Vodafone Hutchison Australia [VHA] is facing increasing investment requirements to catch up to its competitors with regard to network quality, and also to renew and acquire the spectrum needed to remain competitive. There’s an ongoing perception of VHA’s network quality relative to those of Telstra and Optus, as well as fallout from the step-change in mobile industry competitive intensity from mid-2010.
The poor perception around VHA’s network has also been exacerbated by continued investment from Optus and Telstra – who were both able to launch 4G networks at 1800 MHz in time for the release of the iPhone5, and naturally have more extensive backhaul networks given existing fixed line infrastructure. Vodafone’s 4G launch is likely to occur in early 2013.
Vodafone’s Challenges in Australia
Vodafone’s voice network quality have been resolved, the quality of Vodafone’s data network remains inferior to its competitors due to the absence of a 4G LTE network rollout and an inferior backhaul network. VHA has been addressing this with higher levels of investment. The issues with backhaul stem in part from Vodafone not being able to leverage an extensive fixed line infrastructure network (as Telstra and, to a lesser extent, Optus can). Vodafone has been working to alleviate backhaul deficiencies via fibre rollouts to base stations, using a number of 3rd party providers.