O2 losing customers and revenue in new regime
THE company behind teleco O2 said it lost customers and revenue during the first quarter of the year as regulatory changes began to bite.
Telefonica Ireland said service revenue fell to €177.8m between January and March, down from €191m in the final quarter of 2010 and off nearly €19m from a year earlier.
The company blamed the loss on cuts in mobile termination rates charged by O2 to other operators to carry calls on its network in line with changes made by regulators as well as what it called "better value for money products" it was offering.
On top of falling revenue, the company said it lost some 16,000 customers during the quarter, with its customer base falling to 1.68 million. Postpay customers rose by 7,000, however. The average amount paid by customers was also down, with an average of €34.39 per month, compared with €36.60 over the previous period. Data traffic was up 40pc year-on-year.
Telefonica Ireland's chief financial officer Paul Whelan said he hoped to grow its range of financial services following the roll-out of its O2 Money prepay card.