Vodafone remakes itself as broadband player

Not content with being a mobile provider, Vodafone has now decided to start offering fixed line broadband and voice services.

Announcing its latest set of key performance indicators including user numbers and ARPU, Vodafone has revealed its intention to move into the DSL and fixed voice market for both residential and business users.

The company would not put a timescale on when the new products will launch but said the introduction of fixed services would likely take place next year. A Vodafone spokesperson told ZDNet Australia: "The first trial will start in August with employees. The single billing system and the customer support, that's what we'll be looking at." The pilot is expected to last at least three months.

Vodafone confirmed it is in discussions with a number of carriers to enter a re-seller agreement but declined to give names.

Despite Vodafone CEO Arun Sarin's comments at the 3GSM World Congress earlier this year that the operator should be trying to shift more and more minutes from fixed-line providers onto mobile networks, Vodafone Australia believes there's still room for another fixed line entrant in the market.

"There's still room to make inroads there," the spokesperson said, adding that Vodafone expects to better take on the incumbent using a bundled offering.

It's thought that Vodafone will eventually move to a "triple-play" offering, selling customers fixed-line, mobile and broadband access for a single monthly price. Rival telco Optus hinted at a similar shift last week, with the introduction of its Fusion-branded phone and broadband caps.

A spokesperson for the carrier said at the launch that introducing a mobile element "is the logical next step".

Vodafone has already begun reselling DSL services in other markets around the world. The move away from focusing on traditional revenue streams comes as part of the company's new strategic direction, announced last year, to revitalise returns in markets approaching mobile saturation.