Optus to invest further in infrastructure

Telco to invest in network coverage 16000646 800496369 0 0 7076032 300

Optus is investing heavily in its network in a bid to attract more customers who are looking for the best mobile plan.

Fairfax reports that it has spent two-thirds of its capital expenditure on upgrades to the 3G and 4G networks in the past three months - $176 million.

This is a 41 per cent increase from the amount spent in the same quarter last year.

It's being reported that over the past six months, Optus attracted 53,000 new customers while Telstra signed on 600,000 new patrons.

It comes as the telco reported a drop in its third-quarter net profit, which has been attributed to less than optimum subscriber growth.

The three months to December 31 saw Optus record a $160 million net profit, a 9.2 per cent fall from the $177 million in the same period in 2011.

The Australian Associated Press reported that despite these figures, executive Kevin Russell said their improved profit margins indicate a positive future.

He explained: "We definitely want to rebalance our business where we are not chasing sales in the marketplace through pricing, either in subsidy or in rate plan.

"We think there is a very clear opportunity for Optus to take a standout position in the marketplace in terms of customer experience."

Posted by Eve Gillespie