Vodafone 2012 Annual Report Download - page 26

24
Vodafone Group Plc
Annual Report 2012
Strategy (continued)
Our goal is to provide the best
datanetwork
a Today 99% of the population in our
European markets can make a call across
our network. We want the same level of
reach for data users so that customers can
use data almost everywhere they want,
whether at work in big cities, relaxing in the
countryside or on holiday by the beach.
Wealready have a strong data network
asaresult of signicant investment in
3Gtechnology, with over 89% 3G data
population coverage. We aim to increase
coverage further to enhance the number
oflocations where customers can use
dataservices.
a We are building faster and more reliable
data networks that either meet or exceed
the capabilities of leading smartphones for
headline data downlink speeds. At present
some 82% of our 3G footprint in Europe is
capable of maximum data speeds of 14.4
Mbps or better and by 2015 this is expected
to be nearly 100%. We will continue to
upgrade our capability of both 21.6 Mbps
and 43.2 Mbps in anticipation of the latest
generation of smartphones and tablets.
a To support high speed data capability being
introduced across our network we continue
to upgrade our backhaul and backbone
transmission capabilities, which connect
ourbase stations to the latest technology.
High capacity backhaul using ethernet,
microwave and optical bre transmission
equipment is now in about 41% of our sites
in Europe compared to 20% a year ago.
We continue to manage our
costbase carefully
a The increase in demand for data has meant
that data trafc has more than doubled in
the last two years and as a result, data now
accounts for 67% of the total trafc on
ournetwork. Despite the signicant cost
pressures that this adds, we have managed
to keep our technology operating costs,
broadly stable over the same period by
investing in cost efcient equipment. For
example over 70% of the new radio sites
deployed across the Group during the year
were shared with other mobile operators
which reduces the cost of renting or
building new sites. We are also deploying
more single radio access network (‘RAN’)
base station sites which comprise 2G, 3G
and 4G technology in one single unit as
opposed to three different, and hence more
expensive units. Single RAN units are now
present in 24% of our sites and deliver
energy operating cost savings of up to 40%
compared to traditional RAN units.
Our goal is to maintain robust
ITsystems to provide the platform
for enhancing the ways we manage
our customer relationships
a We are developing a number of tools
toimprove the ways we interact with
customers. We are investing to create a
“single view” of our customers across the
Group which links together all customer
activity and information on our various
saleschannels – online, retail and contact
centres. So, for example, if a customer calls
acontact centre or participates in web chat
online this information would be available to
our in-store staff.
a We are also investing in new ways of
billingcustomers to make tracking spend
easier, including one bill for voice, data
andxed services.
Long-term evolution (‘LTE’)
technology
While 3G provides a mobile data user
experience comparable to traditional
xed broadband services based on
copper technology, the development
of4G services, sometimes called
long-term evolution (‘LTE’) technology,
will signicantly enhance the user
experience providing user speeds of up
to 12 Mbps, compared to up to 6 Mbps
on 3G. InGermany, our rst market to
launch LTE, we have already deployed
the capability on 12% of our radio sites,
andasa result we can provide market
leadingcoverage to 14 million German
households, one-thirdof the total.
Mobile data:
Technology
We want to have the best
datanetwork and IT systems
toprovide the platform for
ourproducts and services.
Atthe same time we will
continue to carefully manage
our cost base to deliver
protable data services.
a We want to provide the best data
network in terms of coverage, speed
and capability.
a At the same time we will continue
tocarefully manage our cost base
todeliver protable data services.
a Our goal is to provide robust IT
systems to provide the platforms
and tools for managing customer
relationships for our products
andservices.
89% £304m
of the European
population where we
operate iscovered
byour 3Gnetwork.
invested in research and
development during
theyear to ensure we
continue to develop
innovative services.
992G
3G
4G
91
351
Network population coverage
in Germany 2012
%
952010
2011
2012
161
216
Data volume Petabytes
Note:
1 Household coverage.