Vodafone 2016 Annual Report Download - page 11

Adapting and
evolving our response
We live in a fast-paced world where our customers’ needs are constantly
evolving. In order to compete we are responding to key market trends,
and building a stronger product offering for our customers.
Focusing on services that will make a difference to our customers
Growing importance
of data, emerging
markets and other
new revenue areas
40% CAGR
1
mobile data usage growth
by 2021
Demand for data is being
driven by faster xed and
mobile networks with greater
geographic reach and capacity,
more advanced handsets with
faster processing power and
larger screens, increased use
of applications such as social
media, messaging, video
streaming and general browsing.
Growth in demand for
converged services
56%
of households in Spain use
converged services
Customers are increasingly
choosing simplicity – either
adding mobile to their xed
line services, or adding xed
line to their mobile service.
They want one provider, with
one customer service, and one
simple interaction.
Improving business
environment
80%3
of Europe’s SMEs say
communication technologies
are fundamental to how they
operate today.
Market competition remains
intense for basic mobile
and xed communications.
Regardless of size, enterprise
customers are progressively
adopting digital ways of working
to improve their competitiveness
and provide exibility for
their workforce.
Demand for
continued network
innovation
450 Mbps
today’s peak performance for
downloads, up from less than
1 Mbps in 2004
Network innovation continues
to evolve rapidly as demand for
data increases, offering signicant
improvements in performance,
efciency and customer
experience. As we move towards
a “gigabit society”, innovation will
continue around mobile and xed
access solutions that enable even
faster, more exible and highly
secure exchanges of data.
What’s the trend? How we are responding?
More on our strategy to respond to these trends:
Pages 10 to 13
Data
50%
of our European mobile data trafc is carried on 4G networks
Vodafone was rated best or co-best for data services in 15 of
20 markets2. Our AMAP region now accounts for almost half
of all data trafc carried in the 2016 nancial year, compared
to 30% three years ago.
Network
With the completion of Project Spring we are ready to take on the
signicant data growth demanded by customers. We now have
73 million 3G customers in emerging markets and 47 million 4G
customers in total using speeds of up to 450 Mbps. Our high-speed
bre broadband has speeds up to 1 Gbps. We are working with
industry and universities on the next set of 5G standards, so we can
continue to improve speed and user experience.
Convergence
We’re evolving to meet customer needs across all converged
services, rst adding xed-line and then television service
offerings for homes and businesses. Customers can access
Vodafone services and content across multiple platforms, at their
convenience. With the rapid growth of the Internet of Things (‘IoT’),
we expect to see more demand for converged services across
wearable devices, and in the transport, retail and healthcare
sectors, amongst others.
Enterprise
Customers are increasingly looking for pre-integrated xed, mobile
and cloud services with simple, predictable and transparent pricing.
We have invested in building these service offerings at scale
helping us achieve a commercial advantage across our footprint.
More on Enterprise:
Page 13
Overview Strategy review Performance Governance Financials Additional information
Vodafone Group Plc
Annual Report 2016
09