Vodafone £14.9 Billion Loss
Vodafone has just reported a massive £14.9 Billion loss together with planned staff cuts.
Why is this when handset sales are actually at an all time high and projected to go higher? Why is this when the latest handsets can do much more and have the potential to encourage people to use more services and hence spend more?
According to Vodafone, it’s due to "the intense price competition and regulatory scrutiny"… which will… "continue to affect all mobile telecoms companies."
Price competition? I don’t think so. I would say pre-pay UK tariffs are actually higher than in the past. OK, they include more airtime and text messages. However, the amount paid every month is definitely higher. Regulatory scrutiny? Maybe. There has been a recent EU assault on roaming call rates.
From my very limited view as a mobile developer, I see Vodafone’s loss as an indication of how badly network operators have exploited 3G. They have failed to make the most of the potential offered by today’s advanced mobile phones.
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