Vodafone 2007 Annual Report Download - page 161

Vodafone Group Plc Annual Report 2007 159
GlossaryGlossary
The definition of terms used throughout the performance section is detailed below. These terms are not uniformly defined by all companies in the Group’s
industry. Accordingly, such measures may not be comparable with similarly titled measures and disclosures by other companies.
3G broadband 3G services enabled with High Speed Downlink Packet Access (“HSDPA”) technology which enables data transmission at speeds of up
to two megabits per second.
3G device A handset or device capable of accessing 3G data services.
Amortisation relating to intangible assets identified and recognised separately in respect of a business combination in excess of the
intangible assets recognised by the acquiree prior to acquisition.
Acquisition costs The total of connection fees, trade commissions and equipment costs relating to new customer connections.
Active customer A customer who pays a monthly fee or has made or received a chargeable event in the last three months.
ARPU Total revenue excluding handset revenue and connection fees divided by the weighted average number of customers during the
period.
This measure includes the aggregate of capitalised property, plant and equipment additions and capitalised software costs.
Changes relating to one country are calculated based on local currency amounts in both periods. For changes relating to multiple
countries, calculations exclude the exchange rate movements by restating the prior period’s results as if they had been generated at
the current period’s exchange rates.
Churn Total gross customer disconnections in the period divided by the average total customers in the period.
Controlled and jointly controlled measures include 100% for the Group’s mobile operating subsidiaries and the Group’s proportionate
share for joint ventures.
Customer A customer is defined as a Subscriber Identity Module (“SIM”), or in territories where SIMs do not exist, a unique mobile telephone
number, which has access to the network for any purpose (including data only usage) except telemetric applications. Telemetric
applications include, but are not limited to, asset and equipment tracking, mobile payment and billing functionality (for example,
vending machines and meter readings) and include voice enabled customers whose usage is limited to a central service operation
(for example, emergency response applications in vehicles).
Data revenue Data revenue includes all non-voice service revenue excluding messaging, fixed line and DSL.
This measure includes the profit or loss on disposal of property, plant and equipment and computer software.
DSL A Digital Subscriber Line which is a fixed line enabling data to be transmitted at high speeds.
HSDPA High Speed Downlink Packet Access is a wireless technology enabling data transmission speeds of up to 3.6 megabits per second.
Interconnect costs A charge paid by Vodafone to other fixed line or mobile operators when a Vodafone customer calls a customer connected to a
different network.
Messaging revenue Messaging revenue includes all SMS and MMS revenue including wholesale messaging revenue, revenue from the use of messaging
services by Vodafone customers roaming away from their home network and customers visiting the local network.
Net debt Long term borrowings, short term borrowings and mark to market adjustments on financing instruments less cash and cash
equivalents.
Organic growth The percentage movements in organic growth are presented to reflect operating performance on a comparable basis. Where an
entity, being a subsidiary, joint venture or associated undertaking, was newly acquired or disposed of in the current or prior period, the
Group adjusts, under organic growth calculations, the results for the current and prior period to remove the amount the Group earned
in both periods as a result of the acquisition or disposal of subsidiary or associated undertakings. Where the Group increases, or
decreases, its ownership interest in a joint venture or associated undertaking in the current or prior period, the Group’s results for the
prior period are restated at the current period’s ownership level. Further adjustments in organic calculations exclude the effect of
exchange rate movements by restating the prior period’s results as if they had been generated at the current period’s exchange rates
and excludes the amortisation of acquired intangible assets.
Partner Markets Markets in which the Group has entered into a Partner Agreement with a local mobile operator enabling a range of Vodafone’s global
products and services to be marketed in that operator’s territory and extending Vodafone’s brand reach into such new markets.
Penetration Number of customers in a country as a percentage of the country’s population. Penetration can be in excess of 100% due to
customers’ owning more than one Subscriber Identity Module (“SIM”).
Proportionate customers The proportionate customer number represents the number of mobile customers in ventures which the Group either controls or
invests, based on the Group’s ownership in such ventures.
Amortisation relating to capitalised licence and spectrum fees purchased directly by the Group or existing on recognition through
business combination accounting, and such fees recognised by an acquiree prior to acquisition.
Retention costs The total of trade commissions, loyalty scheme and equipment costs relating to customer retention and upgrade.
Service revenue Service revenue comprises all revenue related to the provision of ongoing services including, but not limited to, monthly access
charges, airtime usage, roaming, incoming and outgoing network usage by non-Vodafone customers and interconnect charges for
incoming calls.
Termination rate A per minute charge paid by a telecommunications network operator when a customer makes a call to another mobile or fixed line
network operator.
A handset or device equipped with the Vodafone live! portal which has made or received a chargeable event in the last month.
Vodafone live! active
device
Purchased licence
amortisation
Depreciation and other
amortisation
Controlled and jointly
controlled
Change at constant
exchange rates
Capitalised fixed asset
additions
Acquired intangibles
amortisation
Definition of Terms