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Vodafone Australia finds success with prepaid market

MELBOURNE, Australia-Latest subscriber figures for Vodafone Australia show the mobile carrier is having some success with its strategy of targeting the prepaid market with an increase of 188,000 new connections in the December quarter, bringing its customer base to about 2.5 million.

Unlike its bigger competitors, Vodafone has removed subsidies on handsets, choosing instead to chase the prepaid segment of the mobile-phone market. Prepaid customers now comprise almost half of Vodafone’s total customer base.

The strategy, though, has meant a slight drop in average revenue per user (ARPU) from A$669 (US$392) in September to A$648 (US$380) in December. The carrier has continued its program of cutting costs and capital spending during December.

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