Vodafone 2016 Annual Report Download - page 202

Vodafone Group Plc
Annual Report 2016
200
Denition of terms
Unaudited information
2G 2G networks are operated using global system for mobile (‘GSM’) technology which offers services such as
voice, text messaging and low speed data. In addition, all the Group’s controlled networks support general
packet radio services (‘GPRS’), often referred to as 2.5G. GPRS allows mobile devices to access IP based data
services such as the internet and email.
3G A cellular technology based on wide band code division multiple access delivering voice and faster
dataservices.
4G/LTE 4G or long-term evolution (‘LTE’) technology offers even faster data transfer speeds than 3G/HSPA.
5G 5G is the coming fth-generation wireless broadband technology which will provide better speeds and
coverage than the current 4G.
Acquisition costs The total of connection fees, trade commissions and equipment costs relating to new customer connections.
ADR American depositary receipts is a mechanism designed to facilitate trading in shares of non-US companies
inthe US stock markets. The main purpose is to create an instrument which can easily be settled through
USstock market clearing systems.
ADS American depositary shares are shares evidenced by American depositary receipts. ADSs are issued by a
depositary bank and represent one or more shares of a non-US issuer held by the depositary bank. The main
purpose of ADSs is to facilitate trading in shares of non-US companies in the US markets and, accordingly,
ADRs which evidence ADSs are in a form suitable for holding in US clearing systems.
AGM Annual general meeting.
AMAP The Group’s region: Africa, Middle East and Asia Pacic.
Applications (‘apps’) Apps are software applications usually designed to run on a smartphone or tablet device and provide a
convenient means for the user to perform certain tasks. They cover a wide range of activities including
banking, ticket purchasing, travel arrangements, social networking and games. For example, the
MyVodafoneapp lets customers check their bill totals on their smartphone and see the minutes, texts and
data allowance remaining.
ARPU Average revenue per user, dened as revenue and incoming revenue divided by average customers.
Capital expenditure (‘capex’) This measure includes the aggregate of property, plant and equipment additions and capitalised softwarecosts.
Churn Total gross customer disconnections in the period divided by the average total customers in the period.
Cloud services This means the customer has little or no equipment at their premises and all the equipment and capability
associated with the service is run from the Vodafone network and data centres instead. This removes the need
for customers to make capital investments and instead they have an operating cost model with a recurring
monthly fee.
Controlled and jointly controlled Controlled and jointly controlled measures include 100% of the Group’s mobile operating subsidiaries and the
Group’s share of joint ventures and the Group’s proportionate share of joint operations.
Customer costs Customer costs include acquisition costs, retention costs and expenses related to ongoing commissions.
Depreciation and other
amortisation
The accounting charge that allocates the cost of a tangible or intangible asset to the income statement
over its useful life. This measure includes the prot or loss on disposal of property, plant and equipment
andcomputer software.
Direct costs Direct costs include interconnect costs and other direct costs of providing services.
EBITDA Operating prot excluding share of results in associates, depreciation and amortisation, gains/losses on the
disposal of xed assets, impairment losses, restructuring costs and other operating income and expense.
TheGroup’s denition of EBITDA may not be comparable with similarly titled measures and disclosures by
other companies.
Enterprise The Group’s customer segment for businesses.
FCA Financial Conduct Authority.
Fixed broadband customer A xed broadband customer is dened as a customer with a connection or access point to a xed line
datanetwork.
FTTC Fibre-to-the-Cabinet involves running bre optic cables from the telephone exchange or distribution point to
the street cabinets which then connect to a standard phone line to provide broadband.
FTTH Fibre-to-the-Home provides an end-to-end bre optic connection the full distance from the exchange to the
customer’s premises.
FRC Financial Reporting Council.
Free cash ow Operating free cash ow after cash ows in relation to taxation, interest, dividends received from associates
and investments and dividends paid to non-controlling shareholders in subsidiaries but before restructuring
costs and licence and spectrum payments. For the year ended31March 2014 and 31 March 2013, the
income dividends received from Verizon Wireless and payments in respect of a tax case settlement were
alsoexcluded.
Gbps Gigabits (billions) of bits per second.
HSPA+ An evolution of high speed packet access (‘HSPA’). An evolution of third generation (‘3G’) technology that
enhances the existing 3G network with higher speeds for the end user.
ICT Information and communications technology.
IFRS International Financial Reporting Standards.
Impairment A downward revaluation of an asset.
Interconnect costs A charge paid by Vodafone to other xed line or mobile operators when a Vodafone customer calls
acustomer connected to a different network.