Millions sign up to Vodafone

Vodafone's customer base grew by nearly 5 million users in the final quarter of last year, including more than 250,000 in the UK alone.

The average amount of money each Vodafone customer spends per month also increased, as data services such as text and picture messaging continue to grow in popularity.

Users are now spending an average of £287 a year, up from £278 the previous year.

Outgoing Vodafone chief executive Sir Christopher Gent said the new figures demonstrated "continued strong operational performance with better than expected organic customer growth.

"This is the third consecutive quarter that has seen an increase in group organic customer growth and in annual ARPU [average revenue per user] in some of our key markets," he added.

"Our progress in data revenues is pleasing ahead of the additional benefits expected from our new data service environments."

Some 4.9 million customers were added in the final quarter of 2002, taking the total base to 112.5 million. There were nearly one million net new customers in Germany, and more than 500,000 in Italy. UK net additions were 267,000.

The contract business continues to grow, with more than 100,000 new customers in the UK, even though the final quarter is traditionally stronger for pre-paid business.

Data revenue, as a percentage of total revenues, was up to 16% in the month to December, compared to 12.7% the previous year.

The boost comes after Vodafone last week reacted angrily to price cuts proposed by the competition commission. It called for a judicial review into the commission's report into the cost of calling mobile phones from other networks and BT lines.

Under the commission's proposals, all four mobile phone operators must slash the price of the calls - known as termination charges - by 15% by July, with more cuts to come. Oftel said the proposals could save consumers up to £700 million by 2006.

Sir Christopher is standing down from the chief executive's position in July to make way for Arun Sarin, the former head of Vodafone's US operations, but he will remain as a consultant with the business until his contract runs out at the end of the year.

Mr Sarin faces litigation from his time in the dotcom industry in the US. A Stateside law firm has begun a class action suit against web communications firm InfoSpace, which Mr Sarin ran three years ago.