Vodafonewatch Report #85 Executive Brief September/October 2010
3 November 2010
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Executive Brief from Vodafonewatch, report #86. Click through for: an Extract from this month’s report; the Report Snapshot; or to contact us for more information about the full 58-page report, this industry standard monthly report service, and ongoing subscription access.
- GROUP: Merger and acquisition (M&A) activity speculation continues apace, particularly around the Group’s minority investments following their recent shift to central management. However, signs also began to emerge of incoming activity at OpCo level, with reports that a new Group head of Acquisitions has been appointed, and rumours suggesting Vodafone UK may be interested in retailer Phones4U and/or wireline player TalkTalk. [pp.5,6,15.]
- Outside the Group’s footprint, meanwhile, it was suggested that Vodafone is among several international operators interested in forming Iraq’s fourth mobile player, in partnership with the local incumbent telco. [p.16.]
- Vodafone continues efforts to revive the fortunes of web services platform Vodafone 360, and to get a firmer handle on data strategy, with news of Internet Services Director, Pieter Knook’s departure, and reports that the Group may team with European rivals Deutsche Telekom, France Télécom, and Telefónica to develop a common mobile operating system. Group Chief Executive Vittorio Colao also used a speech at Nokia World to seek support for operator control over the mobile web services ecosystem, with arch disrupter Google the obvious target. [pp.14,15,17,18.]
- Vodafone Global Enterprise appears to be accelerating international expansion with the opening of a new regional office in Singapore, with signs emerging of activity by the multinational corporate unit in the Group’s biggest blind spot of Latin America. Vodafone is also to open a new Innovation Centre in California, USA, to tap into Silicon Valley activity and build local technology partnerships, marking one of the first public signs of impact from new Group R&D head Siavash Alamouti’s reign. [pp.16,17,22.]
- David Erixon, Global Director, Brand Strategy & Manifestation, became the latest in a string of senior departures from the Vodafone’s now downsized and subjugated Global Marketing unit. The marketing trade is protesting that the reorganisation has left the big spending department weakened, and without independence, although whether this is a bad outcome remains to be seen. [pp.4,15.]
- Recruitment activity among suppliers’ account teams continues apace, with: Ericsson bringing in a new head for its Vodafone Global Customer Unit; and Avaya and Cisco seeking to staff up to aid enterprise activity with the Group. [pp.19,20.]
- Outsourcing remains very high on the agenda for Group OpCos, both in mature and emerging markets, with: Vodafone Germany and Vodafone Ghana outsourcing network maintenance and tower management work, respectively. There is also continued talk of expanding infrastructure sharing with Bharti Airtel, both in Africa and India, and rumours of an IT services deal coming up for grabs from Vodafone Hutchison Australia. [pp.8,16,26,39,42-44.]
- EUROPE: Vodafone could face a fight to keep part of its spectrum portfolio in Greece, following comments by the national telecoms regulator that 900MHz airwaves may be re auctioned when they expire in 2012. The frequencies form one of a number of Vodafone’s 2G concessions that are coming up for renewal across Europe. The company also had unwelcome news regarding spectrum resources in the UK, with the failure of an appeal to enable 3G delivery over its existing 900MHz frequencies. [pp.27,36.]
- Vodafone Italy advanced fixed broadband strategy, seeking with next generation network partners to turn the heat up on incumbent Telecom Italia, by pulling out of a committee set up to discuss their rival plans for fibre rollout. It follows Vodafone Germany and Vodafone Spain in committing to use HSPA infrastructure for rural broadband expansion; and is reported to be preparing, along with the Spanish OpCo, to enter the pay TV space. [pp.28,33.]
- Vodafone Netherlands became the first Group OpCo to set out a date for rollout of near field communications based mobile payments, although the service is not expected to go live until 2012, and will be operated by a consortium including banks and rival mobile operators. This echoes other recent initiatives seeing industry players seeking to join forces to breathe commercial life into mobile NFC. [p.31.]
- AFRICA, MIDDLE EAST, AND ASIA PACIFIC: A Vodafone led consortium is reported to have gained one of two ‘triple play’ licences in Egypt, expanding its existing fixed broadband and telephony interests in the country. Details on the concessions’ terms are yet to emerge, but will be of interest following an apparent underwhelming response to the licences from other companies. Vodafone has yet to reveal its level of participation, with previous reports suggesting it would be restricted for competition reasons. [p.41.]
- India’s Supreme Court agreed to hear the latest round in Vodafone’s protracted capital gains tax battle with local authorities, as the Group seeks to reverse recent setbacks. [p.44.]
- Vodafone New Zealand received a boost from the government in relation to digital switchover planning, with a decision being made to sell valuable low frequency spectrum by end 2013, rather than later as originally planned. [p.48.]
- Safaricom and Vodacom continue to build parallel (and perhaps ultimately clashing) expansion plans in enterprise and data services, with the former announcing a managed service tie up with local provider Quintica; and the latter adding a new data centre to provide hosted services domestically. Safaricom formed a new in house unit to advance M&A, while Vodacom said it remains on the lookout for takeover opportunities in sub Saharan Africa. Vodacom also launched its version of Safaricom’s high profile M PESA remittance offering in South Africa, and set a three year uptake target that just tops its sister OpCo. [pp.45,46,51,52.]
- Safaricom extended value added service ties with Nokia through the launch of the vendor’s Nokia Messaging push email and instant messaging proposition. [p.47.]
About Vodafonewatch
Report: #86
Covering: September/October 2010
Published: October 2010
Next report: November 2010
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