Vodafone Australia is an Australian telecommunications brand providing mobile and fixed broadband services. Vodafone’s mobile network covers more than 23 million Australians, and Vodafone has commenced the rollout of its 5G mobile network. Vodafone NBN fixed broadband services are available in capital cities and selected regional centres. Vodafone is the third-largest wireless carrier in Australia, with 5.8 million subscribers as of 2020.
Vodafone Australia became a subsidiary of TPG Telecom after the merger between Vodafone Hutchison Australia Limited and TPG Corporation Limited, in July 2020.
History
Ownership Structure
3-Vodafone merger
VHA was created on 10 June 2009, after shareholders and the Australian Competition & Consumer Commission approved a merger between Hutchison Telecommunications Australia (owner of the Three network) and Vodafone Australia.
During the merger, Vodafone Hutchison Australia announced it would buy out its Vodafone branded stores, previously run by the retail management groups Digicall, First Mobile, Inside Mobile and GSM. The new retail structure lifted VHA's current headcount by 1,400 to 5,100 staff, and added over 170 stores. Three-branded stores were already owned by VHA.
Before the merger with 3:
Vodafone Group plc owned Vodafone Australia Limited (which runs the Vodafone network) Hutchison Whampoa owned 52% of Hutchison Telecommunications (Australia) Limited, which owned Hutchison 3G Australia ("H3GA") (which operated the 3 network)
After the merger, Hutchison 3G Australia was renamed Vodafone Hutchison Australia, and 50% was sold to Vodafone Group.
The merger created Australia's third largest mobile telecommunications provider behind Telstra and Optus (27% market share)
Between 2009 and 2012 VHA experienced a series of major failures on their mobile network - 'Vodafail'. (a term used widely in the media and by users on social media networks to describe the outages). More than two million customers left VHA over the period from 2010 to 2013.
VHA began phasing out the 3 brand in mid-2011, with the 3 network was shut down completely on 30 August 2013.
VHA-TPG merger
On 30 August 2018 VHA announced plans to merge with TPG, the second-largest internet service provider in Australia, with Vodafone Group and Hutchison Telecommunications Australia to own a combined 50.1% of the combined group and TPG shareholders the remaining 49.9%.
In December 2018, the merger plans were called into question by the Australian Competition & Consumer Commission, which expressed 'concerns' regarding a potential reduction in competition if the merger were to proceed. In particular, the regulator signalled its concern that the merger would essentially remove Vodafone from the fixed-line broadband market and remove TPG (an 'aggressive' low-cost competitor) from the mobile market. This ultimately led the ACCC to block the proposal in May 2019.
The ACCC's decision was overturned by the Federal Court of Australia in February 2020, giving TPG and VHA permission to merge as planned. The Court ruled that TPG no longer held ambitions to enter the Australian mobile market with its own infrastructure, with the merger therefore not likely to reduce competition levels in the market.
TPG Telecom Limited, formerly named Vodafone Hutchison Australia Limited, was listed on the Australian Securities Exchange on 30 June 2020.
Network history
1992 to 1993
The Vodafone 2G and 3G (2100/900 MHz) networks originally operated as a single network, separate to the Three network. Vodafone first entered the Australian market in 1992 when it was awarded the third mobile network operator license in Australia in December that year. Vodafone Australia then launched its 2G GSM mobile network in October 1993.
2009 to 2018
During the 2009 merger, VHA had made no comment on their intention to combine the Three and Vodafone networks, or offer roaming between them. As of late-2009 however, roaming onto the Vodafone's 2G network had been enabled for Three customers in areas that had limited 3G coverage (e.g. blackspots).
In late 2010, VHA announced plans to consolidate the Three and Vodafone networks, in an attempt to better compete with Telstra's Next G network. The plan included the expansion of UMTS 900/2100 MHz coverage in 900 metropolitan sites and 500 outer metropolitan sites across Australia, an end to the 3GIS network (3's UMTS 2100 MHz network, which it has a 50% stake with, the other 50% being held by Telstra).