Vodafone 2005 Annual Report Download - page 14

Business Overview continued
12 |Business
Licences and network infrastructure
Licences
The Group is dependent on the licences it holds to operate mobile telecommunications
services. Further detail on the issue and regulation of licences can be found in
“Regulation”. The table below summarises the significant licences held by the Group’s
subsidiary companies and details of their related network infrastructure:
Date of
Country by Licence commencement
region type Licence expiry date Network type of commercial service
Germany 2G December 2009 GSM/GPRS June 1992
3G December 2020 W-CDMA February 2004
Italy 2G January 2015 GSM/GPRS December 1995
3G December 2021 W-CDMA February 2004
UK 2G See note(1) GSM/GPRS December 1991
3G December 2021 W-CDMA February 2004
Other EMEA
Spain 2G July 2023(2) GSM/GPRS October 1995
3G April 2020 W-CDMA February 2004
Albania 2G June 2016 GSM August 2001
Egypt 2G May 2013 GSM/GPRS November 1998
Greece 2G September 2012 GSM/GPRS July 1993
3G August 2021 W-CDMA July 2004
Hungary 2G July 2014(3) GSM/GPRS November 1999
3G December 2019 W-CDMA –
Ireland 2G December 2014 GSM/GPRS March 1993
3G October 2022 W-CDMA May 2003
Malta 2G(4) September 2010 GSM/GPRS July 1997
Netherlands 2G February 2013(2) GSM/GPRS September 1995
3G December 2016 W-CDMA February 2004
Portugal 2G October 2006 GSM/GPRS October 1992
3G January 2016 W-CDMA February 2004
Sweden 2G December 2010(2) GSM/GPRS September 1995
3G March 2015 W-CDMA February 2004
Asia Pacific
Japan 2G See note(5) PDC April 1994
3G See note(5) W-CDMA December 2002
Australia 2G June 2017(6) GSM/GPRS September 1993
3G October 2017 W-CDMA –
New Zealand 2G March 2021 GSM/GPRS October 2001
3G March 2021 W-CDMA –
Notes:
(1) Indefinite licence with a one-year notice of revocation.
(2) Date relates to 1800MHz spectrum licence. Vodafone Netherlands, Vodafone Spain and Vodafone Sweden also have separate
900MHz spectrum licences which expire in March 2010, March 2010 and December 2010, respectively.
(3) There is an option to extend this licence for seven years.
(4) Also refers to 3G services.
(5) Licences are issued for a five year term with a presumption of renewal where there is a continuing commercial need for
spectrum.
(6) Date refers to 900MHz spectrum licence. Various licences are held for 1800MHz licences, which are issued by specific
regional regulators. The earliest expires in June 2013 and the latest in March 2015.
Mobile network infrastructure
Network infrastructure is fundamental to the Group being able to provide mobile
services. The mobile network enables the Group’s customers to place and receive
voice calls and allows the Group to provide other services, such as text messaging.
When a voice call or data transmission is made on a mobile device, voice or data is
sent from the device and transmitted by low powered radio signals to the nearest base
station, which in turn is connected to the Group’s network. Each base station provides
coverage over a given geographic area, often referred to as a cell. Cells can be as
small as an individual building or as large as 20 miles across. Each cell is equipped
with its own radio transmitter and receiver antenna. This network of cells provides,
within certain limitations, coverage over the service area. When a customer using a
mobile device approaches the boundary of one cell, the mobile network senses that the
signal is becoming weak and automatically hands over the call to the transmission unit
in the next cell into which the device is moving.
If the voice call or data transmission is intended for delivery to another device which is
not on the Vodafone network, the information is delivered through a public or private
fixed line telephone network or the Internet.
In a 2G network, each cell contains a base station using a number of radio frequencies
or channels. A group of base stations is connected to a base station controller, which
in turn is connected to a mobile switching centre and then via a gateway support node
for access to a fixed line network or the Internet.
In a 3G network, voice or data traffic is passed through a Node B, being similar to a
base station in a 2G network, to a radio network controller which is then connected to
a mobile switching centre, similar to a 2G network.
Base stations and Node Bs form a core element of a mobile network and an insufficient
number of base stations can result in loss of service for customers. In addition, the
correct deployment of the right base stations is instrumental in achieving the network
quality and coverage that are crucial to customer satisfaction.
2G
Vodafone operates 2G networks in all its mobile operating subsidiaries, principally
through Global System for Mobile Communications (“GSM”) networks, offering
customers services such as voice, text messaging (“SMS”) and basic data services. In
addition, the majority of the Group’s controlled networks operate General Packet Radio
Service (“GPRS”), often referred to as 2.5G. GPRS allows mobile devices to be used
for sending and receiving data over an Internet Protocol based network, enabling
wireless access to data networks like the Internet. The 2G PDC network in Japan,
although based on a different standard, provides similar features to the Group’s GPRS
networks.
The GPRS data service offering includes Internet and e-mail access allowing the
customer to be always connected at download speeds slightly below a dial-up modem.
Vodafone also offers a great variety of services on its Vodafone live! portal, such as
picture and video messaging, download of ringtones, news and many other services.
3G
Vodafone’s 3G networks, operating the wideband code division multiple access
(“W-CDMA”) standard, provide customers with mobile broadband data access, allowing
data download speeds of up to 384 kilobits per second, which is up to seven times
faster than a dial-up modem. Vodafone has expanded its service offering on 3G
networks with high speed Internet and e-mail access, video telephony, full track music
downloads, mobile TV and other data services in addition to existing voice and data
services.
The Group has secured 3G licences in all jurisdictions in which it operates through its
subsidiary undertakings and in which such licences have been awarded to date.
Vodafone expects to participate in additional 3G licence allocation procedures in other