Vodafonewatch October 2009 Executive Brief

28 October 2009

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Executive Brief from Vodafonewatch, issue 2009.10. Click through for: an Extract from this month’s report; the Issue Snapshot; or to contact us for more information about the full 70 page issue, this industry standard monthly report service, and ongoing subscription access.

  1. GROUP: Vodafone announced it will transfer the listing of its American Depositary Receipts from the New York Stock Exchange to rival exchange NASDAQ. Vodafonewatch’s updated orgchart tracks the evolution of Vodafone’s structure and leadership. [pp.3,4-6.]
  2. Vodafone made one of its most significant value-added service strategy changes for years with the launch of new web service platform Vodafone 360 . The offering, a replacement for the operator’s outmoded Vodafone live! portal, is geared towards building services around location, m-commerce, and social networking. The company hinted at upcoming plans around location-based marketing, and expanded its DRM-free content portfolio through a deal with Warner Music. Vodafone also announced a partnership with EMC subsidiary Decho to market a cloud-based data-recovery service, branded Vodafone PC Backup. [pp.7-9,11,12.]
  3. Vodafone’s UK and Ireland OpCos agreed terms with Apple to finally bring the manufacturer’s iPhones to market, taking the devices’ penetration of Vodafone territories to 13. Also on the device front, Vodafone and Research in Motion announced the launch of the second-generation BlackBerry Storm 2 , although the deal appears less wide-ranging than the partnership on the device’s predecessor. Vodafone said the Storm’s criticised touch screen has “significantly” improved. [pp.10,13.]
  4. Vodafone and its fellow challengers to the European Union’s roaming caps suffered a blow when the Advocate General at the European Court of Justice deemed the restrictions to be justified. [pp.15.]
  5. The Vodafone Foundation launched the UK tranche of its World of Difference charity secondment programme, and a new round of its Wireless Innovation Project , which seeks out mobile technologies that can be used to solve “critical problems” around the world. [pp.15,16.]
  6. Verizon Wireless (VZW) finally embraced Android through a strategic partnership with Google, and gave reassurances that its ongoing 4G rollout is on track. Meanwhile, a wider reorganisation by parent Verizon Communications saw the appointment of new marketing and operational chiefs at the cellco. [pp.17-19.]
  7. WESTERN EUROPE: SFR partner Sofialys trumpeted user participation in the operator’s permission-marketing platform, while, in Germany, Vodafone is said to be working with Alcatel-Lucent on a smart-metering project for municipal utility Stadtwerke Pasewalk. In Greece, Vodafone’s strategic partnership with Hellas Online (HOL) gained backing from HOL shareholders, but not from some Vodafone employees. Vodafone Ireland highlighted environmental initiatives at its call centre. [pp.20-22,24,25.]
  8. Augmented reality start-up Layar won Vodafone Netherlands and Vodafone UK’s Mobile Clicks application development contest, while Vodafone Spain and local airline Spanair updated their mobile boarding pass system. [pp.26,30.]
  9. Vodafone UK announced a restructuring of its legal team, appointed Affiliate Window and TradeDoubler to handle its online affiliate marketing account, and, unusually, secured an all-fixed-line enterprise deal with Rolls-Royce. The operator’s mobile broadband advertising practices came in for criticism, however. [pp.31,33.]
  10. CENTRAL EUROPE: Vodafone Czech Republic continued to refreshen its handset portfolio, with five new devices, while the local telecoms regulator came under European pressure on mobile termination rates. [p.34.]
  11. Vodafone maintained silence over plans for its stake in Polkomtel as speculation mounted around co investors’ holdings. A bid from Egypt’s Orascom for a stake in the operator was mooted, while further reports suggest Polkomtel itself may be hunting acquisitions. [p.36.]
  12. Vodafone Hungary selected Portugal’s WeDo to update its revenue-assurance system, while Vodafone Turkey handed Anel Telekomunikasyon Elektronik Sistemleri a network-maintenance contract. [pp.35,37.]
  13. AFRICA: Controversy continues to dog Vodafone over the 2008 acquisition of Ghana Telecom, with the release of details from a government investigation into the deal. Nevertheless, the operator pushed forward its modernisation plans, reportedly reaching a union agreement over its redundancy programme, and revealing that it will decommission nearly all exchanges to improve network efficiency. [pp.38,39.]
  14. Safaricom’s expansion plans continue in earnest, with: the launch of the first tranche of its bond programme; a deal with vendor Alvarion to expand its WiMAX infrastructure; and the long awaited introduction of cross border mobile money transfers following trials initiated with Vodafone and Western Union in 2008. Vodacom continues to suffer from both the economic downturn, writing down a significant chunk of late-2008 acquisition Gateway, and government pressure on mobile termination rates. The operator launched a new mobile tracking system in partnership with stolen vehicle recovery specialist Tracker. [pp.41-47.]
  15. ASIA-PACIFIC: Vodafone Hutchison Australia made further progress in its post-merger rationalisation, reportedly completing the reselection process of head and state office employees. The company also distributed request for proposals on the integration of its two constituent firms’ networks. [p.48.]
  16. China Mobile passed the 500 million customer-milestone, albeit at a much-decelerated rate of growth from recent years, and progressed preparations for both its upcoming e-reader launch and longer term 4G rollout. Chief Executive Wang Jianzhou reiterated ambitions to expand internationally, with an eye specifically on Asia. [pp.50-52.]
  17. Concerns over growth prospects were also in focus in India, following domino-like tariff cuts from the major players, triggered by aggressive pricing by new entrants. Vodafone Essar targeted a new avenue for expansion by forming a division to focus on the business market. Rival and Vodafone investment Bharti Airtel had disappointing news on overseas growth prospects, announcing that merger talks with South Africa’s MTN had hit the buffers for the second time in as many years, thanks to regulatory barriers. [pp.54-59.]
  18. Vodafone New Zealand proposed new concessions on MTRs, following pressure from the country’s Commerce Commission, but announced a major win in the enterprise segment. [pp.60,61.]
  19. MIDDLE EAST: Vodafone Egypt said it will launch a new mobile money transfer service by the end of the year, as part of the promised revamp of its existing Vodafone Cash offering. Vodafone Qatar claimed to be taken by surprise by the popularity of an overseas call promotion, forcing the new entrant to double its international voice capacity. [pp.62,64.]

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Issue: 2009.10
Covering: late-September to late-October 2009
Published: October 2009
Next issue: November 2009

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