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3 Had No Impact on Sales Says MMO2

July 24, 2003 - source: BWCS

UK-based mobile operator mmO2 reported solid subscriber growth in the last quarter, adding 504,000 customers across the UK, Germany and Ireland. The former BT mobile division has issued a set of performance indicators for the three months to June 30, which also showed increases in ARPU and mobile data usage.

While there has been concern about the effect of 3’s aggressive price cutting strategy, mmO2 CEO Peter Erskine was quoted by the Financial Times as saying, “So far, there has been no noticeable impact on us from 3 and we have no plans to react.”

In the UK, mmO2’s main market, the operator added 258,000 subscribers in the three months to June and reported a blended ARPU increase of 2.8% to £254. Subscriber numbers in Germany went up by 225,000, with a 2.4% ARPU increase to €348, while Ireland managed to add 17,000 customers, reporting a stagnant ARPU at €545. mmO2’s total customer base in the three markets stands at 18.7 million.

On a 12-month basis, mobile data as a percentage of total service revenues increased from 17.4% to 18.2%, thanks to a higher volume of text messages sent, up 2.8% on the previous quarter to 2.4 billion. However, while Erskine stated that the company was committed to a “strategy of continuous operational improvement [and] mobile data leadership”, he admitted that the share of mobile data revenues actually fell in the quarter, which he attributed to “strong growth in voice revenues”.

The mmO2 chief reiterated that the operator was not in merger talks with Germany’s E-Plus, a KPN subsidiary, though he said that “lines of communication were still open.”

 


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