Vodafone focuses on infrastructure
Vodafone has seen a rebound in the performance of its network in a bid to regain its market share after losing customers a number of years ago.
In his zeal for profits, the chief executive failed to invest adequately in infrastructure which led to the telco haemorrhaging patrons, said Make It Cheaper managing director Tim Wolfenden.
Mr Wolfenden mentioned that Vodafone took a hard look at themselves two years ago.
He explained: "About 24 months ago it came to a head when the global group went about trying to sustain a share of the market place.
"Vodafone did not want to be seen as a service with a bad network with poor customer service and as a result they spent more money in the last two years than Optus and Telstra combined."
Mr Wolfenden estimated this figure to be worth anywhere from $1.5 billion to $2 billion.
He explained that during the period of time when Vodafone weren't investing in infrastructure, the sales side of the operation was being expanded to make up the gap. As the network has been improved, it has decided to downsize in some areas to increase efficiency.
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Posted by Eve Gillespie