Operators play down prospects of iPhone price war

VODAFONE and O2 have played down talk of an iPhone price war when the two carriers begin a battle for customers in the new year.

Sources said customers should not expect cut price deals when the two operators go head to head, given the popularity of the iPhone.

O2 refused to say how many iPhones have been sold in Ireland but said the device has been “massively popular” and it expects strong sales in the run-up to Christmas.

Vodafone will begin selling the iPhone in Ireland early next year when O2’s exclusive contract to sell the device expires.

Orange began selling it in Britain yesterday and said it sold more than 30,000 units while also claiming it broke sales records.

Apple has sold more than 30 million iPhones worldwide since it went on sale in June 2007.

Meanwhile, Vodafone Ireland, in a trading update for the three months ended September 2009 said its average monthly revenue per user fell by 8.7% to €38.80 compared with a year earlier as it added 106,816 new customers to hit 2.12 million.

It now has over 250,000 mobile broadband and DSL customers in Ireland and 840,000 bill-paying contract customers.

Its customers increased their use of voice minutes by 1.2% to 257 per customer and increased the number of texts they sent by 6.4% to 183 per customer, compared with the previous quarter.

It said Vodafone Ireland’s customers’ consumption of voice minutes and texts remained higher than the Vodafone Europe average of 150 voice minutes and 88 text messages per customer.

Chief executive of Vodafone Ireland Charles Butterworth said: “Value and quality of service are vital for business customers who are operating in one of the toughest economic environments ever experienced by Irish enterprises.

“In the last quarter, Vodafone has reacted strongly to market conditions, working closely with customers to deliver best in class business solutions at an affordable and competitive price.

“As a result, we are firmly winning the competitive battle in the business market.”

Vodafone said that although it remains the number one for prepay services, its base has been impacted by a general trend of migration away from Ireland.

It said that going forward it will enhance its prepaid offerings.

On a group level Vodafone, the world’s largest mobile-phone company, posted a 2.9% rise in first-half operating profit and said it plans to cut costs by an additional £1 billion (€1.11bn)

Sales in the half advanced 9.3% to £21.76bn (€24.2bn).