Germany Proves Key Market for Vodafone 3G

July 17, 2005 - source: BWCS

Vodafone has announced a thriving set of figures in its German market. According to the Newberry-based global operator, it now has over 500,000 3G customers in Germany and, perhaps more importantly, they are spending far more than their second generation counterparts.

However, not all of Vodafone's claimed 3G customers are actually using handsets to connect to its network. On closer inspection it becomes clear that 117,000 of its German 3G subscribers are using pc-connection cards and there are, in fact, only 411,000 actual 3G mobile phone users. Whilst this group accounts for only 1.5% of Vodafone' German customers, they are currently generating 4% of the company's revenues there.

Incoming head of German operations for Vodafone, Fritz Joussen, claimed "For us it's already a very good business today." Having splashed out some euros 8 billion (US$9.8 billion) on a 3G licence in Germany in 2000, the company clearly has some catching up to do if it is to make a return on its huge investment.

Vodafone has targeted 10 million 3G customers by the end of March 2006. It believes that this figure will be split evenly between Japan and Europe. However, with its Japanese subsidiary struggling, the company may look to Europe to make up any shortfall. In Germany Vodafone has some 27 million mobile phone customers, just behind the largest operator Deutsche Telekom's T-Mobile.

Vodafone Germany is currently focusing on its 3G services and its new Vodafone Zuhause (Vodafone At Home) product, designed for customers who want to completely replace their fixed-line home phone with a mobile. The company announced that its most popular 3G service to date has been mobile TV, which it launched in November last year.

Users can access up to 15 channels online and four live channels. Vodafone currently has some 100,000 subscribers to the service.