The trials and Tribulations of Vodafone

Vodafone have had a rough stint over the past few years, with a network crippling merger with 3 and a consequent trail of hiccups and blackouts leaving them haemorrhaging customers and money as a result.  But they haven't given up the fight. Call them the little engine that could, or a dead horse, whatever you like, but they certainly get an E for effort.

Their infinity plans raised the bar for competitive plans, though haven't really stayed ahead of the market, they have put 1.7 billion into a network upgrade and engaged that guy from 'the secret life of us' as a spokesperson.  But lopsided grins and floppy hair didn't stop 178 000 customers from turning coat, and they reported a 131.3 million dollar loss last quarter.

Their backers are set to pour money into the struggling telco, but are looking to make it leaner and more cost effective, with a 10% reduction in staff forecasted, or 500 jobs in real life terms.  New chief Bill Morrow states that they are "prepared to think and act differently in everything we do".

It could be argued that slash and burn bottom line tactics seem pretty in line with major telco behaviour, with Optus slashing 275 jobs last week.  But this may be what they need to create the margins that align themselves with a low-cost, high-quality provider.   “It is vital that we simplify the business to be efficient and to enable growth in the long term," says Morrow, who aims to prioritise every dollar to improved experience.

The resources have been flagged as being cut from back of house and behind the scenes positions, mostly at Sydney HQ, so it's not projected that they would be reducing their customer service capacity.  This money is pegged to be spent on their new and upgraded network, as network issues have been the bane of their existence for the past few years.

Whenever a company lays off staff there is usually a furore; with picketing and claims that optimisation is un-Australian, however it's important that Vodafone succeeds.  Having more than two strong viable networks is vital for a competitive, consumer-friendly environment, and it seems like they really have a closing window of opportunity to win consumer trust and establish a sustainable position as a top tier network provider.