Vodafone Romania sees service revenue decline after drastic cut in termination rates

Service revenue of telecom operator Vodafone Romania decreased by 5.8 percent on an organic basis in the third quarter of the fiscal year 2014-2015, compared to the same quarter of the previous year, following a 69 percent decrease in mobile termination rates (effective April 1^st, 2014), according to key performance indicators for the quarter ended on December 31^st, 2014.

Excluding the impact of mobile termination rates decrease, Vodafone Romania’s service revenue grew by 8.8 percent, as compared to same period of last year, on an organic basis.

Vodafone had 8,604,569 customers at December 31^st, 2014, out of which 8,016,023 mobile customers, representing an increase of 97,130 total subscribers, compared to the previous quarter.

The number of customers includes mobile services users, fixed voice and Internet users and m2m.

Vodafone Romania’s mobile ARPU reached EUR 6.2 over the last 3 months.

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At December 31^st, 2014, mobile postpaid customers represented 42.1 percent, while prepaid customers 57.9 percent of the total mobile base. Mobile postpaid base as a percentage of total mobile base increased by 2 percentage points as compared to same period of last year.

Data usage increased by 76.6 percent for the quarter ended December 31, 2014, compared to the same period of last year.

“Our focus on mobile data adoption, smartphone penetration and on providing our users the best network experience resulted in a growth in our customer base, during the past quarter. Our extended 4G coverage also brought an increase in the number of 4G customers  in the overall base over the past quarter. Since the launch of Supernet™ 4G, meant to provide our users with the best experience on our network, we have seen that the data traffic increased by over 75 percent, while 4G data usage also continued to grow during the quarter,” said Ravinder Takkar, CEO, Vodafone Romania.

Smartphone penetration increased by 6 percentage points in the quarter ended December 31^st, 2014, compared to same period of last year.

Smartphone sales increased by 41 percent, compared to the same period of last year and by 29 percent versus the previous quarter, out of which 4G smartphones sales increased by 78.8 percent.

Otilia Haraga