Vodafone 1998 Annual Report Download - page 38

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Annual Report and Accounts 1998 - Review of Operations - UK Network
departure lounge at Heathrow Airport.
Tariffs
Significant tariff reductions took place during the year as part of the Company's aim to be recognised as
not only the best quality network in the UK, but also the best value for money. It is expected that these
simplified, better value tariffs will continue to stimulate growth, reduce churn and increase usage - all
within the context of rapid growth in the overall market.
'Pay As You Talk'
One of the most important developments during the year was the launch of 'Pay As You Talk' in
November 1997, the upgraded version of the original 'Prepay' service launched in October 1996. This
service is set to revolutionise the mobile telecommunications market, making mobile telephony
accessible to a whole new sector of the market and it has already enjoyed significant success.
The combination of the revitalised and expanded
channels of distribution and the new 'Pay as you
Talk' service resulted in a record last quarter in
1997, with 241,000 net new connections
'Pay As You Talk' is easy for the retailer to sell, as the whole product comes in a single box, requiring
little additional sales input over and above the carefully designed 'point of sale' material.
'Pay As You Talk' packaging and contents.
'Pay As You Talk' is also very easy for the consumer to
buy, avoiding the need for a written contract and putting
customers totally in charge of how much they choose to
spend on a continuing basis. Early indications are that
these customers are significant ongoing users of the
service.
The combination of the revitalised and expanded channels
of distribution and the new 'Pay As You Talk' service
resulted in a record last quarter in 1997, with 241,000 net
new connections. Of these, prepaid totalled 68,000 with
57,000 coming in December alone - making it Vodafone's
best-ever December. This success was not just a
Christmas phenomenon, as January 1998 became, in turn,
the company's best-ever January.
Other initiatives
Community and Environment
Vodafone continues to be committed to reducing the
impact of technology on the environment wherever
possible and recent initiatives include a programme to
harmonise base stations with their environment.
On the community front, Vodafone is significantly involved
in the Highlands and Islands project in Scotland, which is
developing mobile telecommunications coverage for
remote communities.
http://www.vodafone.com/download/investor/reports/annual98/reviewops/uknetwork.html (3 of 4)29/03/2007 23:07:41