Telefónica O2 reports 42pc increase in data traffic

11 Nov 2011

O2 reported a 42pc increase in data traffic on its network year-on-year, according to its Q3 key performance indicators. The number of O2 customers using smartphones increased 43pc year-on-year.

The increase in smartphone users led to a 21pc uplift in non-SMS data revenue and a 42pc increase in data traffic on the O2 network year-on-year.

The company said the growth in data usage has been enabled by the ongoing expansion of O2’s 21Mbps high-speed broadband network nationwide.

Already live in urban centres – including Dublin, Cork, Limerick, Galway, Waterford and Sligo –- and in a number of regional towns, a further 38 towns around the country are being upgraded to 21Mbps by the end of the year.

O2’s fixed line business customer base has increased by more than 13,000 in the 12 months to the end of September 2011, reaching a new base of 21,000. O2’s total customer base, including mobile and fixed customers, was 1.680m at the end of September 2011.

Monthly average blended ARPU was €32.46 for Q3 2011, down from €33.99 from the previous quarter. In the 12 months to the end of September, O2 customers sent 3.237bn text messages, and used 4.558bn voice minutes.

The O2 Money Card continues to perform strongly, with more than 65,000 cards sold since launch in February of this year. Telefónica Ireland’s joint MVNO venture with Tesco – Tesco Mobile – also continues to perform well, with more than 115,000 customers.

O2 continues to grow its postpay base

“We continue to see strong growth in our postpay base,” Paul Whelan, chief financial officer, Telefónica Ireland, said.

“Compared to last year, our smartphone customer base has increased by over 40pc with a corresponding increase in data traffic volumes on our network as our customers use more of our data services and products.

“On the network, we have invested heavily to deliver higher broadband speeds and capability to support the exceptionally strong growth in data traffic.

“However, the overall trading and macro environment remains very difficult, with our customers continuing to optimise their monthly spend and choosing to avail of increased value-for-money products and service from us,” Whelan said.