Vodafone 2012 Annual Report Download - page 32

Download and view the complete annual report

Please find page 32 of the 2012 Vodafone annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 176

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176

30
Vodafone Group Plc
Annual Report 2012
Focusing on growth in:
New services
We are supplementing our core communications
services of voice, data and texts with a range of new
services to generate additional revenue and enhance
the customer experience. These new services comprise
three key areas – mobile commerce services, machine-
to-machine (‘M2M’) services and operator billing.
Mobile commerce services
Mobile nancial services are today at the core
of our mobile commerce services and M-Pesa
is our main service, a mobile payment service
that enables millions of people to transfer
money electronically even when they have no
access to a bank (see page 26 for more details).
We are also developing a global mobile wallet
service whereby customers with suitably
equipped smartphones can use them to pay
for goods and services. Earlier this year we
announced a worldwide partnership with
Visato enable customers to simply wave their
phone in front of a payment terminal to make
simple everyday purchases such as train
tickets, newspapers or their morning coffee.
7.22010
2011
2012
11.2
14.4
M-Pesa active customers Millions
Machine-to-machine
M2M connections allow machines to
communicate with one another via built-in
mobile SIM cards. It is our vision to transform
lives and businesses by providing the most
innovative M2M products and services for
ourcustomers. Smart metering, automotive
and logistics are currently the key growth
sectors with the potential market increasing
from €3billion in 20113 to €6 billion by 201513.
Wearenow serving around 7.8million
M2Mconnections globally, up from 5.3million
last year.
An increasing number of global businesses
areincorporating M2M communications
intotheir core operations, leading to greater
productivity, enhanced customer service,
lower energy use and decreased carbon
dioxide emissions.
3.72010
2011
2012
5.3
7.8
Machine-to-machine
connections
Millions
Operator billing
Across the globe around 28 billion apps are
downloaded every year; most are free but an
increasing number are paid for. To build on this
opportunity we are partnering with leading
companies such as Google and Facebook to
enhance their service with a simple solution
that allows our customers to pay for apps and
games directly and simply on their Vodafone
monthly phone bill. We were therst operator
to launch the service in Europe for the Android
market and the service today also works
onBlackBerry and Nokia. Early results have
shown that around 80% of apps bought
through BlackBerry App World are paid for
viaoperator billing. These recently launched
services provide a great customer experience
and we had over 130,000 active users at the
end of the nancial year.
2011
2012
205
1,563
Apps paid through Vodafone
operator billing2
Thousands
People are using data more and more
intheir everyday lives driven by fast,
reliable mobile data networks and
continual improvements in devices
such as handsets and tablets. We are
also seeing increased interest from
customers in new data-based services
like mobile payments via handsets
andmobile data devices for homes
andcars.
Market context:
New services account for a small portion of
our revenues today but the potential market
opportunity is signicant.
Goals:
We want to expand our presence in attractive
new growth segments to capture the
incremental opportunity and enhance
customer service through the provision of
new and useful services that add value to our
customers’ lives.
Strengths:
Our global network reach, leading brand and
strong service platforms make us well placed
to become the partner of choice and capture
the revenue growth opportunity.
Actions:
We are developing new services in
partnership with leading companies from
allrelevant industries, including nancial
institutions, retailers, software producers and
handset manufacturers.
Progress:
During the year we saw strong growth in the
take up of new services, adding 3.2 million
active M-Pesa customers and 2.5 million
new M2M connections.
Notes:
1 Consensus of leading M2M market analysts for global M2M
connectivity (excludes hardware, software, applications and system
integration services).
2 Data for 2010 is unavailable as the service was launched in 2011.
3 Refers to calendar year.
Strategy (continued)