Vodafone Australia chief executive Bill Morrow says customer losses will stop in 2014. Photo: Sasha Woolley
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Vodafone Hutchison Australia chief executive Bill Morrow has declared victory in a war of words between his company and Australia’s largest mobile carrier Telstra, as they compete on the speed of their mobile networks.
Mr Morrow told ABC’s Inside Business program on Sunday that Telstra had “backed down” over legal threats sent to Vodafone in June, regarding claims that the latter had the fastest 4G mobile network in all five capital cities.
“We disputed that, we explained why, they backed down from it and it’s a fact Vodafone Australia does bring consumers the fastest 4G around the five capital cities of Australia,” Mr Morrow said on Sunday.
“It’s dead, they backed off and we’re comfortable with where we are.”
A Telstra spokeswoman could not immediately confirm Mr Morrow’s claims.
4G mobile services are a key technical and marketing battleground for Australia’s telecommunications companies as they fight to win smartphone customers.
Telstra and Optus have also sparred over each other’s marketing claims about 4G networks.
Telstra has focused on marketing the reach of its 4G network, as it looks to expand the network to reach 85 per cent of the Australian population by the end of the year.
Vodafone’s claims are based on the type and amount of radio spectrum it lays claim to in capital cities, allowing it to provide faster mobile speeds to compatible smartphones compared to Telstra’s existing network.
2014 turnaround expected
The company, which has lost more than 1.5 million customers since 2011, has pinned its hopes on the speed and quality of its network to stem losses.
Mr Morrow said on Sunday that he expected further losses for the remainder of the year, with a turnaround from 2014 onwards.
“There’s about a two-year lapse between fixing fundamental issues, getting the brand perception shifted and getting back into a positive customer growth situation,” he said.
Mr Morrow, who has previously led US mobile carrier Clearwire and Vodafone’s former Japanese subsidiary SoftBank, joined Vodafone Hutchison Australia to revive the company.
But he said that a turnaround would take much longer than the 12 to 18 months he expected.
“I’m ready to make a commitment much longer than I originally intended,” he said.
Mr Morrow has already garnered greater confidence from joint owners Vodafone UK and Hutchison Whampoa to invest further in Australian operations. But he said he had put in a bid for a share of the £6 billion ($10.2 billion) Vodafone UK is planning to invest globally after the $130 billion ($138 billion) sale of its share in US carrier Verizon Wireless.
“We’d like some additional money to actually go in and retrofit a number of the IT systems because we think there’s a different level of sophistication we can apply, to give our customers even better service, and that’s the submission we’ve made,” he said.
From: http://www.afr.com/p/technology/telstra_backs_down_on_vodafone_claims_NpFv63MS0zhdPGoYJffetO
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