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Thursday, November 11, 2010

Telefonica reports quarterly results for O2 UK

O2Telefónica Europe is the latest company to report its Q3 financial results. It says its European customer base has risen 14% year-on-year to 55 million users, with its mobile customer base up 5.5% year-on-year to 45.9 million.

Organic revenue growth for the nine months to September was up 3.7% year-on-year in constant currency; a figure that would have been 6.4% were it not for mobile termination rate cuts. Revenue growth was driven by the UK and Germany, offsetting what were described as "challenging market conditions" in the Czech Republic and Ireland. Reported revenue reached €11.24 billion (£9.5 billion) in the first nine months, up 11.8% year-on-year, while Q3 itself saw year-on-year growth of 13.7%.

Matthew Key, Chairman and Chief Executive of Telefonica Europe, said "Telefónica O2 UK continued to outperform its peers by focusing on delivering the best customer experience in an increasingly competitive arena – evidenced by O2 retaining its market-leading customer retention rates with contract churn of just 1.2% in the quarter. Revenue growth accelerated to 8.5% year-on-year in local currency in the third quarter to stand at €5.32 billion for the nine months to September. This was driven largely by the increasing demand for high-end smartphones, with 20% of our total base and more than 40% of our postpay customers now using mobile broadband devices. O2's mobile base in the UK (excluding Tesco Mobile) reached 22 million customers, up 4.8% on last year, with net additions of 352,000 in Q3 – an increase of 20.4% year-on-year. That's nearly 70% of new customers were in the contract segment is testament to our ongoing success in attracting high-end users. O2 is now the UK's leading service brand, serving more paying customers on an ongoing basis than any other brand."

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Opinion Articles

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Mark Bridge writes:

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Physician uses cell phones to bring health care to the poor

Natalia Ardanza of voanews.com writes:

In Africa there is another use for mobile phones. Public Health workers in Kenya are now using mobile phones to gather health information from patients in remote areas and upload it to the internet for instant analysis at distant centers. And it is all happening thanks to Dr Joel Selanikio.

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Making dumb touchscreen phones was a smart move

Mark Bridge writes:

I remember a report from last year that said ‘non-smart’ touchscreen handsets – generally those without a popular operating system – would be bad news for mobile operators.

Conventional touchscreen smartphones tended to result in higher-than-average ARPU thanks to their early-adopting tech-loving users, their web-friendly browsers, their email programs, their app-friendly operating systems and their fast 3G connectivity. However, dumber touchscreen devices – those with a manufacturer’s own proprietary OS and perhaps a clumsier browser – could generate 23% less ARPU than smarter phones. So, if touchscreen dumbphones weren’t good for networks… and weren’t really good for consumers either… manufacturers wouldn’t really bother with them. Right?

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"Hello Nexus One" I say...

James Rosewell writes:

Mark’s been encouraging me to write an opinion piece on the Nexus One for the last few days and I’m finally putting fingers to keyboard to share my experiences. It’s taken so long because this phone has so many features. On a positive note I could go into details about the gorgeous screen, the Android Marketplace that will out-sell Apple’s over the next 18 months, the built-in satellite navigation service and the speedy processor that makes everything run smoothly in real time. Or on a less positive note, the touch screen keyboard that sucks (think carefully about this if you’re a heavy texter or emailer, it’s even worse than the original iPhone), the lack of ActiveSync for Calendars and Tasks, no support for WMA music files or the clunky zoom functions on the web browser.

However I’m going to focus on voice dictation. Nexus One is the first phone I’ve used with this feature.

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The Amazon Kindle prepares to fight the Apple iPhone and Tablet

Mark Bridge writes:

Here’s a curious thing. Firstly, Amazon creates the Kindle. It starts selling the Kindle in the USA with a mobile deal that lets users download electronic books and newspapers wherever they are. Then it starts selling the Kindle to us in the UK, although – hang on a moment – it’s not talking about a UK mobile deal. Instead it still seems to be ‘roaming’ from the AT&T network. Next comes the larger-screen Kindle DX – also roaming away when it reaches our shores. And now Amazon is talking about third-party downloadable applications for the Kindle. Yes, a mobile device with downloadable apps. Hold that thought; I’ll be returning to it.

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