Vodafone 2007 Annual Report Download - page 11

Vodafone Group Plc Annual Report 2007 9
Innovative tariffs delivering market
leading performance in Spain
The Vitamina tariff in Spain offers a
single, any network, any time price for
prepaid and contract customers,
together with attractive add-on
options, such as talking for 60 minutes
but only paying for one and half price
SMS, that target different customer
needs. Over 50% of the Vodafone
Spain customer base is now on a
Vitamina tariff, driving an increase in
voice usage of around 30% and 13%
growth in revenue in local currency.
Market leader in business
services in the UK
Vodafone is the clear market leader
for business services in the UK,
increasing its market share during
the year by around 4 percentage
points to 46%. Key success factors
have been customer focused
propositions, in particular tariffs for
small and medium sized businesses,
as well as mobile data products such
as 3G broadband USB modems and
mobile connect data cards (where
Vodafone has 55% market share),
and mobile email solutions such as
BlackBerry®from Vodafone.
Vodafone Passport
Over 11 million customers now
benefit from lower roaming pricing
through Vodafone Passport since it
was first launched in 2005, helping
Vodafone to reduce the average cost
of voice roaming in Europe for its
customers by 40% compared to
summer 2005. Around 50% of all
roaming minutes in Europe are now
on Vodafone Passport.
Cost reduction
Network sharing with other operators is
generally intended to reduce the
number of base stations that each
operator owns and maintains whilst
retaining an independent high quality
service to customers. Sharing
arrangements have been announced for
rural areas in Spain and a memorandum
of understanding has been agreed to
share across the UK. These activities are
expected to lead to savings in operating
expenses and capital expenditure over
time, as well as reducing Vodafone’s
impact on the environment.
Outsourcing
Vodafone can realise the benefits
of outsourcing certain functions, such
as IT applications, to industry leading
partners for a lower cost than keeping
the operations within the Group.
Purchasing
Vodafone has centralised the bulk
purchasing of handsets and key
network components for many years
to generate purchasing efficiencies.
More recently, the Group extended
this activity by centralising all
purchasing activities for its networks,
IT and service platforms to realise
further savings.
The internet on your mobile
The internet is becoming
increasingly important for
customers, with rising numbers of
users and increasing amount and
frequency of use. Customers spend
a significant proportion of their time
communicating online, either
through traditional email and instant
messaging or through the relatively
new phenomena of social
networking and file sharing.
Part of the Group’s total
communications strategy is to
develop products and services that
enable customers to use the
internet on their mobiles in much
the same way as they use it on their
PC. In order to do this, the Group has
partnered with some of the most
significant internet companies to
mobilise their services in a way that
is seamless to customers.
Driving usage in the home
The Vodafone Zuhause range of
products in Germany offers a
competitively priced alternative to
fixed line pricing by recognising
when a customer is within the home
zone area. Vodafone Zuhause
customers have reached 2.4 million,
with significant increases in
household usage and improvements
in customer spend per household.
Delivering DSL
Arcor is the leading alternative fixed
line provider in Germany, with 2.1
million DSL customers and revenue
growth of 10% for the year. Arcor is
also enabling Vodafone Germany
to offer DSL services to its mobile
customers as well as providing a
centre of excellence for DSL for
the Group.
Egypt: Improved customer
value with Super Dardasha
Lower prepaid prices in Egypt with
the Super Dardasha tariff launched in
July 2006 has led to a significant
increase in the number of prepaid
customers and their usage, driving a
25% rise in prepaid ARPU this year
and 85% growth in prepaid revenue.
75% of prepaid customers are now
on the Super Dardasha tariff.
Turkey: Successful
rebranding to Vodafone
The transition to the Vodafone brand
was successfully completed ahead of
plan in Turkey in March 2007, after a
period of necessary investment in
the network and customer services
following completion of the
acquisition in May 2006.
South Africa: Driving growth
in non-voice revenue
Non-voice revenue increased by
33% this year, driven by both
messaging and data services, and
now represents over 8% of service
revenue. Increasing 3G and HSDPA
network coverage is enabling a
wider data offering to customers,
such as the Vodafone Mobile
Connect card and the Vodafone
Mobile Connect USB modem, and
delivering a fast and reliable mobile
alternative to fixed-line connectivity
in South Africa where fixed line
services are available to only 10% of
the population.
India
Vodafone has gained control of a
leading operator in the attractive and
fast growing Indian mobile market,
with already over 27 million
customers and nationwide market
share of around 16%. In a market of
1.1 billion people and mobile
penetration of only around 14%, the
opportunity for future growth is
significant.
Revenue growth
Romania 28%
Egypt 41%
Turkey 37%
South Africa 22%
India >50%
Strategy