UK mobile customer base saw its first quaterly decline for two years in Q1 08, losing on 119k subscribers to finish the quarter on 70.67million. The net declines was seen with O2, T-Mobile, Virgin and Tesco suffering widespread losses. Tesco lost a maximum of 100k, Virgin lost 68k, T-Mobile 71k and O2 79k. The highest figures for net additions of 114k were achieved by Orange, Hutchison came next with 75k and Vodafone gained 41k. Similar subscriber loss was seen in the Q1 07, but Vodafone’s strong performance, 723k net additons, ensured a growth in the total customer base.
On an annual basis, the Q1 08 loss was counterbalanced by a potent net additions of 1.89 million in the Q4 07, leaving the annual growth at 5.0%, almost exactly the same rate as the preceding 12 months (4.9%). However, no consistency could be seen on the operator level, Virgin, after seeing a growth of 3.2% in the previous year, it was down by 0.9% to 4.42million. O2 recorded a gain in the subscribers on year-on-year basis, but it’s growth rate of 4.7% was less than half the last year’s figure of 10.2%. Tesco’s growth rate halved from 35.9% to 17.9%, taking quater-end customer base to 1.65million.
T-Mobile and Orange, on the other hand, improved strikingly on the 0.9% annual growth in the Q1 07 by both of them. T-Mobile grew to 10.24million, a growth of 4.2%, while Orange grew at 4.4% to 15.76million, but did not advance Vodafone’s lead gained in the Q1 07.
Vodafone, the most consistent performer in the market, edged it’s 6.9% growth rate up to 7.7%, finishing the quater 0.85 million ahead of Orange on 16.6million. O2 scored a 20.05 million subscribers to become the market leader with quater-end.
Tesco has chosen struggling Cable&Wireless to be its first exclusive provider of telecoms, signing a deal worth £100 million (€126 million) over five years. The contract involves connecting 1,800 Tesco sites in more than 14 countries including China, India, Japan, the US, Ireland and Turkey.
Cable&Wireless will implement a VoIP platform on the network, which should reduce Tesco’s voice and data call costs, as well enabling the introduction of a Fixed Mobile Convergence (FMC) service for Tesco employees.
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EBT Mobile, a China-based retail chain selling mobile phones and related products and services, Wednesday announced its Chinese subsidiary, EBT International Trading (Shanghai) Co. Ltd. expects, subject to completion of final contractual arrangements, to open 7 mobile phone stores in the next few weeks within hypermarkets operated by Tesco Hymall, Tesco plc’s vehicle for expansion into ChinaThe first EBT Mobile store within Tesco Hymall has opened Wednesday in Shanghai.
As part of Tesco plc’s international expansion strategy, it has acquired 90% of the equity of Hymall from Ting Hsin, one of China’s leading consumer food and beverage producers.
The 48 existing Hymall hypermarkets in China are mainly located in the east, north and northeast regions. Tesco plc has forecast that this number will increase to 56 by February 2008, as part of its Asian expansion policy.
The agreement with Tesco Hymall is an important step and the latest move in EBT Mobile’s strategy to enhance its expansion by rolling out stores within leading Chinese hypermarket chains. EBT Mobile already has similar agreements in place with Carrefour, Metro, Lotus, RT-Mart, Wu-Mart, Auchan and Trust-Mart (35% owned by Wal-Mart).
Zhang Ge, CEO of EBT Mobile, said:”EBT Mobile is delighted to be selected by Tesco Hymall as its mobile partner. Tesco has an outstanding international reputation and I believe China will become an important market for the U.K. retailer following its success in other Asian markets. Working with Tesco Hymall is another major step in our strategy to develop key relationships with world class hypermarket groups operating in China.
“EBT Mobile can leverage its competitive advantage of products, management and capital to establish an even bigger platform, starting in our home base of Shanghai. EBT Mobile will provide Tesco Hymall’s customers with a wide choice of mobile telephone products and services, while benefiting from a cost effective roll out of stores within the Tesco Hymall stores.”
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UK mobile operators suffer a loss of 119k subscribers in Q1 08 (UK)
