Vodafone 2008 Annual Report Download - page 26

Vodafone offers voice, messaging, data and fixed broadband services through multiple solutions and
supporting technologies to deliver on its total communications strategy. The advancements in 3G
networks and download speeds, handset capabilities and the mobilisation of internet services, have
contributed to an acceleration of data services usage growth.
Products and Services
Group service revenue is still predominantly generated by voice
services, though these services as a percentage of revenue are
slowly declining as price competition and regulatory pressures
increase in many markets and the contribution of data grows.
At the forefront of the Group’s total communications strategy are
initiatives targeted at providing propositions to customers that
replace traditional fixed line providers, as well as developing
new and innovative ways for customers to enjoy the benefits
of mobility, with the aim to increase the proportion of Group
service revenue that is generated by data and fixed line services.
So that customers can utilise the services that Vodafone offers,
many different tariffs and propositions are available, targeted
at different customer segments and adapted for any localised
customer preferences and needs. These propositions often
bundle together voice, data, messaging and, increasingly,
fixed services so that customers can experience all the different
services that Vodafone has to offer. Typically, customers are
classified either as prepay or contract customers. Prepay
customers pay in advance and are generally not bound to
minimum contractual commitments, while contract customers
usually sign up for a predetermined length of time and are
invoiced for their services, typically on a monthly basis.
As different tariffs and propositions are launched, the Group is
increasingly leveraging the positive experiences in one market to
provide initiatives across the Group. Offers with strong customer
appeal and commercial benefit are being quickly adapted and
rolled out to other markets. An example includes a range of
“Out of Credit” solutions for prepay customers, through which
Vodafone provides temporary credit to a customer which is
then repaid when the customer next tops-up. Reverse charging
capabilities have also been introduced across most markets.
These facilities are very popular with prepay customers and
have been launched in most European markets.
The experience gained in the Group’s more mature markets is
also being used to develop more sophisticated offers across the
emerging markets, many of which have a very high percentage
of prepay customers, and Vodafone is leveraging established
bonus and reward prepay pricing mechanisms, which incentivise
higher usage and spend at an individual customer level.
The Group is also growing usage and account penetration in the
business segment. Vodafone Global Enterprise (“VGE”) provides
over 140 of Vodafone’s largest multinational customers with
consistent levels of service, support and commercial terms
worldwide, by taking specific responsibility for managing these
multinational customers.
Over the last year, VGE launched a number of new products
and services, including, in July 2007, the launch of Vodafone
Applications Service, a service hosted by Vodafone and available
in ten countries, enabling companies to mobilise applications
such as SAP®, Siebel and Salesforce.com to a choice of mobile
devices. VGE has also developed a globally consistent pricing
structure for global business customers and has launched a
new voice roaming tariff that can be used for both domestic and
international voice usage that is available across five European
markets. A data roaming package has also been developed
that is simple, predictable, capped and available across ten
European markets.
Having traditionally been a key player in the provision of
corporate and small and medium enterprises (“SME”) voice
solutions in many markets, Vodafone is increasingly offering
tailored and innovative solutions for small business and
professional business customers. Many of these offers use the
capabilities already developed for larger companies and provide
benefits such as virtual private network services and Vodafone
Wireless Office solutions to much smaller entities.
Summary of Group products and services at 31 March 2008
Number of markets available
Partner Number of
Europe EMAPA markets customers(1)
Vodafone at Home 8 3 – 4.4 million
Vodafone Wireless Office 9 5 – 3.0 million
Vodafone Passport 11 3 3 17.5 million
Vodafone live! – Internet on your mobile 9 – – 2.0 million
Vodafone Mobile Connect data card or
Vodafone Mobile Connect USB modem 11 8 25 2.7 million
Note:
(1) Customers are presented on a controlled (fully consolidated) and jointly controlled (proportionately consolidated) basis in accordance with the Group’s
current segments.
24 Vodafone Group Plc Annual Report 2008
Vodafone – Business
Vodafone – Business
Analysis of Group service revenue
(%)
20072008
1
2
34
1
2
34
1 Voice – 77%
2 Messaging – 12%
3 Data – 5%
4 Fixed line – 6%
1 Voice – 75%
2 Messaging – 12%
3 Data – 7%
4 Fixed line – 6%