Smartphones 82% of all Pay monthly connections on Everything Everywhere

Everything Everywhere, have a poor last quarter and reveal that smartphone devices on the network now account for 82% of all Pay monthly phones

Badly-named, twin-headed telecomms company Everything Everywhere, announced their results today, and as part of the results revealed that smartphone devices on the network now account for 82% of all Pay monthly connections – compared to 50% for the same quarter last year.

The annual report reveals a few other highlights including; Orange launched exclusive Windows phone 7 handsets as Microsoft’s key UK partner and Everything Everywhere was the first to launch iPad tariffs across both brands. However the report fails to give figures for sales of iPads and Windows phone 7 devices. Which makes you wonder just how many they actually sold. Any guesses? All this on a day when Microsoft are having problems with the latest updates.

Looking at the results in detail reveals that the new behemoth is lord over a very stagnant market with underlying revenue growth of just 1%, and a monthly contract churn levels reduced by just 0.4ppts, although churn was up on Q4 2009 (3.2% up from 2009’s 2.9%).

Total customers are down from Q4 2009 where they had 28.175  million they now have 27.984 million, but they have however now got more contract customers 947,000 more than Q4 2009 , unfortunately the ARPU on contract customers has fallen from £36.5 to £35.2 per user per month.

They attribute the “lowering churn rate” to putting 58% of their customers on longer 24-month contracts, compared to 29% in 2009. Which to us doesn’t sound like a very good way of reducing churn, but more a way of making 58% of your customers resentful that they’ve been locked-in to a service for two years that they don’t want. The true measure of their success will be when the 24 month contract ends and they leave in droves or they stay. This is the poorest excuse reason we have ever heard for reducing churn.

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