Vodafone UK partners Virgin Media on public sector deal
December 7, 2011
|
Lambeth Council, a local authority in London, awarded a £100m (EUR115m) telecoms services contract to a joint bid from Vodafone UK (VfUK) and Virgin Media Business, the cable operator’s enterprise arm, after earlier deals with their mutual rivals BT Global Services and Orange UK were put out to tender.
The six-year deal, called Project Signal, will see the two providers supply services to around 180 council buildings and 4, 500 users, with VfUK providing fixed and mobile telephony services. Virgin Media Business will contribute data communications and wide area network infrastructure, including a public access Wi-Fi network in key council buildings and libraries. The new deal is said to contain an option to extend the contract for a further four years, as well as the possibility of expanding services to other organisations in the borough, via Lambeth’s “Co-operative Council” programme.
The Guardian reported that the Council hopes to achieve savings of £2m or more over the course of the contract, through “property rationalisation, the introduction of flexible mobile working for staff, and reduced call charges”. The former two elements indicate plans to implement Vodafone’s previously flagged flexible working framework, which VfUK also recently provided to West Berkshire Council, as well as implementing internally (Vodafonewatch, 2009.07).
The move comes following VfUK’s recent reorganisation of its public sector business, with new vertical units targeting central government, criminal justice, health, and local government clients (Vodafonewatch, #89).
Neither VfUK nor Virgin Media suggested their tie-up is more than a one-off, but the companies’ decision to team against BT does lend weight to suspicions over the status of VfUK’s two-way wholesale relationship with the incumbent, including on stagnant broadband and telephony offering Vodafone At Home (Vodafonewatch, #91 and passim).
Virgin Media: growing appeal as infill acquisition for VfUK?
Virgin Media’s successive large enterprise contract wins may strengthen its credibility as a fuller rival to wireline incumbent BT Group, and this could make it more interesting as acquisition prospect to a player like Vodafone, which, in other countries, has shown interest in wide area, fibre, and cable infrastructure, as part of its Total Communications strategy.
Virgin Media could boost Vodafone’s own credentials, at a time when reinvention of telcos as media companies is regaining currency (against the backdrop of growing fear of Internet Protocol-led mobile value-chain disenfranchisement). The cableco is the UK’s number-two pay-TV player and has experience as content creator. Further benefits for VfUK, which was relegated to third-place in the mobile segment by creation of Everything Everywhere, would include market consolidation and bulking up, and significant expansion of its consumer, business, and wholesale portfolios.
Such a deal would have echoes with other OpCos, notably Vodafone Germany, which subsumed the fixed operations of Arcor, operates in the pay-TV market, and has repeatedly been linked with possible cableco acquisitions. The mechanics of a deal could be convoluted, since benefits from optimising expensive debt and tax might be critical. Virgin Media currently has market valuation of £4.5bn (EUR5.3bn) and nearly as much debt.
[Further reference: Lambeth Council awards network services deal -- Guardian, 10 October 2011; Vodafone and Virgin clinch Lambeth deal -- Mobile Today, 12 October 2011.]
Read more
Vodafonewatch Report #96 October-November 2011 Executive Brief
December 7, 2011
|
- GROUP: Vodafone’s exit from Poland’s Polkomtel appeared set to conclude, after it and co-shareholders received approval from the country’s competition regulator for their sale to media mogul Zygmunt Solorz-Zak. However, the Group continues to be coy on whether it plans to retain a relationship with the operator when Solorz-Zak takes over. [p.4.]
- The last few months’ spike in OpCo board-level changes continued, following on in-country Chief Executive shake-ups and other moves to support Group-level emerging initiatives (particularly in India and the USA). Former TELUS executive Kevin Salvadori surfaced as the new Chief Technology Officer at Vodafone UK, following Jeni Mundy’s move to focus on the Verizon Communications partnership. New Safaricom Chief Executive Bob Collymore and Vodafone Romania counterpart Inaki Berroeta continued their recent management clear-outs by announcing a new Finance Director (John Tombleson) and Senior Director of Regulatory, Legal, and Corporate Affairs (Florina Tanase), respectively. [pp.7, 8.]
- Vodafone pulled few surprises in confirming that its Vodafone 360 web services offering is to be withdrawn at the end of 2011, although the Group has yet to outline how it will position and market some 360 components that are set to be retained or reworked. [p.9.]
- Vodafone saw two of its estranged Asian relationships morph into a competitive threat in India, with Bharti Airtel and SoftBank announcing a partnership to develop mobile services for the country. [p.11.]
- EUROPE: Vodafone Germany continued to meet resistance to its ongoing outsourcing programme, with workers protesting against planned ‘efficiencies’ within its fixed-line broadband customer services division. [p.15.]
- Vodafone Germany introduced LTE connectivity in its home city of Düsseldorf — the first leg of a programme to extend the technology to key urban areas in the coming weeks and months. The launch furthered Vodafone’s positioning of faster wireless networks as fixed-broadband enablers, with both landline and mobile plans on offer for residents of the city. Similarly, Vodafone Italy announced further progress in its 3G/HSPA-based 1000 Communities rural broadband programme, and Verizon Communications flagged intent to shortly roll out an in-home, LTE-based offering, using Verizon Wireless infrastructure. [pp.12, 16, 18.]
- While Germany’s LTE rollout progresses, uncertainty continues to dog the UK’s delayed auction of LTE-enabling digital dividend spectrum, with Ofcom announcing another round of consultation on the sell-off’s terms and conditions, and is now not expected to bring down the hammer until late-2012. [pp.19, 21.]
- Vodafone UK revealed a potentially interesting tie-up with cable player Virgin Media Business on a fixed-line and mobile services contract with London’s Lambeth Council. [p.22.]
- AFRICA, MIDDLE EAST, AND ASIA-PACIFIC: Vodafone Hutchison Australia continued efforts to put recent churn-inducing quality-of-service failures behind it, with the roll out of a new, multi-channel customer service system based on Alcatel-Lucent technology. [p.24.]
- India’s eagerly-awaited telecoms policy framework update was finally revealed, albeit in draft form. Some questions remained unanswered, and Vodafone itself had yet to respond publically, but other operators and investors appeared optimistic that the proposals — including frequency-trading and consolidation-related rule changes — could help ease competitive challenges and spectrum restrictions. Conversely, reports continued to indicate the government is taking a very close look at Vodafone Essar’s recent 3G roaming arrangement with Indus Towers’ partners Bharti Airtel and Idea Cellular — a deal geared towards offsetting the same pressures. [pp.26, 27, 29.]
- Vodafone Essar became the second emerging markets OpCo, after Vodacom South Africa, to release a mobile application store under the Group’s recent deal with white-label provider Appia. [p.29.]
- Activity continued to simmer around enterprise services in Africa, with Tim Gigg, Vodafone’s Head of International Transport Programmes, providing some interesting insight into the Group’s wide-scale regional infrastructure overhaul, to support OpCo’s Total Communications ambitions; and Kenyan associate Safaricom flagging the launch of a new family of hosted, on-demand IT services, dubbed SafaricomCLOUD. [pp.5-7, 31.]
- Local media reports suggested Safaricom is set to wrest at least partial control of its high-profile M-PESA mobile remittance system from Vodafone’s centrally-run platform – another reflection of the OpCo’s increasing confidence and capabilities in business-to-business services and infrastructure. [p.30.]
- Vodacom Group could be close to offloading its highly-challenged operation in the Democratic Republic of Congo, and progressing broader plans to reboot its regional presence, with talks reportedly taking place with several regional rivals over a sale of the business. [p.34.]
Vodafonewatch Report #96 October-November 2011 Snapshot
December 7, 2011
|
Table of Contents
1 Executive brief
4 Group
4 M&A
4 Polkomtel exit clears antitrust hurdle
5 Operations
5 Gigg on managing Vodafone’s African network rollout
7 Global Enterprise
7 People
7 People movement highlights
8 Global Enterprise
8 PARTNER MARKETS
9 Regulatory
9 Products and services
9 Vodafone calls time on 360 adventure
9 Suppliers
9 Supplier people movement highlights
10 Society
10 Terminals
10 Mobile terminal highlights
11 Investments and associates
11 Investments and associates
11 Bharti, SoftBank gang up in India
12 Investments and associates
12 VZ confirms rural LTE broadband plan
12 DirecTV partnership to reach market?
14 Investments and associates
14 VZW ties with VMware in emerging BYOD space
15 Europe Region
15 Germany
15 Workers protest against broadband outsourcing plan
16 VfD takes LTE live in first city
17 Czech Republic
17 Greece
17 VfGr to bid in November sale, despite Greek woes
18 Ireland
18 Italy
18 Portugal
18 VfP denies interest in state broadcaster sell-off
18 VfP hits out over new MTR cuts
19 Italy
19 Netherlands
19 United Kingdom
19 Wrangling forces another digital dividend auction delay
19 Take two for consultation
19 UK falls further behind rivals’ progress
21 Romania
21 Spain
21 Stalemate
22 Vodafone partners Virgin Media on public sector deal
22 Virgin Media: growing appeal as infill acquisition for VfUK?
23 VfUK backs rural coverage push
23 Public femtocell trials planned
23 VfUK ties with Velti on prepaid retention
24 Africa, Asia-Pacific & Middle East Region
24 Australia — Vodafone Hutchison Australia
24 VHA signs ALU to help revamp customer service
24 Customer lawsuit escaped?
25 Ghana
25 Egypt
25 VfEg adds to Callidus sales software relationship
26 India — Vodafone Essar
26 New telecoms framework draft published
26 Operators’ response positive
27 Government seeks to boost Indian vendors
27 3G roaming deal remains under fire
29 Mozambique — Vodacom
29 Fragmented auction terms come back to bite
29 VfEL extends Appia app store deal to India
30 Kenya — Safaricom
30 Safaricom wants to regain M-PESA control — report
30 Outsourcing and hosting arrangements to be reviewed?
31 New Zealand
31 Safaricom expands into IaaS with SafaricomCLOUD
31 Clash with Quintica tie-up?
31 Broad targeting — enterprise, governments, NGOs, SMEs
32 Regional plans flagged again
32 Seven Seas acquisition mooted
33 New Zealand
33 VfNZ cleared for rural broadband investment
33 2degrees unhappy
34 South Africa — Vodacom
34 MTN in talks to provide Congo exit — reports
36 Tanzania — Vodacom
36 NSN completes VdT billing upgrade
37 Index
Read more
Vodafone reboots Asian ties with Partner Markets; makes fresh start in Japan
October 19, 2011
|
Vodafone unveiled a considerable shake-up of its strategic alliances in Asia-Pacific, with plans to phase out several bilateral Partner Markets arrangements in favour of tie-ups with members of the regional Conexus Mobile Alliance.
The reshuffle — billed by Vodafone as a boost for its multinational corporate (MNC) and roaming operations, but also appearing to cause significant collateral damage to legacy interests and relationships — will see the Group retaining two existing Partner Markets arrangements in Asian countries not covered by Conexus — with Celcom, in Malaysia, and Dialog, in Sri Lanka.
New alliances have been formed in six countries, officially replacing existing Partner Markets tie-ups as and when they expire (imminently, in some cases, with others presumably set to be wound down in the interim):
- In Hong Kong, the realignment will create yet another Group connection with Hutchison Telecom, seen as one of the more likely candidates for future merger and acquisition activity involving the Group (Vodafonewatch, passim). On the way out, from December 2011, is Vodafone’s six-year relationship with SmarTone-Vodafone — which, while having created brand exposure (and, presumably, royalty fees) for the Group, appears to have had precious little value beyond that. Douglas Li, Chief Executive of SmarTone, said the two companies’ “interests have diverged for some while, and, after extended discussions, both parties agreed it best for each to pursue its own course”. “Customers will not be affected in any way, as all services will continue unchanged”, added SmarTone.
- In Japan, the Group will tie with market leader NTT DoCoMo — essentially drawing a line under Vodafone’s ill-fated former Vodafone Japan operation, and subsequent financial and operational ties with the business’s acquirer SoftBank Corp. While significant, this might not come as a complete surprise, considering a conspicuous lack of cooperative noise from either company since Vodafone disposed its remaining interests in SoftBank during late-2011 (Vodafonewatch, #87). Interestingly, the aims of the DoCoMo relationship appear especially wide, covering “global corporate sales, terminals, and best practice sharing”. This raises questions, notably relating to the fast-emerging area of enterprise-class cloud computing, where NTT’s Dimension Data unit is the leading regional competitor in Africa to Vodacom Business, and a rival to the major international cloud operations of Verizon Business (to which Vodafone has appeared to be getting closer) and the nascent efforts of other operating companies.
- In the Philippines, where Partner Markets has no presence, Vodafone will form a partnership with cellco SMART Communications. A slight oddity here is that Vodafone Qatar recently created a mobile remittance partnership with SMART’s main rival Globe Telecom, despite SMART also being an active player in that space (Vodafonewatch, #87). However, as a unit of Philippine Long Distance Telephone Company (PLDT), 21% of SMART is owned by NTT DoCoMo.
- In Taiwan, Vodafone will team with mobile operator Far EasTone — replacing its relationship with rival and market leader Chunghwa Telecom. Sacrificing Chunghwa is likely to have been a wrench for the Group, with the Taiwanese operator forming one of the more recent additions to the Partner Markets federation (in late-2009 — Vodafonewatch, 2009.11), and the relationship appearing relatively active, particularly around smartphone deployment and purchasing (Vodafonewatch, #89). On the other hand, the link with Far EasTone better aligns Vodafone with former investment and “strategic cooperation” partner China Mobile, to which the Taiwanese telco is affiliated. It is not known how long the Chunghwa deal still has to run.
- In Singapore, StarHub will replace M1 as Vodafone’s local partner following expiry of the latter’s Partner Markets agreement on 31 December 2011. StarHub’s owners include Qatar Telecom (Qtel, a Vodafone Qatar rival), NTT, and ST Telemedia. ST’s state-owned parent, Temasek, also controls StarHub’s domestic rival Singapore Telecom, with in turn holds major investments in Vodafone competitors Airtel (India and Africa) and Optus (Australia), as well as rivals to other Partner Markets.
- In Thailand, a tie-up with TrueMove will supplant Vodafone’s links with rival Telenor-owned dtac — again ending a relatively recent (March 2009) and outwardly active relationship, even leading at one stage to speculation that Vodafone could buy into the operator (Vodafonewatch, 2009.07, 2009.08-09, and 2009.12).
Elsewhere, Vodafone also “intends” to form partnerships with other Conexus members, which include: KT, in South Korea; Vinaphone, in Vietnam; and Indosat (another Qtel investment) in Indonesia. None of these countries are currently covered by Partner Markets, although there was previously a relationship with Axiata’s XL, serving Indonesia.
Vodafone will not seek a tie-up with Conexus‘s remaining members — India’s state-owned operators Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd, which compete with the Group’s Indian OpCo Vodafone Essar (VfEL).
Axiata left looking half-in, half-out — still on the M&A menu?
Asian regional group Axiata now looks awkward. Having seen two of its investments dropped (XL and M1), two stronger operating companies remain Partner Markets: Celcom (Malaysia) and Dialog Telekom (Sri Lankan). The group also holds a stake in VfEL rival Idea Cellular and is the dominant force in Conexus rival Asia Mobility Initiative (AMI Alliance). AMI’s eight members include one present (Celcom) and four past (dtac, M1, SmarTone-Vodafone and XL) Partner Markets, with five affiliated to Axiata.
Previously, Vodafonewatch has wondered whether Axiata was being patiently lined up as an acquisition candidate for Vodafone, to fill out South-East Asia in its global portfolio, although the likelihood was lessened by the objections considered inevitable to a deal that would see a multinational take out a Malaysian ‘national champion’, and the further political challenges of consolidating Idea into VfEL, although the latter element might be very appealing in terms of market and spectrum consolidation.
Swisscom partnership extended
Shortly after announcing the Asian realignment, Vodafone disclosed that it has extended its four-year Partner Markets alliance with existing member (and former Swisscom Mobile partner) Swisscom, which had been due for expiry in 2012.
Partner Markets refocus showing through
Partner Markets has always been one of the more difficult-to-decipher operations within Vodafone, with the Group historically offering little concrete information to explain the division’s role, or financial performance, and individual partnerships appearing to fluctuate wildly in terms of ambition and payback.
In the past, Vodafonewatch suspected the division was to a large extent about the Group’s corporate ‘ego’, reflected in its tendency to define Partner Markets‘ significance by the number of markets it brought into the Vodafone empire, rather than anything substantive. This appeared evidenced in deals like the SmarTone partnership mentioned above, which seemingly offered little beyond brand exposure; and — to go back further — the division’s grandiose but ultimately ill-fated tie-up with Latin American giant América Móvil, which petered out pathetically in 2008-09 (Vodafonewatch, 2009.06). There have also been rumblings of discontent from other members, seemingly unwilling to passively project the Group’s branding and services, and seeking a more “two-way” relationship.
Perhaps inevitably, a more clear-headed Partner Markets has emerged amid the more restrained Group management of Chief Executive Vittorio Colao — effected, since 2009, by a behind-the-scenes review of the division’s aims and focus (Vodafonewatch, 2010.04); and its amalgamation into the Group Commercial business run by Morten Lundal (Vodafonewatch, 2010.09).
Vodafone has still yet to articulate the unit’s new make-up, but the Conexus partnership, and other recent deals, point to a division working more closely with other parts of the Group (including Group Terminals, Vodafone Global Enterprise, Vodafone Internet Services, and Vodafone Procurement Company) to create tangible value. While this could be seen as subjugation of Partner Markets — by giving it a supporting role to other central Group functions, and adopting a more equitable relationship with partners — it might also see the division benefiting from improved stability, having seen its membership eroded significantly since the América Móvil exit.
A further interpretation is that Vodafone has truly neutered its global ambitions, with Conexus featuring many of Asia’s alpha players, with whom Vodafone was considered at loggerheads in its expansionist periods, while Partner Markets traditionally resembled a menu of acquisition candidates and the unaligned.
Vodafone can be seen taking a more assertive and ruthless role with Partner Markets, culling those lacking commitment or less attractive, and, in doing so, appearing firmly to prioritise ‘market’ over ‘partner’, and so seemingly also taking a shorter-term direction.
[Further reference: SmarTone and Vodafone agree not to renew their marketing cooperation -- SmarTone, 19 September 2011; M1 and Vodafone end partnership -- M1, 20 September 2011; Vodafone and Conexus mobile alliance form strategic partnership -- Vodafone, 20 September 2011; Vodafone to swap M1 for StarHub from Jan -- Business Times, 21 September 2011; Vodafone details new AP approach -- Telecom Asia, 21 September 2011; Smart, Vodafone form strategic partnership -- PNA, 26 September 2011; Vodafone and Swisscom to extend their strategic partnership -- Vodafone, 29 September 2011; Vodafone partnership could boost StarHub's data roaming business -- The Edge, 29 September 2011.]
Read more
Vodafonewatch Report #95 September-October 2011 Executive Brief
October 19, 2011
|
Table of Contents
1 Executive brief
4 Group
4 Partner Markets
4 Group reboots Asian ties; makes fresh start in Japan
5 Partner Markets
5 M&A
5 Axiata left looking half‑in, half‑out — still on the M&A menu?
6 Marketing
6 Swisscom partnership extended
6 Partner Markets refocus showing through
7 People
7 Plan to tap VfEL management pool flagged
7 People movement highlights
8 Products and services
8 Profile: RealNetworks’ Unifi
8 RealNetworks’ Allen Dickson
8 RealNetworks overview
9 Unifi — media‑ and technology‑neutral cloud locker
9 Unified library of digital life
10 Unifi photograph meta‑data
10 Ongoing development
10 Differentiated by content- and technology-neutrality
10 Added stickiness in the face of OTT
12 CSPs as media companies
14 Terminals
14 Technology
14 Suppliers
14 Supplier people movement highlights
15 Investments and associates
15 Mobile terminal highlights
16 McAdam intervenes as AT&T-T‑Mobile deal hits buffers
16 Opening of spectrum trading urged
17 Dividend implications for Vodafone
18 Isis names handset partners, pushes diversity
19 McAdam, Small back LTE as part‑wireline successor
21 Europe Region
21 Czech Republic
21 HSPA+ 64QAM update goes live
22 VfCZ opens Vodafone Gallery portal, ditches live!
22 VfCZ adds WeDo revenue assurance module
23 Germany
23 VfD mulls farming out broadband customer care
24 Hungary
24 VfH firms up Tesco deal; pencils in 2012 launch
25 Portugal
25 “Crisis” tax illegal — EC
26 Romania
26 Ireland
26 VfIr melds priority data access with new DC‑HSPA+ plan
26 QoS differentiation launched
27 Spain
27 ComReg publishes spectrum plans, finally
29 Italy
29 Malta
29 VfIt nets new spectrum in digital dividend sell‑off
29 LTE plans unclear, amid spectrum wait
29 TIM matches VfIt haul
30 Netherlands
30 VfN adds prepaid multi‑service in OTT fight
31 United Kingdom
31 3 seeks to derail mobile wallet alliance
32 Rumblings of One Net discontent mooted
33 Africa, Asia-Pacific & Middle East Region
33 Australia — Vodafone Hutchison Australia
33 Fiji
33 Australia — Vodafone Hutchison Australia
33 VHA re‑jigs 1800MHz spectrum for LTE rollout
34 India — Vodafone Essar
34 Egypt
34 VfEf seeks clearance for fibre project
34 India — Vodafone Essar
34 VfEL slams spectrum charge plan, again
35 Vodafone Essar and IBM renew IT services tie‑up
35 Myriad, VfEL tie on low‑footprint messaging
36 Qatar
36 November launch
36 Looser partnership than Telefónica’s
38 Kenya — Safaricom
38 Safaricom yields to margin pressure with price rises
38 Operating expenses a key priority
39 New Zealand
39 Tanzania — Vodacom
39 VfNZ in enterprise tie‑up with Kordia
39 South Africa — Vodacom South Africa
39 Vodacom tipped for Malawi entrance
40 VdSA winds down LTE trial; awaits spectrum
40 Vodacom SA roundup
41 Index
Read more
Vodafonewatch Report #95 September-October 2011 Snapshot
October 19, 2011
|
- GROUP: Vodafone practically wiped the slate clean with its presence in the Far East, announcing batches of regional arrivals and departures from its Partner Markets programme. Noteworthy new allies included Hong Kong’s Hutchison Telecom, adding to recent intertwining of the two Groups’ development; and Japan’s NTT DoCoMo, through which Vodafone has now effectively drawn a line under its troubled past Vodafone Japan business. Some of the partnerships — including the DoCoMo tie-up — look awkward, exposing conflict with other Group businesses or allies. However, generally, the changes fit in with recent signs of a much more coordinated approach by the Group to Partner Markets, re-focused on tier one and more committed players, rather than weaker potential acquisition targets; and emphasising support to other Group operations, rather than self-aggrandisement. [pp.4-6.]
- Vodafone again highlighted India as a likely source of future leaders for the Group, flagging a plan to handpick more Vodafone Essar executives for assignments elsewhere in the company. [p.7.]
- Vodafonewatch met with RealNetworks for an in-depth look at the software company’s launch partnership with Vodafone Germany on new ‘media cloud service’ Unifi, including the offering’s go-to-market ambitions, differentiation from rivals, and business case for operators. [pp.8-12.]
- The first partner emerged for Xone, Vodafone’s new, Californian research and development centre, in the form of Los Angeles-based technology group NantWorks [p.16.]
- Group executives will have been listening closely as Lowell McAdam, Chief Executive of Italy and US partner Verizon Communications, highlighted his desire to acquire more spectrum in the USA, a move with potential repercussions for Vodafone’s cash extraction from the Verizon Wireless joint venture. McAdam pointed to arch rival AT&T’s proposed purchase of struggling number four mobile operator T-Mobile USA as a sign of operators’ need for more frequencies. [pp.16, 17.]
- There was mixed news for the Group’s growing number of cross-network mobile wallet alliances, with: Verizon Wireless securing the support of several device partners for its Isis joint venture; but competition concerns rearing their head in Europe, following a move by 3 UK to prevent Vodafone UK’s equivalent scheme. [pp.18, 31.]
- EUROPE: Vodafone Germany furthered recent activity around outsourcing, and again signalled downgrading of DSL ambitions, by saying it is reviewing opportunities to farm out functions within its fixed broadband customer services operations. As with Vodafone Germany, Verizon Wireless pointed to Long Term Evolution as a partial replacement technology for DSL. [pp.19, 23.]
- Vodafone’s European HSPA expansion and enhancement programme continued, with: Vodafone Ireland introducing Dual Carrier HSPA+ alongside a quality-of-service differentiation system; and Vodafone Czech Republic releasing an HSPA+ 64QAM enhancement in parts of its network. The latter OpCo separately released a beta version of a new mobile content portal, with little Group involvement or functionality on show. [pp.21, 22, 26, 27.]
- Vodafone Hungary firmed up a previously mooted partnership with supermarket chain Tesco — securing its first mobile virtual network operator partnership, in a sign of the OpCo’s ongoing competitive and economic challenges. The partners plan to release mobile services in the first half of 2012. Meanwhile, the European Commission again clashed with the Hungarian government over the country’s controversial “crisis” tax, which has added to pressures over the last year. [pp.24, 25.]
- Vodafone Italy and incumbent rival Telecom Italia came away with the biggest spoils from Italy’s ‘digital dividend’ frequency auction, picking up spectrum in the crucial 800MHz band, as well as 1800MHz and 2.6GHz blocks. Fourth player 3 Italia lost out on the 800MHz airwaves, adding to perceived vulnerability to an acquisition by one of its larger rivals. [p.29.]
- AFRICA, MIDDLE EAST, AND ASIA-PACIFIC: Vodafone Hutchison Australia trumpeted a spectrum exchange deal with state rail authorities, saying it will strengthen previously flagged plans to rollout Long Term Evolution services across 1800MHz frequencies in the coming months. [p.33.]
- Regulatory problems continue to mount up for Vodafone in India, with: authorities taking interest in recent price increases, and Vodafone Essar’s 3G roaming arrangements with Bharti Airtel and Idea Cellular; as well as reports that the OpCo and rivals face questions following a government investigation into licence fee payments. Vodafone continued to attack India’s controversial, retrospective spectrum fee proposals, pointing out apparent contradictions with earlier government policy. [pp.34-36.]
- Vodafone Essar was reported to have renegotiated its long-running IT outsourcing contract with IBM, as well as elsewhere forming a second recent partnership, focused on bringing value-added services to India’s huge base of non-data users, in the form of a tie-up with Swiss mobile software developer Myriad Group on unstructured supplementary service data-based messaging tools. [pp.35, 36.]
- As with India, signs emerged of a pull-back in intense price competition in Kenya, with Safaricom announcing voice tariff increases as it again conceded pressure on margins. [p.38.]
- Malawi was again highlighted as a potential new market for Vodacom Group, following re-activation of the latter’s acquisition plans in Africa. Vodacom was reported to be planning an investment in mobile operator Telekom Networks Malawi. [p.39.]
Vodafone Q1 FY11–12 management update; business slows, but executives maintain guidance
August 31, 2011
|
Vodafone’s Q1 Interim Management Statement, covering the quarter to 30 June 2011, featured a challenging mix of promise and pain.
Revenue grew 1.5% at the Group level, but with significant difference between and within divisions. In the European Union, there was clear divide between a solid north and flaky south, while, in the Africa, Middle East and Asia Pacific (AMAP) Region, shadowy weakness in Australia and New Zealand held back the India and Vodacom powerhouses. Turkey, Europe Region’s own emerging market, was another performer.
Initially sounding detached, even bored, Chief Executive Vittorio Colao and Chief Financial Officer Andy Halford presented a satisfactory quarter that delivered expansion of mobile data and emerging markets revenue growth, offsetting continuing decline in traditional voice revenue, with asset sales continuing to strengthen the underlying corporate financial position.
Disconcertingly, however, executives were obliged to concede that momentum slowed on the previous quarter, and spent much time fending off probing questions from analysts who sought to quantify threats from over-the-top (OTT) services, cannibalisation of traditional voice and data services by Internet Protocol (IP) data, and macro-economic pressures.
Exchange rate fluctuations obscured analysis of operating company (OpCo) and divisional performance, flattering the weaker eurozone operations, and sapping the emerging market flyers.
Despite feeling confident enough to reiterate full-year and medium-term financial guidance, Colao and Halford repeatedly had to defend comparatively higher capital expenditure (capex) and weaker free cash generation, claiming these simply reflected phasing over the fiscal year, rather than worrying trends. Possibly departing from his script, Colao interpreted the capex spike as positive, since it predominantly reflected strong demand for data in Germany and South Africa.
The spectre of regulator-mandated cuts in mobile termination rates (MTR) haunted the results, notably decimating growth at the German, New Zealand, and UK OpCos. Vodafone treats MTRs as exceptional, excluding them from its favoured organic measures of performance, but truly they are an intrinsic market dynamic for the foreseeable future, so are exceptional only in timing rather than recurrence.
Vodafone Group, Q1 FY11-12 financial highlights
[Table omitted]
Vodafone, Q1 FY11-12 geographic revenue analysis
[Table omitted]
Vodafone Group, Q1 FY11-12 proportionate revenue analysis
[Table omitted]
Data drives growth, but IP cannibalisation unsettles
Data was again a standout in the quarter, with revenue up 25%, led by increased smartphone penetration and heavy promotion of associated ‘data attach’. Some analysts wondered whether smartphone growth might be slowing, but this was denied. While Halford conceded that momentum may have slowed in Q1, he said this was only because the company was cherry-picking customers.
The Group continues to see great opportunity for data, certainly over the next two-to-three years. Not only is there scope to raise smartphone penetration within the contract customer base, but the prepaid customers have scarcely been tapped. The company highlighted introduction in Italy of an integrated prepaid tariff, targeting the country’s unusually high proportion of premium customers in this segment. Also lauded was introduction of EUR99 smartphones.
“ I have to reiterate, we cannot treat consumer prepaid as one thing. There are high-usage customers that, for example, in Italy, will need to be managed exactly the same way as you manage contract [customers]. So, you give bundles: you give ‘daily bundles’, ‘weekly bundles’, whatever it is going to be. But, at the end of the day, the dynamic of migrating these customers into richer platforms with richer experiences, on data, on voice, on SMS, will actually be exactly the same as contract. ”
– Colao.
Promoting smartphone adoption with data-attach requires heavy commercial investment, activity that recently hurt margins in Spain and the UK. While boasting success growing data revenue, Vodafone clearly wants much more, with Colao repeatedly contrasting far higher data usage in the USA, but investors have concerns about both the impact of IP substitution on traditional voice and messaging revenue, and the danger of OTT interlopers. The Group is now promoting data attach and integrated tariffs with every smartphone sale, as it also seeks more multi-product sales.
“ What you [analysts] call the ‘cannibalisation’, I call ‘substitution’… [IP migration and tariff enrichment is] not cannibalising revenue, it’s substituting usage — or it’s going to. ”
– Colao.
At present, smartphone penetration is put at around 34% in Europe Region, varying widely across OpCos, with the UK highest at about 60%. Associated data attach is in the range of 60%-70%. Michel Combes, Chief Executive for the region, posited that penetration could reach 80% within two-to-three years, noting it is currently “just over 10%” in the prepaid segment.
“ The first battle was to put the smartphone in the hands of our customers. The second is now to drive up in the base by introducing more data. ”
– Combes.
What you call ‘cannibalisation’, I call ‘substitution’
Attention was drawn to the 18% of Europe revenue said to be ‘out of bundle’, with the company willingly playing up the idea that this is exposed to IP substitution, albeit hopefully to Vodafone’s integrated propositions.
Vodafone continues to deny it is seeing any material impact from OTT, saying, for example, that only about 2% of network traffic is voice-over-IP, such as Microsoft’s Skype. The Group claims that its enrichment and promotion of integrated tariffs will make IP substitution academic, with consumer choice influenced by features and services, rather than price. However, the Group’s ambitions to raise average revenue per user (ARPU) may place it at odds with low-cost, data-rich propositions, although these currently seem mainly the domain of smaller players.
“ The reality is that, the more we go into big bundles, the less people care about the economic element of VoIP, and they care more about the functionality. So, our job is to make sure the economic element is not a concern, i.e. that there are big bundles, and big offers and big promotions on prepaid, and big bolt-ons that can take away the economic concern, and then work either ourselves or in cooperation with third parties to provide good communication platforms, address books, social integration of different communication platforms, and so on. ”
– Colao.
Migration to integrated tariffs is also raising questions over Vodafone’s revenue segmentation because, ostensibly, allocation is astonishingly simplistic. According to Halford, an integrated tariff is merely pro-rated against comparable pricing of the full complement of components. This appears to ignore actual usage, while permitting all manner of shenanigans around transfer pricing and revenue allocation. Vodafone appeared to protest that anything more sophisticated is too complicated, which may indirectly be a criticism of the Group’s supposedly capable reporting and analytics capabilities.
Mobile internet overshadows mobile broadband; tablet disruption ahead?
With the rich data revenue growth, mobile broadband expansion (+6%) was far lower than mobile internet (+44%), but Vodafone played this down, noting that the former segment is lower margin and more demanding on network resources.
Interestingly, the company noted that, while young as a segment, tablet usage bears more similarity to smartphones than laptop computers. This was presented as a positive, portrayed as less demanding on network resources and more profitable, but could also be ominous.
Currently, tablets seem used primarily for media consumption and communication, typically via Wi-Fi. This could have worrying implications for a fast-growing segment that some consider very promising for mobile operators.
Further, on-network data usage by tablets could prove marginal, cannibalising mobile broadband while boosting smartphone mobile internet usage (through personal hotspots), rather than adding new data subscriptions. At present, tablets and e-readers both appear to be selling more in Wi-Fi-only format, suggesting the mobile industry may need to work harder to make mobile connectivity ubiquitous, or risk replicating the poor penetration achieved with portable computers, and creation of a disruptive new ghetto.
Together, this could accelerate awareness and acceptance of OTT applications and services, untethered off-network, and uncontracted or out-of-contract, ad hoc commoditised usage.
“ I’m a great believer and, personally, a great fan of tablets. However, keeping in mind that tablets, for the time being, have a behaviour which is more similar to the one of smartphones than to the one of heavy broadband — in the sense that they are media-lite consumption objects. And, of course, they also work a lot on Wi-Fi when they are in the home. ”
– Colao.
Mixed message: hints of slowdown, and uptick
Beyond the obvious sign, that revenue growth slowed despite eurozone operations being lifted by favourable currency movements, Vodafone’s quarterly statements were littered with hints of a slowdown. However, these were offset by suggestions of upturn elsewhere.
Having in recent years become notoriously cautious, executives’ lack of overt concern suggests they actually veer towards optimism, although their statements did precede a period in August 2011 when the worldwide geo-political situation started to seem unfathomable to everyone.
Slowdown?
- Denied as a wider trend by Vodafone, which pointed to growth at Group-level, Vodafonewatch detected pressure on messaging revenue, notably in AMAP and Spain. It is unclear to what extent revenue cannibalisation, IP substitution, and tariff optimisation are playing a part.
- Vodafone is facing challenges in Australia (customer disconnect following network outages) and New Zealand (MTRs).
- Growth in Turkey is predicted to slow, and price elasticity of demand may now be tested as Vodafone endeavours to raise prices.
- Maintaining competitiveness in Europe could be expensive, with a double-hit from raising value (lowering prices or ‘enriching’ tariffs) and subsidising smartphones. The situation is exacerbated by dangers from IP and OTT substitution, and economic weakness in southern Europe and possibly also the UK. This transition is particularly pronounced in Spain, where the historically strong OpCo is haemorrhaging revenue while it reinvents itself as a lower cost, value operator, in the face of aggressive competition from smaller players.
“ I see a protracted period of pressure for us on revenues in Spain because of this lower pricing structure, but, overall, in the long term, I think it’s going to be a much better structure than what we came in (with high prices and high commercial costs). ”
– Colao
Uptick?
- Fixed-line business appears to be strengthening, with both consumer and enterprise (notably One Net) flavours. Strong broadband additions in Italy and the re-emergence of Total Communications as a strategic mantra led Vodafonewatch to wonder whether fixed access may play an increasing role in strengthening customer relationships in developed markets. With the business in IP transition, and competition, pronounced, greater stickiness provided by multi-play and fixed access may be highly valued. Strengthening converged and IP television propositions would fit here.
- The Indian market continues to show signs of stabilisation, and even improvement, in terms of outlook and stabilisation of ARPU. Churn levels remain appalling, however.
- Vodacom’s international operations appear to be rebounding fast, Ghana strong, and the Egyptian market showing ‘initial signs of recovery’. Declines in Greece, Italy, and Portugal may also have bottomed out, although Vodafone is understandably cautious in the light of further fiscal tightening in these markets — the Group believes it has successfully rebased its competitive position in its southern Europe markets.
- Vodacom may be rapidly maturing into an advanced market, with the proportion of revenue derived from data already higher than Italy and Spain, and matching the average for the Europe Region. It makes an interesting contrast with its regional sister India, where total voice minutes are almost twelve-times higher and the customer base more than three-times bigger, but ARPU barely one-quarter and revenue lower. Consequently, Vodafone must desperately be hoping that India sees further market polarisation and consolidation, and rapid adoption of 3G and mobile data (where it is far behind Vodacom).
- The Europe Region grew its enterprise customer base by 7%, providing a fillip to German and Italian OpCos — markets where fixed line also out-performed. Vodafone appears to consider these customers less exposed to IP cannibalisation and OTT, due to separation of user and buyer relationships, with the latter group’s predominant pursuit of price reduction said to be offset by growing purchases of multiple products.
Other positives
- Vodafone’s debt position is the best it has been for four years, giving flexibility for in-market acquisitions across both of its regions, or other strategic activity. Debt may now reinflate somewhat, as the current £4bn share-buyback proceeds over the next twelve months, and further spectrum and licences are acquired, but additional cash will be booked from operations, sale of the Polkomtel stake, and a large dividend from Verizon Wireless (see separate report). The buy-out of Vodafone Essar is not significant here because the related options were already accounted for.
- Viability of Long Term Evolution (LTE) technology, which is being commercialised in Germany, appears promising, with executives saying the Group believes it can maintain the 9Mbps average usage speeds and utilise the technology for fixed access ‘replacement’ in rural and lower density urban areas, and as part of mixed access solutions in denser conurbations.
- The network demands from meeting growing data usage are apparently being managed comfortably, with the Group seemingly benefiting from the rebalancing of growth from mobile broadband to mobile internet.
Mixed messages
- Europe increased its proportion of contract customers to 38.1%, but big jumps in Turkey and the UK masked decline in Germany. AMAP’s emerging markets’ contract base slid, pulling down the Group-level proportion.
- Yet again, Vodafone practically ignored its not insubstantial Australia and New Zealand operations, fuelling perception they are not just out of favour, but likely being hawked around private equity and regional communications groups. An ideal exit might see an exchange involving Hutchison Whampoa’s European 3 assets. Indeed, likelihood of such a transaction is seemingly heightened by Vodafone’s reluctance to ensnare the Hong Kong group in the Vodafone Essar tax dispute in India, where Hutch, as the seller involved, might naturally be considered to be ultimately liable.
- Vodafone did nothing to deny expectations that Vodafone Essar will go public via an initial public offering (IPO), but Colao noted that this is very unlikely to take place within twelve months, and not before ownership, tax, and regulatory challenges have been resolved (see seperate report). However, the IPO of the Indus Towers infrastructure-sharing joint venture is said to be proceeding, albeit slowly.
Key performance indicators
Vodafone customer base analysis, 30 June 2011
[Table omitted]
Vodafone OpCo average revenue per user and churn analysis, Q1 FY11-12
[Table omitted]
[Further reference: Vodafone Group plc Interim Management Statement -- Vodafone Group (PDF), 22 July 2010.]
Read more
Vodafonewatch Report #93 July-August 2011 Executive Brief
August 31, 2011
|
- GROUP: Decoding Vodafone’s Q1 management update made for a thankless task, finely balancing promise and alarm. Regions were divided: Europe between a sprightly north and a depressed south, AMAP powered by emerging markets but shackled by Tasmanian turmoil. Exchange rates propped up Europe, but crimped AMAP. Underperforming OpCos may be perking up, as powerhouses lose momentum. This all comes before factoring in investor panic over the dangers of Internet Protocol and over-the-top (OTT) data services cannibalising lucrative voice and messaging revenue, and a backdrop of wider global economic mayhem. The deciding indicator could be Vodafone’s own innately cautious executives, who felt confident enough to reiterate financial guidance for the full fiscal year, fuelled by a two- to three-year smartphone and associated mobile data bonanza. [pp.4-16.]
- The cannibalisation threat of OTT service usage remained a prominent OpCo talking point in the results presentation, coming with Vodafone Netherlands announcing mobile data tariff rises in response to the country’s introduction of internet neutrality regulations in June 2011. [pp.7, 8, 42, 43.]
- In India, the Group sold a 5.5% stake in Vodafone Essar to pharma group Piramal Healthcare, enabling Vodafone to claim continued compliance with foreign ownership rules, following its ongoing buyout of Essar Group. The move also gives Vodafone a lower-maintenance and short-term junior partner to hold things in place until a wider ownership overhaul expected in 2013, as well as strongly hinting that additional value will be ‘discovered’ over this period. [pp.17, 18.]
- Vodafone confirmed it is to gain a timely cash flow boost later in FY 10-11 with receipt of a $4.5bn (£2.8bn/EUR3.2bn) dividend from US associate Verizon Wireless — ending partner Verizon Communications’ restriction of cash outflow from the mobile operator since 2005. The Group continued to develop improving relations with Verizon by appointing Vodafone UK Chief Technology Officer Jeni Mundy to a global Director of Products and Innovation role, where she will act as a go-between for the two companies’ collaboration programme. [pp.19, 20.]
- A string of senior-level executive changes were announced by several Group OpCos – both in the form of: secondary reshuffles by the numerous new in-country Chief Executives who have been appointed in the last year; and further top-level changes by the Group, as challenges remain evident across several markets. Group fixed-line luminary Diego Massidda joined Vodafone Hungary as Chief Executive, in a potential harbinger of expansion ambitions at the troubled OpCo, while Partner Markets Head Richard Daly returned to the Arab world as Chief Executive of Vodafone Qatar. Vodafone Egypt, Vodafone Qatar, and Vodafone Romania also saw further changes in C-level positions. [pp.20-23.]
- Group activity continued to bubble away around near-field communication (NFC) services, with Vodafone reported to be working with rival European operators on the creation of a new logo for marketing the contactless transaction technology; and Vodafone Germany and Vodafone Hungary signing the latest in a string of cross-operator partnerships on NFC service rollout. [pp.23-25.]
- Vodafone extended its global relationship with Norwegian browser developer Opera Software as the Group continues to focus on galvanising data usage in emerging markets, particularly India. [p.30.]
- EUROPE: Vodafone Czech Republic is said to be in talks with rivals Telefónica Czech Republic and T-Mobile Czech Republic over a Long Term Evolution (LTE) infrastructure sharing deal, as signs continue to emerge of greater interest by Vodafone in outsourcing and other collaborative arrangements around next-generation wireless and wireline network rollout. [p.35.]
- Vodafone Hungary is to face additional competition after the country’s government confirmed plans to auction new 900MHz spectrum later in 2011. [p.40.]
- Vodafone continued its policy of “selective” and accretive in-market takeovers with news that Vodafone Turkey is to buy domestic telecoms and IT services player Koç.net, prospectively more than doubling its fixed-line revenue, and supporting ongoing enterprise expansion ambitions. Vodafone Netherlands secured clearance for the acquisition of mobile retailer BelCompany it announced in March 2011. [pp.43, 48, 49.]
- Vodafone reiterated warnings to governments over pricing of new spectrum, amid the prospect of sizeable outlay on frequency resources in the coming months and years. Vodafone Spain became the second Europe Region OpCo to gain new ‘digital dividend’ frequencies, while India and Italy sought to push forward potentially chaotic similar spectrum sales. [pp.46, 47, 55.]
- AFRICA, MIDDLE EAST, AND ASIA-PACIFIC: Emerging markets OpCos furthered ambitions to push beyond mobile voice, with Vodafone Ghana’s new Vodafone Business Solutions releasing a Wireless Office facility for corporate customers, and Vodafone Qatar announcing a provisional agreement to interconnect with the emirate’s National Broadband Network. [p.54, 58.]
- Vodafone Egypt continued to appear off-balance or worse, following the country’s recent political upheaval and the OpCo’s recent performance downturn: inviting further criticism over its enforced network shutdown during Egypt’s revolution via another misdirected advertising campaign. It also remains subject to a murky regulatory outlook on issues such as mobile virtual network operator liberalisation — key to the Group’s relationship with local junior partner Telecom Egypt. [p.51.]
Vodafonewatch Report #93 July-August 2011 Snapshot
August 31, 2011
|
Table of Contents
1 Executive brief
4 Group
4 Vodafone Q1 FY11-12 management update
4 Business slows, but executives maintain guidance
5 Partner Markets
5 Table 1. Vodafone Group, Q1 FY11-12 financial highlights
5 Table 2. Vodafone, Q1 FY11-12 geographic revenue analysis
6 Marketing
6 Table 3. Vodafone Group, Q1 FY11-12 proportionate revenue analysis
7 Society
7 Data drives growth, but IP cannibalisation unsettles
8 What you call ‘cannibalisation’, I call ‘substitution’
9 Mobile internet overshadows mobile broadband; tablet disruption ahead?
10 Mixed message: hints of slowdown, and uptick
10 Slowdown?
11 Uptick?
12 Other positives
12 Mixed messages
13 Key performance indicators
13 Table 4. Vodafone customer base analysis, 30 June 2011
16 Table 5. Vodafone OpCo average revenue per user and churn analysis, Q1 FY11-12
17 M&A
17 Vodafone finds lower maintenance partner, post-Essar
17 VfEL now highly bullish, following Essar exit — coincidence?
18 A holding measure, ahead of wider overhaul
18 Next step tabled for 2013
19 Finance
19 Vodafone nets £2.8bn as VZ lifts dividend ban
19 Dry spell over, for now
19 Group gains financial, strategic, political capital
20 Nothing’s permanent
20 People
20 Group lieutenants take over in Hungary and Qatar
21 Changing of guard continues, post-Group restructuring
22 People movement highlights
23 Products and services
23 Operators continue to circle wagons on NFC
23 ‘Three waves’ emblem set for facelift
24 NFC alliances now in six markets
24 Hungarian Mobile Wallet Association formed
24 mpass alliance to be expanded, given ‘autonomy’
25 Alliances bring homogenisation, regulatory risk
27 Vodafone cosies up with Android Market in app reboot
27 In-Market channel launched
27 Long‑mooted operator billing deal announced
28 App ‘plan b’ now hitting market
29 Suppliers
29 Regulatory
29 EC plans roaming market restructure, ups competition
29 Retail data fee caps introduced
29 Wholesale opportunities, threats emerge
30 Investments and associates
30 Suppliers
30 Vodafone, Opera extend browser relationship
30 India the main growth driver
31 Investments and associates
31 Terminals
31 Mobile terminal highlights
33 Investments and associates
33 Investments and associates
33 VZW: sales boost expected with RadioShack tie‑up
33 Deal a win‑win‑win
34 Investments and associates
34 VZW: LTE Innovation Center opens doors
35 Europe Region
35 Czech Republic
35 LTE network‑sharing deal under discussion
36 Czech Republic
36 Germany
36 Q1 FY11-12: VfD sneaks back into sales growth
36 Table 6. Vodafone Germany, Q1 FY11-12 revenue analysis
37 VfD boosts metro LTE push with backhaul tie‑up
37 LTE competition yet to ignite
38 Greece
38 LTE to sideline DSL
38 VfD to retain 900MHz spectrum, at least until 2016
40 Hungary
40 Fourth mobile licence sale confirmed
40 VfH to be freed for UMTS900 move
41 Ireland
41 Italy
41 Q1 FY11-12: VfIt seeks to innovate amid price pressure
41 Table 7. Vodafone Italy, Q1 FY11-12 revenue analysis
41 Data, fixed‑line sales boosted
42 Malta
42 Portugal
42 OTT fight expands to prepaid
42 Netherlands
42 Operators tweak tariff plans as OTT usage bites
43 VfN at forefront of OTT competition
43 BelCompany buy approved
43 VfN retail base to triple
44 Romania
44 Vodafone TV expanded to Netherlands with fibre tie‑up
44 Vodafone eyeing more TV alliances
45 Spain
45 Q1 FY11-12: Spain ‘worse before it gets better’
45 Table 8. Vodafone Spain, Q1 FY11-12 revenue analysis
46 Top three win race for digital dividend airwaves
46 Upstarts gain another foothold
47 Turkey
47 VfT adds LogMeIn
remote fix tool
47 Italy next
47 Q1 FY11-12: VfT hits record growth, but slowdown ahead
47 Table 9. Vodafone Turkey, Q1 FY11-12 revenue analysis
48 VfT boosts fixed‑line ambitions with Koç.net takeover
49 United Kingdom
49 Deal sees B2B boost; consumer broadband debut
49 Fixed‑line presence to double
50 Q1 FY11-12: MTR cut hits home
50 Table 10. Vodafone UK, Q1 FY11-12 revenue analysis
50 VfUK leads Group on data attach
50 Fixed‑line activity being resurrected?
51 Africa, Asia-Pacific & Middle East Region
51 Egypt
51 Australia — Vodafone Hutchison Australia
51 Egypt
51 TE confident on MVNO impasse
51 Lack of regulatory clarity a worry for Group/TE relations
53 Australia — Vodafone Hutchison Australia
53 Ghana
53 India — Vodafone Essar
53 Q1 FY11-12: Group “encouraged” by Indian rate rises
53 Table 11. Vodafone Essar, Q1 FY11-12 revenue analysis
54 VfEL firms up 3G roaming deal with Indus partners
54 3G reach extended to twelve regions
55 India — Vodafone Essar
55 India to start ball rolling on 4G auction
55 “Eight licences‑per‑circle” planned — a blow to consolidators
56 Kenya — Safaricom
56 Vodafone supports new CDMA data MVNO
56 No master plan evident
57 New Zealand
57 VfNZ, 2degrees wrangle over auction terms
58 Qatar
58 VfQ formalises ties with national fibre scheme
58 AMAP OpCos diversifying
59 South Africa — Vodacom
59 VdSA grapples with post-outage PR storm
59 BlackBerry dominating Vodacom smartphone sales
60 Index
Vodafonewatch Report #92 June-July 2011 Snapshot
July 13, 2011
|
Table of Contents
4 Group
4 M&A
4 Polkomtel exit confirmed, Vodafone forgoes buy-out
4 A clean break
4 Group keeps power dry
5 Marketing
5 Sale over, for now
6 Group reels from Indian double whammy
6 CGT cost “could be $5bn”
7 Essar buyout gets more expensive
8 Finance
8 City abuzz over Halford VZW dividend remark
9 Global Enterprise
9 Investments and associates
9 Vodafone to support USA photo‑sharing device vendor
9 VGE in connected vending machine tie‑up
10 Investments and associates
10 People
10 People movement highlights
11 “…out of context…”
11 Products and services
11 Epting — in‑app billing platform to launch “soon”
13 Vodafone, Microsoft agree SME tie‑up Mk. II
13 BPOS deal updated; more quid pro quo
14 Investments and associates
14 Orange, Telefónica also partner Microsoft
14 Regulatory
14 New EC rules on roaming imminent
15 Investments and associates
15 Suppliers
15 Supplier recruitment highlights
16 Terminals
16 Mobile terminal highlights
17 Interview
17 Arvind Rao, Chief Executive of OnMobile Global
17 Interview opportunity
17 Q&A: OnMobile’s Arvind Rao
18 OnMobile trying to start flow of emerging markets VAS innovation into Europe…tackling resistance
19 Operators facing tectonic shifts, amid disintermediation threat by Google, Apple et al
20 Challenges faced by suppliers around Vodafone’s “coalition” structure
20 Ringback tones…the practicalities
22 Indian VAS sector recovers… but 3G a distraction?
25 Europe Region
25 Albania
25 Germany
25 VfD to expand LTE to Düsseldorf, Krefeld
25 T‑Mobile gets in first, though
26 Czech Republic
26 VfD releases RealNetworks’ Unifi media ‘locker’
27 Greece
27 Operators to take 900MHz renewal fight to EC — report
28 VfGr talks up femtocells’ defensive qualities
28 Femtocells now in nine markets, with two more in pipeline
29 Hungary
29 VfH to pilot LTE TDD in Budapest
30 Italy
30 Ericsson network outsourcing deal confirmed
31 Fibre alliance plans released
32 Netherlands
32 New entrants to gain from 2012 auction
33 Portugal
33 Top management refresh mooted
33 VfP on lookout for new NGN allies
35 Romania
35 Velti trumpets role behind Promo4U
35 Czech, UK projects also in pipeline
36 UK
36 Spain
36 Spectrum reshuffle kicks off
36 Vodafone freed for 900MHz 3G rollout
36 Demand apparently high for 800MHz spectrum
37 VfUK hands ad account back to WPP — report
37 3 UK cries foul over m‑commerce JV “exclusion”
38 Africa, Asia-Pacific & Middle East Region
38 Egypt
38 Australia — Vodafone Hutchison Australia
38 VHA owns up to another back‑end glitch
39 Ghana
39 Chinese, German banks back VfGh via IFC syndicate
39 China participation, competition, development benefits noted
39 Vodafone, IFC quiet on financial smallprint
40 Fiji
40 “Considerable” opportunity for IFC support at other Vodafone OpCos
40 VfGh’s need for funds “urgent” — IFC
41 India — Vodafone Essar
41 Clock ticking on Indian 2G charge decision
41 Partners continue to dampen Indus IPO talk
42 Kenya — Safaricom
42 New Zealand
42 ZTE highlights VAS tie‑up with VfEL
44 Qatar
44 Exit interview: VfQ’s Michael Portz
44 Getting out of telco space as Google, Apple advance over‑the‑top
44 Setting up VfQ; balancing resource pressures with need to look outside Group
45 Maher the driving force
46 Qtel — “it was like they wanted to kill us”
47 VfQ targets 2012 fixed‑line entrance
48 South Africa — Vodacom
48 BEE ownership extension mooted
49 Vodacom to lead push for Group energy savings
49 ‘Per‑node’ emissions targets being developed for emerging markets
50 Index
Read more
