Vodafone 2016 Annual Report Download - page 13

Context
a As smartphone penetration increases,
customers want faster and more reliable
data services
a Customers have multiple mobile devices
and want a single, worry free bill
a Customers who are on the move
demand high-denition video
capabilities and low latency speeds
(fast reaction time) for a more
enjoyableexperience
What we’re aiming for
a We’re encouraging customers to use 4G
to give them a better user experience.
The number of 4G customers more than
doubled to 47 million in the year
a We are driving data usage by bundling
content with 4G. Data usage grew 71%
in the year, and video usage accounts for
around one-third of data trafc
a Increasing smartphone penetration
also helps drive data usage. 58%
of our customers have a smartphone
in Europe, compared to 52% last year
a We want our customers to use our
services wherever they are. Our 4G
roaming network reaches 93countries
We are witnessing various drivers of data
growth across our markets: the increasing
penetration of smartphones, both in Europe
and emerging markets; high speed 3G and 4G
networks, delivering consistent high-denition
video to customers on the move; bigger screen
sizes for a richer experience; the proliferation
of “over-the-top” video services; and the rapid
migration of social media from the desktop
to mobile. Customers increasingly expect high
speed data coverage as much as they expect
reliable voice services. Our data strategy
is simple: to build high quality mobile data
networks, to encourage worry-free usage
at fair prices, and to offer products and services
tailored to specic needs and accessible
to a wide range of users.
Total data trafc across our network grew 71%
in the year, mainly reecting the increased
take-up of 4G. Driven by Project Spring,
we now offer 4G services in 21 of our markets,
with India, Turkey and Albania added during
the year. Our 4G customer base grew by 126%
to 47 million, with average usage typically
doubling when customers migrate from 3G
to 4G. From a commercial perspective, we are
focusing on offering customers worry-free
data usage, with bigger data bundles and more
inclusive roaming. We now have the most
extensive 4G roaming network in the world,
reaching over 90 countries. Despite this strong
progress, only 27% of our European customers
are using 4G, giving us signicant opportunity
for further growth.
Our network investments are yielding very
positive results in our major markets, with
a number of independent tests demonstrating
improvements in data coverage and
performance, and placing us very clearly
in the top tier of network operators. We ranked
best overall in Italy and Spain, best network
in London, and a strong number two network
overall in Germany.
In AMAP, progress has been equally strong.
In South Africa, we have built 3G coverage
to 99% and 4G coverage to 58% – signicantly
ahead of our competitors. We have developed
pricing plans that make data affordable
for customers across every demographic.
This has been further boosted by the success
of Vodafone-branded mobile phones and
tablets. With these products, we are able
to bring the same quality and functionality
as well-known phone brands to the market
at a much reduced price point, opening
up mobile data services for low income
customers for the rst time.
In India, we have experienced strong growth
in data over the last few years since the launch
of 3G in 2011. Through Project Spring, we have
extended our 3G network by 40,000 base
station sites to 55,000 since September 2013.
We now have 27 million 3G customers out
of a total base of 198 million mobile users.
Data
High speed, worry-free
Average smartphone usage in Europe
MB/month
2014
2015
2016
473
755
1,120
197m
of our customers use data, representing
43% of all customers, up from 40% last year
Enhancing customer services
M-Pesa, our money transfer service,
now has more than 25 million active
customers, an increase of 27% in the year,
boosted by market launches in Albania and
Ghana and supported by a network of more
than 261,000 agents in 11 countries.
Overview Strategy review Performance Governance Financials Additional information
Vodafone Group Plc
Annual Report 2016
11