Vodafone 2015 Annual Report Download - page 214

Mark-to-market Mark-to-market or fair value accounting refers to accounting for the value of an asset or liability based on the
current market price of the asset or liability.
Mobile broadband Also known as mobile internet (see below).
Mobile customer A mobile customer is dened 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.
Mobile internet Mobile internet allows internet access anytime, anywhere through a browser or a native application using any
portable or mobile device such as smartphone, tablet or laptop connected to a wireless network.
Mobile termination rate (‘MTR’) A per minute charge paid by a telecommunications network operator when a customer makes a call to
another mobile or xed line network operator.
MVNO Mobile virtual network operators, companies that provide mobile phone services under wholesale contracts
with a mobile network operator, but do not have their own licence of spectrum or the infrastructure required
to operate a network.
Net debt Long-term borrowings, short-term borrowings and mark-to-market adjustments on nancing instruments
less cash and cash equivalents.
Net promoter score (‘NPS’) Net promoter score is a customer loyalty metric used to monitor customer satisfaction.
Operating expenses Operating expenses comprise primarily sales and distribution costs, network and IT related expenditure and
business support costs.
Operating free cash ow Cash generated from operations after cash payments for capital expenditure (excludes capital licence
and spectrum payments) and cash receipts from the disposal of intangible assets and property, plant and
equipment, but before restructuring costs.
Organic growth All amounts marked with an “*” represent organic growth which presents performance on a comparable
basis, both in terms of merger and acquisition activity and movements in foreign exchange rates. For the 2015
nancial year, the Group’s organic service revenue growth rate has been adjusted to exclude the benecial
impact of a settlement of an historical interconnect rate dispute in the UK, the benecial impact of an upward
revision to interconnect revenue in Egypt from a re-estimation by management of the appropriate
historical mobile interconnection rate and the adverse impact of an adjustment to intercompany revenue.
The adjustments in relation to Vodafone UK and Vodafone Egypt also impact the disclosed organic growth
rates for those countries.
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 reach into such markets.
Penetration Number of SIMs 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 SIM.
Petabyte A petabyte is a measure of data usage. One petabyte is a million gigabytes.
Pps Percentage points.
RAN Radio access network is the part of a mobile telecommunications system which provides cellular coverage to
mobile phones via a radio interface, managed by thousands of base stations installed on towers and rooftops
across the coverage area, and linked to the core nodes through a backhaul infrastructure which can be
owned, leased or a mix of both.
Reported growth Reported growth is based on amounts reported in pounds sterling as determined under IFRS.
Retention costs The total of trade commissions, loyalty scheme and equipment costs relating to customer retention
andupgrade.
Roaming Allows customers to make calls, send and receive texts and data on other operators’ mobile networks, usually
while travelling abroad.
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.
Smartphone devices A smartphone is a mobile phone offering advanced capabilities including access to email and the internet.
Smartphone penetration The number of smartphone devices divided by the number of registered SIMs (excluding data only SIMs) and
telemetric applications.
SME Small to medium-sized enterprise.
SoHo Small-ofce home-ofce.
Spectrum The radio frequency bands and channels assigned for telecommunication services.
Supranational An international organisation, or union, whereby member states go beyond national boundaries or interests
toshare in the decision-making and vote on issues pertaining to the wider grouping.
Tablets A tablet is a slate shaped, mobile data or portable computing device equipped with a nger operated
touchscreen or stylus, for example, the Apple iPad.
Telemetrics Telemetric applications include, but are not limited to, asset and equipment tracking, mobile payment and
billing functionality, e.g. vending machines and meter readings, andinclude voice enabled customers whose
usage is limited to a central service operation, e.g. emergency response applications in vehicles. Telemetric
customers are not included in mobile customers.
VZW Verizon Wireless, the Group’s former associate in the United States.
Vodafone Group Plc
Annual Report 2015
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Denition of terms (continued)
Unaudited information