Vodafone 2012 Annual Report Download - page 24

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22
Vodafone Group Plc
Annual Report 2012
Focusing on growth in:
The demand for mobile data
services is growing rapidly
Data is already our fastest growing segment,
with data revenue up by 22.2%* over the
nancial year, compared to a 4.4%* rise for
messaging revenue and a 4.0%* fall for voice
revenue. This demand is being driven by three
key factors a widening range of powerful and
attractive smartphones and tablets, signicant
improvements in mobile network quality and
capability, and an increased choice of user
friendly and useful applications for business
and social use.
+19.32010
2011
2012
+26.4
+22.2
Data revenue growth* %
We have already seen signicant growth in
thenumber of customers using smartphones,
with27% of customers in Europe using these
devices today, compared to 19% last year,
andthis is expected to grow rapidly in the next
fewyears.
52
2010
2011
2012
81
108
Data users Millions
We are growing data revenue
through enhancing technology
and improving the customer
experience
We are continuing to refocus our business
ondata to capture the signicant expected
growth in customer demand for data services.
We aim to deliver a market-leading network
experience to our customers. To compare our
performance against our major competitors
we conduct regular benchmark tests using
reputable third parties. The latest results show
that we have leading data service performance
in 13 out of 18 markets with data downlink
speeds on average around 6% better than our
next best competitor.
5.6Downlink
Uplink
5.3
1.4
1.8
Typical user data speeds 2012 Mbps
Vodafone
Next best competitor
More on how we’re driving data through
technology and customer experience
Pages 24 and 25
The mobile industry started less than 30
years ago with a single service making
and receiving calls. Today our customers
enjoy a range of services including simple
voice calls, text and picture messaging,
and data services such as mobile internet
browsing, social networking sites,
downloading applications (apps’) and
sending emails via smartphones.
Market context:
According to industry analysts, data is
expected to be the fastest growing segment
of the mobile industry. It is estimated that
between the 2011 and 2016 calendar years
worldwide mobile data revenue is set to
grow by US$142 billion, compared to a
US$27 billion decline in voice revenue over
the same period.1
Goals:
We aim to have the best mobile network
inall of the markets in which we operate,
supported by leading IT systems. This means
giving our customers far-reaching coverage,
a very reliable connection and increasing
speeds and data capacity.
Strengths:
We have more than 238,000 base station sites
transmitting wireless signals making us one
of the largest mobile operators in theworld.
Actions:
We are investing around £6 billion a year to
deliver ahigh quality mobile data experience
for ourcustomers.
Progress:
In 2012 nearly one trillion minutes of calls
were carried and more than 216 petabytes of
data were sent across our networks in other
words enough data for 2.8 trillion emails.
34%
of our customers use data.
Mobile data
services
Our goal is to become the provider of choice for
customers wanting to use data services. The opportunity
is huge as we believe that over time allcustomers will
want to use data internet services on their mobile devices.
Note:
1 Sourced from Strategy Analytics.
Strategy