10/13/2010 11:08:00 AM
Christmas prepay bid for Vodafone
Vodafone is launching an aggressive bid to grow its prepay share in the run up to Christmas.
The operator will launch a £10m advertising campaign and tariff refresh as it focuses on pay-as-you-go instead of its traditional drive towards contracts.
The marketing drive coincides with the busy pre-Christmas period, when about a third of handset sales are on prepay. Around 50% of Vodafone’s customers are currently signed up to pay-as-you-go deals.
One source said: ‘Prepay is massive for Christmas and around 30% of sales are on prepay – so there is a clear push in that area.’
Vodafone consumer director and former T-Mobile CMO Srini Gopalan will lead the marketing push, which will launch with an advertising campaign offering extra texts and free international calls for customers who top-up more than a certain amount.
It is understood the network is poised to launch new price plans and new handsets on pay-as-you-go.
Vodafone has already widened its prepay channels. HSC started to sell Vodafone pay-as-you-go handsets and Sim cards in September in the run up to the lucrative Christmas period.
Vodafone, which after the Everything Everywhere merger is the third largest UK operator, revealed in August that it is launching an onslaught in the indirect consumer channel after appointing Shebang as consumer distributor.
The network, which has been ramping up its indirect consumer presence since going back into Carphone Warehouse this time last year, launched a rebrand in September 2009.
Vodafone maintains a strong corporate share but has struggled in the consumer space in the face of increasing competition from rival networks Orange and O2.