Unified Comms Dealer Alternative Networks have stated that the 18% drop in mobile profits reported in their interim results s due to challenging market conditions and roaming tariff reductions implemented by carriers.
The Interim results, posted 8 June shows that in the six month period ending 31 March mobile revenue fell to £18.9 million, a 7% reduction. However, this was somewhat offset by order backlogs in Advanced Solutions and Fixed Voice services which are expected to show significant growth in the second half of the year.
Changes to carrier roaming tariffs were brought about by European Union roaming rules, which seek to reduce the cost of calls, texts and data across its member states.
In their report, Alternative Networks explained that customers using less roaming services during the period compounded tariff issues but say they’ve responded by changing their own tariffs and negotiating with their carriers – O2 and Vodafone.
CEO Mark Quartermaine commented on the results ‘There have been market challenges to our Mobile business, over the past six months. However we have remained competitive, have continued to improve our offering to customers and win new customers.’
Mobile revenue now represents 27% of the group’s overall revenue, following market trends of further diversifying services.