BT's falling PAYG user base makes way for more postpaid users

BT Group today announced a surge in its postpaid user base amid a similar drop in number of prepaid customers during the third quarter ending 30th September.

BT Group added 280,000 postpaid customers in the third quarter while losing 325,000 prepaid customer in the same period.

BT Group began the quarter with a total of 30.2 million customers which included both EE and BT Mobile customers and ended the quarter with its overall user base intact. However, there were visible shifts in the Pay As You Go and postpaid segments with both trading gains and losses but not significantly impacting BT Group's balance sheets.

EE has an Apple TV deal for all iPhone customers following Apple Music offer

BT Group stated in a press release that it's earnings per user in the prepaid segment was just £4.4 in the third quarter but earning for every postpaid user was as much as £27.4. If we calculate the total loss based on 325,000 prepaid users leaving the network, it amounts to around £14.3 million, but by adding 280,000 postpaid customers, BT Group covered over the loss by adding £76.7 million in the period, thus gaining overall profitability. Out of BT Group's 30.2 million mobile customers, the total number of postpaid customers are 16.4 million and that of prepaid customers is now just 7.6 million. It is not clear how many of the new additions in the postpaid segment switched from prepaid or how many switched from other networks.

BT Group's gains in the post paid sector comes at a time when the group is pouring significant funds into expanding it's reach in the UK market as well as offering increased data speeds across the country. "We’re making progress on our strategy to reach 92% 4G geographic coverage by September 2017 and 95% by the end of December 2020.  At 30 September 2016 we had reached UK geographic coverage of 70% (98% 4G population coverage), with the widest coverage of any UK operator.  During the quarter EE launched the next phase of the 4G+ network, capable of providing real world speeds of over 360Mbps, which will be deployed on 500 sites across the UK by the end of 2017," said BT Group.

BT offers big discounts with three new pay monthly plans

The significant addition of over quarter of a million customers in the post-paid sector may also be due to the fact that both BT Mobile and EE have been offering good value deals with add-ons and free subscriptions. In June, BT Mobile launched three new pay monthly mobile deals to let customers enjoy unlimited texts and up to 15GB of 4G data every month. Starting from £20 a month, BT's pay monthly deals arrived with additional discounts for existing users of BT's home broadband and also let users access as many as five million BT Wi-Fi hot-spots around the country. Using the BT mobile app, customers were also able to view usage alerts, how much minutes or data they consumed and how much was left. BT Mobile also offered  50 per cent discounts for the first six months for Samsung Galaxy A3, letting users pay just £10 a month for the first six months instead of £20 a month.

EE has also consistently maintained its lead over other networks in terms of reach, upload and download speeds and performance on calls and texts. The network has received praise from customers for offering them 4G coverage in more places than anyone else and for this reason, it won the Best Network award at Mobile Choice Consumer Awards earlier this month. EE also offered great new deals for the iPhone 7, offering Cat 9 LTE (upto 400 Mbps) across the UK exclusively to iPhone 7 customers and packing in six-month free subscriptions to Apple Music. EE also offered new Apple TVs with new and upgrading iPhone Pay Monthly deals by charging £12 per month for 11 months or a one-time payment of £134.99.

 

1Comment

  1. Guest
    Guest27th Oct 2016

    Signal strength at Junction 9 with EE is poor 1 to 2 bars at best and can drop to zero. Wednesday area awful 4gsupport. Are BT and EE sharing the same...

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