Nick Read, Chief Financial Officer (CFO) of Vodafone, underlined the increasing interventionism of his Group Finance division by revealing it is in the process of deploying an international “customer profitability analytics” (CPA) platform to support its ongoing Fit for Growth margin uplift programme.

Read made a brief reference to the new system during his presentation within Vodafone’s May 2017 annual results investor forum, positioning it as a “key enabler” for the expansion of Fit for Growth he has flagged the Group is undertaking during the current financial year (Vodafonewatch, #150 and see separate report). Although noting it was “currently under development”, he said the Group was already “rolling out this platform across our markets”.

Read billed the platform as enabling Vodafone’s leadership to receive “multiple views of profitability” – for example, by geography, distribution, segment, proposition, and customer.

“ Using our single global instance of SAP, combined with our data warehouse and data analytics tools, we are able to determine the profitability of our business at a micro level, moving beyond the flawed focus on averages to the drivers of cost and profitability at an individual customer level. ” – Read.

All in the numbers

The CPA project is a clear nod to the increasing influence Read is cultivating via Fit for Growth – which launched in 2015 with aim to ensure core earnings growth is maintained as Group revenue (prospectively) recovers.

The programme is supported by a “cost efficiency management” department within Group Finance (seemingly led by Deputy CFO Margherita Della Valle), and is underpinned by initiatives such as a “tear-down” approach to procurement, zero-based budgeting targets for OpCos, and consolidation of Group IT systems.

Although no detail has been offered on the CPA platform’s roadmap or partners, the new system presumably builds on the Global Finance-led, SAP-based EVO enterprise software transformation Vodafone has conducted over the last decade.

It also follows a “complete review” of the Group’s IT estate that is said to have been conducted by Chief Technology Officer Johan Wibergh, in the period since his 2015 appointment (Vodafonewatch, #142).

Image: © Bloomberg.

Table of Contents

Management update

6 Vodafone re-commits to efficiency amid shaky sales
7 Headlines — Shrunk for Growth
8 Group delivers answers, but to the right questions?
9 Solidity across Group, but currencies and UK blot copybook
12 Outlook: more of the same, stolid progression
12 Targets dialled upwards, but still ample room for manoeuvre
14 Spending: Capex and opex squeeze maintained
15 Fit for Growth next steps

Strategy

17 Vodafone reiterates possibility of post-Brexit reboot

M&A

19 Emerging markets rejig sees Safaricom change hands
20 Further shareholder machinations required
21 Rise of the periphery
23 Local politics
24 Integration hopes – enterprise ecosystem opportunities, M-PESA leg-up
27 Vodafone Malta control jettisoned via Melita tie-up
27 Group now a back seat driver
28 Little detail on plans for integration or future of Melita mobile assets

Global Technology

31 Vodafone lays into NB-IoT naysayers, dabbles with LTE-M
31 It’s all coming together, honest
32 Momentum
34 Cat-M1 out the bag
35 Colao still cool on 5G but sees fixed wireless gain

Group Commercial

37 South Korea’s KT joins APAC Partner Markets exodus
37 First step towards regional rebuild
38 Vodafone flags progress with omni-channel initiative
39 Funnel of love
40 Another vendor warning on NFV
40 Group pivoting to “Digital First”…
40 … and gradually building analytics activity

Group Finance

41 CFO gains new eye in the sky, to support cost drive
41 All in the numbers

Supply chain

42 Allot talks up security deal’s top-line impact

Q4 FY16-17

44 Growth-lite Europe ups focus on costs
45 A future firmly framed by Fit for Growth
46 Read acts on UK costs after Fit for Growth fail

Czech Republic

47 VfCZ eyes 3.7GHz spectrum add-on
48 T’s and C’s restrict VfCZ haul
48 Slow pipeline
48 Licence rejig strengthens existing holdings too

Germany

50 VfD expands 500Mbps LTE speeds across Germany
50 Fixer upper
51 Kabel Deutschland field services unit offloaded

Ireland

52 VfIr close to converged BSS switchover
52 Partner roster
53 VfIr lands 3.6GHz spectrum but awaits Airspan play
53 Hello Airspan

UK

54 VfUK “repurposes” Cornerstone for greater flexibility, 5G
54 Agility
55 Inner city pressure
57 VfUK thinks big on MIMO, small on base stations
58 Ericsson enlisted to support 4.5G, 5G plans
58 Downsizing
58 Keeps 256-QAM and tri-carrier on
59 VfUK shutting paging arm in response to CMA deal scrutiny
60 Last telco standing
60 A message to regulators
62 Talkmobile still in reverse as more execs depart
63 Emergency Services Network warning over VfUK plans
63 Subcontractor VfUK puts an IP spanner in the works

Q4 FY16-17

65 India palm-off flatters AMAP Region figures
66 Trouble at the exchange
66 Vodacom holds the fort as VfIn merger progresses

Australia — Vodafone Hutchison Australia

67 VHA takes ACCC to court over domestic roaming
68 Vested interests
68 Different rural voices
68 Telstra and VHA trade further blows over blackspot scheme

Egypt

69 Long-awaited 4G spectrum transfer goes through
69 Slim pickings, though
70 Lots of loose ends remain

Kenya — Safaricom

71 Safaricom debuts 4G+ in urban centres

New Zealand

72 VfNZ completes Farmside buyout

Vodacom — South Africa

73 C3D billing upgrade hits contract user milestone
73 No word on prepaid base migration, though
73 Three years and counting

Index

Symbols

3rd Generation Partnership Project (3GPP) 31, 32, 33, 34

A

Accenture 39
Aditya Birla Group 66
Idea Cellular 7, 8, 10, 18, 22, 27, 65
Adobe 52
Affirmed Networks 32
Africa 9, 20, 21, 22, 23, 24, 25, 30, 32, 64, 65, 71, 72
Angola 25
– Congo 23, 25
– Egypt 10, 11, 15, 18, 30, 40, 65, 69
– Ethiopia 24
– Ghana 11, 25, 67
– Guinea 25
– Kenya 19, 20, 21, 23, 24, 25, 30, 67, 71
Capital Markets Authority (CMA, Kenya) 20
Lesotho 25
– Malawi 25
– Mozambique 25
– Namibia 25
– Nigeria 22, 24, 25
– North Africa 30
– Rwanda 25
– South Africa 9, 10, 11, 14, 19, 20, 21, 23, 24, 25, 30, 33, 40, 71, 72, 73
Public Investment Corp. Ltd (PIC) 20
Sub-Sahara 25
– Tanzania 24, 25
– Uganda 22, 25
– Zambia 22, 25
Afrimax Group 22, 25
Airspan Networks 53
Albtelecom 45
Alcatel-Lucent 52
Allot Communications 42
Altice Group
Cabovisao SA 29
Amdocs 39, 52
American Tower Corp. 18
Americas
Argentina 72
– Canada 30
– Latin America 42
– USA 11, 18, 28, 34, 35, 63
Massachusetts Institute of Technology 39
– – States
Califormia 28
– – – Florida 25
– – – Ohio 30, 47, 50
Apax Partners 27, 29
Apple 54
Argos 30
Arqiva 56
Asia-Pacific 9, 22, 25, 30, 32, 35, 37
Australia 29, 67, 68, 72
– China 31, 39, 57
– Fiji
Commerce Commission 17
Hong Kong 28, 37
– India 6, 7, 8, 10, 11, 12, 14, 15, 18, 22, 27, 29, 30, 39, 65, 66, 67
Licence Circles
Delhi 67
Japan 30, 37, 72
– Malaysia 25
– Mauritius 25
– New Zealand 10, 11, 17, 69, 70, 72
Commerce Commission (New Zealand) 17
Singapore 25, 37
– South Korea 37
– Taiwan 37
– Thailand 37
– Vietnam 37
ASSA ABLOY AB 57
AT&T 34, 35
Australian Competition and Consumer Commission (ACCC) 67, 68
Axiata Group Bhd (TM International) 39
Cambodia (TM International (Cambodia) Co. Ltd./hello) 53
– India (Idea Cellular, see also Aditya Birla) 7, 8, 10, 18, 22, 27, 65, 66
– Singapore (Mobile One, see separate) 34

B

Bharti Group 18, 39
Airtel 18, 24, 39
Bharti Infratel 18
Indus Towers 7, 8, 10, 18, 65
Botswana Telecommunications Corp. 22, 25
BT Group 39, 51, 59, 60
Openreach 59

C

CeBIT 33
China Mobile 39, 57
China Unicom 39
Cisco Systems 28
Conexus Mobile Alliance 37
CP 59
C.P.A. Czech s.r.o. 41
CU (Greece) 56

D

DaimlerChrysler
Mercedes~Benz 21
Daly International 29, 56
Deutsche Telekom 22, 30, 32, 47, 48
Europe
Czech Republic 47
– – Hungary (see Magyar Telekom) 48
– – Netherlands 11, 52
– – UK (EE) 63
Germany 47, 50
Strato 47
Investments
Magyar Telekom (see separate) 27, 48
Systems Solutions
T-Systems 30
Dixons Carphone 62
Drillisch AG 47

E

EDF
EDF Energy 60
EE (see DT, FT) 63
eircom
Meteor 53
Electricity Supply Board (Ireland) 51, 52
England and Wales Cricket Board (ECB) 21
Ericsson 28, 31, 32, 33, 34, 39, 54, 57, 58
Etisalat 27, 69
Etisalat Misr (Egypt) 69
Europe 6, 7, 8, 9, 14, 15, 18, 19, 22, 32, 33, 34, 42, 43, 44, 45, 46, 48, 53, 56, 57, 59, 65, 66
Albania 45
– Czech Republic 47, 48
Czech Telecommunications Office (CTU) 47, 48
France 12, 25, 37, 38
– Germany 10, 11, 15, 30, 32, 33, 44, 46, 47, 50, 51
Bundesnetzagentur für Elektrizität, Gas, Telekommunikation, Post und Eisenbahnen (BNetzA, RegTP, FNA, or German Federal Network Agency) 50
– – Länder
Baden- Württemberg (Stuttgart) 50
– – – Bavaria (Munich) 50
– – – Berlin 50
– – – North Rhine-Westphalia (Düsseldorf) 32, 33, 50
– – – Saxony (Dresden) 50
– – – Thuringia (Erfurt) 50
Greece 10, 11, 15, 44
– Hungary 48
– Ireland 11, 44, 51, 52, 53, 56
Commission for Communications Regulation (ComReg) 53
Italy 6, 9, 10, 11, 12, 15, 40, 42, 44, 46, 51
– Luxembourg 8, 51
– Malta 27, 28, 29
Communications Authority 28
Netherlands 6, 7, 10, 11, 15, 18, 27, 29, 32, 34, 39, 44, 52
Government 52
Portugal 10, 11, 15, 29, 44, 45, 54
– Romania 10, 11, 44
– Scandinavia 47
– Scotland 56
– Spain 10, 11, 15, 19, 30, 32, 33, 34, 44, 46, 55, 57
– Sweden 31, 57, 58
– Turkey 9, 10, 11, 15, 65
– United Kingdom (UK) 6, 9, 10, 11, 12, 15, 17, 18, 19, 25, 29, 30, 34, 38, 40, 44, 45, 46, 53, 54, 55, 57, 59, 60, 62, 63
HM Revenue & Customs 21
– – Office of Communications (Ofcom) 59
– – Transport for London 60
European Union 17, 40, 48
European Commission 48, 52
EWE
EWE Tel 50

F

Facebook 21
Far Eastern Group
Far EasTone Telecommunications Co., Ltd. 37
FireEye 30
Formula One 21
Fortinet 25
Fortino Capital 27
freenet AG (Mobilcom) 47

G

Gemalto NV 33
GLICO Healthcare 67
Globacom Ltd 22, 25
Glo Mobile 24
Globe Telecom 39
Goldman Sachs 12
Google 21
Android Market 40
GSM Association (GSMA)
Mobile World Congress 34, 35, 37, 38

H

Honda 21
Huawei Technologies 23, 29, 31, 32, 33, 37, 38, 39, 50, 57
Hutchinson Engineering Ltd 56
Hutchison Whampoa 37
Hutchison Telecommunications Hong Kong Ltd (Hutchinson Telecom/HTHKH/3 Hong Kong) 37
– Vodafone Hutchison Australia Pty Ltd (VHA, (see Vodafone) 22, 27, 29, 33, 67, 68

I

IBM 39, 57, 71
Iliad 9, 12, 46
Indus Towers 7, 8, 10, 18, 65
Infosys Technologies 39
Inseego 28
Intel 31, 33

J

Johannesburg Stock Exchange 20

K

Kabel BW GmbH & Co. KG 50
KPN 34
E-Plus 47
KT Corp. (KTC/KTF) 37

L

LG Electronics 37
Liberty Global 18, 22, 28, 46
Virgin Media 46

M

Magyar Telekom (see DT) 48
Market segments
Contactless payment (NFC) 67
– Mobile broadband 28, 48
– Mobile data 6, 28, 54, 55, 66
– Mobile virtual network (MVNA/MVNE/MVNO) 10, 47
– Network-sharing 29, 54, 55, 58, 71
– Outsourcing 51, 59, 67
– Value-added services (VAS) 47, 70
– Voice 10, 18, 34, 53, 66
Marlin Management Company
Marlin Equity Partners 23
McLaren Group 21
MediaTek Inc. 33
Microsoft 33
Middle East 9, 30
Cooperation Council for the Arab States of the Gulf (CCASG/Gulf Cooperation Council/GCC) 70
– Egypt 10, 11, 15, 18, 30, 40, 65, 66, 69
– Qatar 70
Mobile One (Singapore) 34
Mobitelea Ventures 20
Motorola Mobility Holdings Inc. 63
MTN 24, 71, 72
Nigeria 24
– South Africa 72
MYCOM 39

N

NASDAQ 23
NCR 67
NEC 30
Neotel (Pty) Ltd (SNO Telecommunications, see also Reliance) 30
Net Cologne 50
Neul 32, 33
Nokia 28, 31, 32, 33, 52
Nokia Solutions & Networks 28
Novabase SGPS SA 52
NTT 37, 39

O

Old Mutual plc 30
Olympic Games 21
Omni-Channel Management Alliance 38
Oracle 39, 73
Siebel Systems 73
Orange
Kenya (Telkom Kenya, see separate) 20
– Orange 34, 37, 38, 39, 69
– UK (see EE) 63

P

Pacific Spectrum Holdings Limited 53

Q

Qualcomm 31, 32, 33

R

RWE AG 33

S

Safaricom 6, 19, 20, 21, 22, 23, 24, 25, 30, 67, 71
Executives
Collymore, Bob 21, 30
M-PESA 19, 23, 24, 25, 67
Sainsbury, J 30
Samsung 33, 50
SAP 41, 71
Sequans Communications 33, 34
ServiceNow 25
Sigma Systems Canada 38, 39
Singapore Telecom
Optus (Australia) 29, 68
Siren Marine 27
SK Telecom 37
Sky Network Television 17
SMART Communications 37
Sony Corp. 50
Spreadtrum Communications Inc. 33
SuperGroup Holdings 30
Swisscom
Fastweb 51

T

Tangoe 23
Tata Group
Tata Communications
Neotel (see separate listing) 30
TCL Communication 28
Technology
2G 48, 55
CDMA 37, 47
3G 27, 28, 48, 55, 58
Evolved HSPA (HSPA+/I-HSPA)
MIMO 57, 58
4G 11, 27, 28, 32, 48, 53, 55, 56, 67, 68, 69, 70, 71
Long Term Evolution (LTE) 10, 31, 34, 37, 47, 50, 57, 67, 69, 71
LTE TDD 57
5G 14, 31, 34, 35, 40, 48, 53, 54, 55, 57, 58
– Billing 73
– BSS 38, 52
– Cloud computing 25, 30, 33, 40, 52, 57, 58, 71
– CRM 73
– Ethernet 40, 59
– Femtocell 10
– Fibre 14, 24, 35, 50, 51, 52, 55, 58, 71, 72
– GPS 69
– IP 63
– M2M 28, 37
– MMS 10
– Narrow Band Internet of Things (NB-IoT) 31, 32, 33, 34
– OSS 38, 52
– R&D 18, 32
– SIM 27, 33, 67
– Smartphone 28, 38, 42, 50
– SMS 10
– Spectrum 12, 47, 48, 50, 53, 55, 57, 58, 69, 70
700 MHz 48, 53
– – 800 MHz 33, 48, 50, 58
– – 900 MHz 33, 48, 69, 70
– – 1800 MHz 48, 50, 69
– – 2100 MHz 48, 58, 69, 70
– – 2600 MHz 48, 50, 57, 58
– – 3500 MHz 48, 58
Tablet 57
– TDM 63
– VPN 25
– W-LAN 54, 70
Telarix 30
Telecom Egypt 69
Telecom Italia 27, 30
Alice 62
Telefónica Group 19, 29, 30, 39, 42, 47, 50, 54, 55, 56, 58, 60
Europe 47, 48, 54, 55, 56
UK 29, 54, 55, 56, 58
TeleManagement Forum
TM Forum 37, 38, 39, 40
Telenor ASA 48
Telit 33
Telkom Kenya Ltd (Orange Kenya) 20
Telstra 68
Texas Pacific Group (TPG) 68
TIBCO Software Inc. 38
T-Systems 30
Twenty-First Century Fox
Sky
Sky Deutschland 27
Tyco International Ltd 60

U

u-blox 33
UEFA 21
Champions League 21
United Internet 30, 47
1&1 Internet 47, 50
– Versatel 47
Universal Electronics 28

V

Verizon Communications 30, 34, 35
Verizon Wireless 34
Vinaphone (Vietnam) 37
Vodacom Group 6, 9, 10, 11, 14, 15, 19, 20, 21, 22, 23, 24, 25, 30, 33, 53, 65, 66, 67, 71, 72, 73
Congo 23, 25
– Executives
Moyo, Peter 30
Gateway Communications 25
– Group 6, 10, 11, 14, 19, 20, 23, 25, 30, 53, 71, 73
– Lesotho 23, 25
– Mozambique 23, 25
– South Africa 9, 10, 11, 14, 19, 20, 21, 23, 24, 25, 30, 33, 40, 71, 72, 73
– Tanzania 23, 24, 25, 67
– Vodacom Business 24, 25, 71
Vodafone
Africa, Middle East, and Asia Pacific Region (AMAP) 7, 8, 9, 10, 14, 15, 21, 22, 30, 64, 65, 66
Africa 9, 21, 22, 23, 24, 25, 30, 32, 64, 65, 71
– – Asia 9, 22, 25, 30, 32, 35, 37
– – Australia 29, 67, 68, 72
VHA Pty. Ltd (see Hutchison Whampoa) 67, 68
Egypt 10, 11, 15, 18, 22, 25, 30, 40, 65, 66, 69, 70
– – Ghana 11, 22, 24, 25, 30, 67
– – India 6, 7, 8, 10, 11, 12, 14, 15, 18, 22, 27, 29, 30, 37, 39, 65, 66, 67
Indus Towers 7, 8, 10, 18, 65
Kenya (see Safaricom) 6, 19, 20, 21, 22, 23, 24, 25, 30, 67, 71
– – Middle East 9, 30
– – Mozambique 23, 25
– – New Zealand 10, 11, 17, 30, 33, 69, 70, 72
– – Pacific 9, 35, 37
– – Qatar (see Vodafone and Qatar Foundation and Vodafone Qatar) 22, 30, 70
– – South Africa (see Vodacom) 6, 9, 10, 11, 14, 15, 19, 20, 21, 22, 23, 24, 25, 30, 33, 40, 53, 65, 66, 67, 71, 72, 73
– – Turkey 9, 10, 11, 15, 65
Africa, Middle East, and Asia-Pacific Region (AMAP)
New Zealand
BayCity Communications (Farmside) 72
Corporate
Vodafone International Holdings BV 19
Europe Region 9, 14, 22, 43, 44, 45, 46, 48, 65
Albania 45
– – Cable & Wireless Worldwide 63
– – Czech Republic 33, 47, 48
– – Germany 9, 10, 11, 15, 30, 32, 33, 44, 46, 47, 50, 51, 55
KDG Holding GmbH (Kabel Deutschland) 9, 15, 46, 51, 55
Greece 10, 11, 15, 44
– – Hungary 48
– – Ireland 9, 11, 30, 33, 44, 48, 51, 52, 53, 56
SIRO 51, 52
Italy 6, 9, 10, 11, 12, 15, 29, 30, 40, 42, 44, 46, 51
– – Malta 6, 22, 27, 28, 29, 48
– – Netherlands 6, 7, 8, 10, 11, 15, 18, 27, 29, 32, 33, 34, 39, 44, 52
VodafoneZiggo 7, 8, 15, 22, 27, 29, 44, 52
Portugal 10, 11, 15, 29, 44, 45, 46, 52, 54
CelFocus (see Novabase) 52
Romania 10, 11, 30, 44, 48
– – Spain 9, 10, 11, 15, 19, 29, 32, 33, 34, 44, 46, 55, 57
Grupo Corporativo Ono (ONO) 15, 55
UK 6, 9, 10, 11, 12, 15, 17, 18, 19, 25, 29, 30, 34, 38, 40, 44, 45, 46, 52, 53, 54, 55, 56, 57, 58, 59, 60, 62, 63
Cornerstone Telecommunications Infrastructure Ltd 29, 54, 55, 56, 58
– – – Talkmobile 62
Executives
Ametsreiter, Hannes 50
– – Berroeta, Inaki 27
– – Borsani, Ferruccio 30
– – Coimbra, António 19
– – Colao, Vittorio 6, 12, 19, 20, 23, 35, 40, 46, 47, 52, 66
– – Della Valle, Margherita 41
– – Fernandes, Jorge 56
– – Guerion, Tony 33
– – Ibbetson, Luke 32
– – Joosub, Shameel 22, 23, 24, 71
– – Lawrence, Steve 30
– – Nelson, Amanda 27
– – Otty, John 21
– – Read, Nick 6, 14, 22, 35, 40, 41, 45, 56, 60, 62
– – Sharma, Balesh 27
– – Stanners, Russell 72
– – Streichert, Till 14, 24
– – Takkar, Ravinder 30
– – Tenorio, Santiago 34
– – Thorpe, Lori 31
– – Timuray, Serpil 6, 39, 40
– – Tournon, Emanuale 56
– – Ventura, Gianluca 21
– – Wibergh, Johan 35, 41
Ex-executives
Bamford , Peter 30
– – Dowidar, Hatem 27
– – Duesener, Mark 30
– – Evans, Mark 56
– – Fahy, Gerry 53
– – Fryer, Vernon 30
– – Halford, Andy 12
– – Jordan, Phil 30
– – Krause, Frank 30
– – Lala, Essam 30
– – Lambert, Nick 25
– – Moors, Simone 30
– – Pol, Chuck 30
– – Stevens, Francine 30
– – Whitehill, Kyle 30
Group 7, 8, 15, 19, 23, 25, 30, 33, 60
Americas (see Verizon Wireless) 30
– – Group Marketing 30
– – Headquarters 32, 57
– – Partner Markets 22, 25, 37
Africa (Afrimax) 22, 25
– – – Hong Kong (Hutchison Telecom) 37
– – – Kenya (Safaricom) 6, 19, 20, 21, 22, 23, 24, 25, 30, 67, 71
– – – Philippines (SMART) 37
– – – Singapore (StarHub) 37
– – – Taiwan (FarEasTone) 37
– – – Thailand (TrueMove) 37
Strategy
EVO 41
Vodafone Global Enterprise (VGE) 23, 25, 30
– – Vodafone Procurement Company (VPC) 15
– – Vodafone Ventures
Affirmed Networks (see separate) 32
xone 20
Investments & Associates
Americas (see Verizon Wireless) 34
Products
Europe 44
– – Healthline 255 67
– – International (UK) 19
– – Liberty (Malta) 18, 22, 28, 46
– – live! 37, 38, 39, 40
– – My Vodafone 39
– – Secure Device Manager 57
Project Spring 8
Vodafone Qatar Q.S.C. 22, 30, 70

W

WPP 21
G2 Worldwide 23

Z

Zain (MTC) 27, 30
ZTE Corp. 39, 57

About

About Vodafonewatch

Report: #156
Covering: June 2017
Published: June 2017
Next report: July 2017
For more information visit: Vodafonewatch