FutureFive NZ - XT sales below expectation

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XT sales below expectation

The XT Network is considered a key plank in Telecom’s transformation plan, so how has it performed? Today’s Q1 briefing was the first chance to find out.

Since its May launch XT has attracted 242,000 customers, 64,000 of them new Telecom mobile customers. It has seen a 16% rise in Average Revenue Per User compared to what customers are spending on its old CDMA network.

During the briefing, CEO Paul Reynolds admitted that customer acquisition is below expectation. And he acknowledged 2degrees’ successful launch, although he says that 2degrees customers “are operating on two SIMs”.

Also, Telecom now appears to be launching wholesale services on the XT Network earlier than planned. At first it had said it would take 18 months to consider a MVNO deal (Mobile Virtual Network Operator). But at today's briefing Telecom Wholesale chief executive Matt Crockett said they are likely to have an announcement on MVNO deals in the next couple of weeks.

It currently has an MVNO with Digital Island on its CDMA network. Its previous MVNO partner TelstraClear announced it was moving back to Vodafone’s network, after being unable to secure a wholesale deal on the new XT Network. The push to get customers onto the XT Network will see the company launch HSPA+ technology – this upgrades maximum data speeds to 21Mbps. There is also a slew of Christmas offerings, such as non-stop text over the holiday period.

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