over 100 million would imply that Vodafone added

only around five million new customers since September 30, or about five per

cent growth -- a far cry from the 50 per cent subscriber growth it had notched

up year after year.

Vodafone's registered customers had risen 15 per cent to 95.6 million in the

six months ended September 30 last year. Tressan MacCarthy, telecoms analyst

with SG Securities, said Vodafone's statement seemed to be consistent with

market forecasts for growth of around 3.5 million to four million new customers

in the third quarter ended December 31.

"I can't believe anyone has high hopes for the third quarter," she

said, adding that the entire mobile phone industry faced saturated markets and

slowing growth in western Europe. Mobile phone operators are now focusing on

maximising the amount of revenue they earn from each customer as they adjust to

slower growth in subscriber numbers.

Average revenue per user (ARPU) has now become the benchmark for mobile

operators, rather than pure growth in customer numbers. Vodafone shares were

virtually unchanged at 163-1/2 pence on Tuesday morning. The stock has fallen

over seven per cent so far this month, in line with the broader European telecom

sector.

Shares in mobile phone firms, including handset manufacturers, have all come

under pressure as investors brace for what are expected to be another set of

poor quarterly results. Shares in Nokia, the world's largest mobile phone maker,

fell six per cent on Monday after an investment bank downgraded the stock ahead

of Nokia's fourth-quarter earnings on Thursday.

Vodafone, which is due to report its third quarter customer numbers on

January 29, did not disclose its average revenue per user (ARPU) for the quarter

on Tuesday.

Vodafone has been feeding off the text message boom, boosting its share of

lucrative non-voice revenues earned on networks in its high mobile penetration

markets. ARPU stabilized in the last quarter, halting a prolonged decline.

(C) Reuters Limited.