Vodafone 2007 Annual Report Download - page 12

10 Vodafone Group Plc Annual Report 2007
The Group has a controlling interest in a fixed line telecommunications
service provider in Germany, with fixed line services in other markets
typically provided using wholesale relationships with infrastructure
providers.
During the year the Group was ranked number one in the 2006 Global
Accountability Rating, which measures how companies have built
responsible business practices, emphasising Vodafone’s commitment to
Corporate and Social Responsibility.
The Company’s ordinary shares are listed on the London Stock Exchange
and the Company’s ADSs are listed on the New York Stock Exchange
(“NYSE”). The Company had a total market capitalisation of approximately
£80 billion at 25 May 2007, making it the third largest company in the
Financial Times Stock Exchange 100 (“FTSE 100”) index and the twenty
second largest company in the world based on market capitalisation at
that date.
Where We Operate
The Group is managed and organised through two
geographic regions – Europe and EMAPA (Eastern
Europe, Middle East, Africa and Asia, Pacific and
Affiliates) – with the objective of aligning operations
with the Group’s strategy and focusing the Group’s
businesses according to different market and customer
requirements.
In addition, there are a number of central functions,
which are referred to as Common Functions, which
provide services to the Group’s operations and allow
the Group to leverage its scale and scope and manage
risk effectively.
Europe
Europe includes the Group’s principal mobile subsidiaries, located in
Germany, Spain and the UK, its joint venture in Italy, as well as the Group’s
73.7% controlling interest in a fixed line telecommunications business in
Germany. Other businesses in the European region comprise the Group’s
other subsidiaries in this geographic area, being Albania, Greece, Ireland,
Malta, Netherlands and Portugal.
The Group’s mobile subsidiaries in Europe and joint venture in Italy operate
under the brand name ‘Vodafone’. The Group’s fixed line subsidiary
operates as Arcor. Arcor is the second largest fixed line telecommunications
provider in Germany and offers its customers a range of services for voice
and data transfer, based on its own Germany-wide networks, with a focus on
direct access based broadband and internet protocol enabled virtual private
network (“IP-VPN”) products.
The mobile market share of the Group’s operators in its principal markets,
based on publicly available information, is estimated as follows:
Business Overview
Who We Are
Vodafone is a world leader in providing voice and data
communications services for both consumer and
enterprise customers, with a significant presence in
Europe, the Middle East, Africa, Asia, Pacific and the
United States. The Group is structured into two regions
to address the different business challenges inherent
in them.
At 31 March 2007, based on the registered customers
of mobile communications ventures in which it had
equity interests at that date, the Group had
approximately 206.4 million proportionate customers.
The Company has equity interests in 25 countries, through its subsidiary
undertakings, joint ventures, associated undertakings and investments.
Partner Market arrangements extend the Group’s footprint to a further 38
countries.
The table on page 13 sets out a summary of the Group’s worldwide mobile
operations at 31 March 2007 and venture customer growth, being growth
based on 100% of the operations customer base, in the year then ended
(the “2007 financial year”).
Through its mobile businesses, the Group provides a wide range of mobile
communications services, including voice, text messages (“SMS”), picture
messages (“MMS”) and other data services, and is continually developing
and enhancing service offerings, particularly through third generation (“3G”)
mobile technology which has been deployed in the majority of the Group’s
operations. Services are provided to both consumers and corporate
customers, through a variety of both prepaid and contract tariff
arrangements.
The Group’s mobile services are currently offered over a Global System for
Mobile Communications (“GSM”) network, on which a General Packet Radio
Service (“GPRS”) is also provided and, in certain operations, over a Wideband
Code Division Multiple Access (“W-CDMA”) 3G network. Where 3G licences
have been issued, the Group has secured such licences in jurisdictions in
which it operates through its subsidiary undertakings. Vodafone offered 3G
services in 14 of its controlled operations at 31 March 2007.
In line with the Group’s strategy, the Group is increasingly focusing on
developing total communications solutions for customers, making use of
the evolving technological changes which provide a far greater choice in
services, whilst maintaining a mobile centric approach, focusing on the core
benefits to customers of mobility and personalisation. As part of these
offerings, the Group now offers fixed broadband connectivity as part of the
total communications solution in a number of markets in which it operates.
Contents
Page
Business Overview 10
– Who We Are 10
– Where We Operate 10
– What We Offer Our Customers 14
– How We Deliver Our Services 17
– Our Technology and Resources 19
– How We Developed 22
Regulation 24
Italy
Spain
UK
Customer market share (%)
At 31 December 2006
010 20 30 40
36
33
31
26
Germany