Vodafone Hungary loses HUF 5 bn on roaming fees, network expansion
Vodafone Hungary lost HUF 5 billion over the past two month in unrealised planned revenues and due to the extra cost of network maintenance, Vice-Chairman of the Board Gergő J. Budai said at a press conference on Monday.
Vodafone has extended substantial support to retail and SME customers and healthcare institutions and also made its digital education tools free to use. Meanwhile, the company is carrying out continuous capacity expansion to guarantee the stability of its network under the sudden jump in loads.
The virus situation also affected traffic: the number of voice calls increased by 50% in the middle of March, while internet use jumped by 25 to 30%.
The biggest increase was on 16 March when schools switched to digital education, while employers sent masses of workers to home office.
One of the first coronavirus patients in Hungary was an employee of UPC, which officially merged with Vodafone as of 1 April, which is why the company had to act fast, Vodafone said at the press conference. Vodafone switched thousands of employees to home office as of 13 March, introduced strict rules in its offices, disinfects offices regularly, has provided protective gear to front office and on-site workers and has installed plexiglass shields in its stores.
UPC, Vodafone merge in April
The UPC brand name was discontinued as of 1 April and the internet provider merged into Vodafone, giving it a nearly 30% share of the Hungarian telecommunications market. Vodafone now provides service to nearly 3 million mobile customers and can offer its landline service at nearly 2 million locations.
Customers now looking for 5G phones
Mobile providers have paid the budget HUF 128.5 bn in 5G auctions so far, of which Vodafone paid HUF 38.5 bn. Newly acquired frequencies will cost the company HUF 100 million a month in the first 10 years and double this amount after 2030.
Vodafone bought additional frequencies in order to develop its services at a frequency auction on 26 March for HUF 38.65 bn. The 80 MHz band acquired in the 3.6 GHz and 700 MHz frequencies will allow the company to increase 5G speeds, capacity and coverage, the company said at the press conference.
Retail customers are now increasingly looking to buy 5G phones, Budi said answering a question from Portfolio, adding that several manufacturers have added 5G devices to their product range. Budai also confirmed that there is no connection between 5G and the coronavirus, and all romours to the contrary should be regarded as fake news.
