Vodafone

New acquisitions to be funded by disposals, says Vodafone CEO

Paul Rasmussen — Wed, 12 Nov 2008 12:43:04 -0500

While the investment community digested Vodafone's first half financial results, the new CEO, Vittorio Colao, quietly let slip he would be adopting a more cautious approach to future acquisitions than had been adopted by his predecessors.

Colao indicated Vodafone's expansion into developing countries might be nearing completion, saying there were few new markets that attracted his interest. Building on this theme, Colao said any large acquisition would probably have to be funded through disposals--a distinct reversal from the past strategy and the first time Vodafone has taken such a conservative position.

One obvious outcome from this revised strategy will be to give fresh impetus to the ongoing speculation Vodafone will sell off its Verizon Wireless shareholding, albeit that Colao made no comment on this subject. What he does want, apparently, is consolidation between mobile operators in existing markets, notably Europe, with an indication that the company was willing, for the first time, to buy rivals.

For more on this story go to:
Financial Times

Related articles:
Spain disappoints, but emerging markets boost Vodafone
Vodafone seals Vodacom deal, but faces new competition
Vodafone steps into Russia (tentatively)

Rumour mill: Is Vodafone about to issue a profits warning?

Paul Rasmussen — Tue, 04 Nov 2008 16:06:26 -0500

Taking a lead from the 33 per cent crash in Q3 profits experienced by Telenor, City of London financial analysts are now fearing Vodafone might follow suit when it reveals its half-year results next week.

Like Telenor, Vodafone has a high exposure to emerging markets--with 120 million customers--and rising inflation is severely impacting the disposable income of cellphone users in these markets. The London Stock Exchange is especially nervous of telecoms firms at present given BT's massive profits warning issued late last week.

These concerns have seemingly been generated by Vodafone contacting industry analysts to gauge their latest forecasts, which drove speculation the company was attempting to subtly forewarn the market ahead of the publication of its results. Vodafone has denied this, claiming that the calls were routine, but its shares fell seven per cent, regardless.

But, to put these worries into perspective, nearly 80 per cent of Vodafone's revenue still comes from operations in developed markets, albeit that it counts on emerging markets for almost all of its growth.

For more on this story go to:
The Times

Related articles:
Verizon pressures Vodafone to relinquish VZW stake. Verizon Wireless story
Emerging markets too pricey, says Vodafone chairman. Vodafone story
Vodafone seals Vodacom deal, but faces new competition. Vodacom story

Vodafone steps into Russia (tentatively)

Paul Rasmussen — Fri, 31 Oct 2008 13:57:18 -0400

Having seen much larger companies than itself run into trouble (most notably BP), Vodafone has decided to partner with Russia's largest cell phone operator Mobile TeleSystems (MTS) rather than make direct investments. The deal will allow MTS access to products, services and devices from Vodafone, as well as drawing on Vodafone's significant expertise on building and deploying HSPA networks.

On the upside for Vodafone is that it will gain valuable insight into the Russian and CIS markets--some of the fastest growing in the world, and make its co-branded products available to more than million MTS customers in Russia. The company has more than 40 partners of this kind around the world, particularly in Eastern Europe where products are dual-branded, and the strategy has proven successful. Vodafone said it would also open a representative office in Moscow to co-operate more closely with MTS on future offerings and customer services.

Separately, Vodafone has announced it would increase its stake in Polkomtel, the Polish mobile operator, from 19.6 per cent to 24.4 per cent to provide it with more exposure to the fast-growing Polish market.

For more on this story go to:
Cellular News and telecoms.com

Related articles:
Emerging markets too pricey, says Vodafone chairman. Vodafone story
Turkcell spends US$500M on Belarus acquisition. Turkcell story

Vodafone advertising ruled misleading

Paul Rasmussen — Wed, 29 Oct 2008 13:08:49 -0400

The UK's Advertising Standards Authority (ASA) has upheld complaints from rival mobile operators with regard to Vodafone's mobile broadband advertising. T-Mobile and 3UK claimed the Vodafone ads extolling ‘the fastest, most reliable mobile broadband in the galaxy' were misleading and the ASA agreed. Vodafone was told the advertisements should not appear again in the present form and that they must make clear the basis of their claims in the future.

For more:
- See this Mobile News article

Related articles:
U.K. advertising authority bans iPhone ad
SPOTLIGHT: T-Mobile in hot water over advertising in the U.K.

Yes Telecom, UK

paul rasmussen — Thu, 23 Oct 2008 16:31:44 -0400

Innovation: provides specific customer service for business users offering higher levels of tailoring and support than is typically available from existing MNOs.

This UK-based MVNO aims to differentiate itself in the market by providing corporate users with significantly improved levels of service. The company maintains that it is able to offer a high quality of service to its 100,000 subscribers due to the reduced challenges of running the cellular network.

With its focus on providing services of appeal to business users, Yes Telecom also works with Vodafone dealers to help them deliver higher levels of customer relationship management (CRM) -- an aspect that the majority of mobile operators continue to struggle with. Overall, Yes Telecom believes it can continue to differentiate itself by offering highly tailored solutions to corporate users reinforced by a comprehensive support package.

Mixed results for Vodafone/Visa mobile advertising trials

Paul Rasmussen — Wed, 22 Oct 2008 12:48:48 -0400

While many hopes and ambitions rest on the success of mobile advertising, cellphone subscribers remain ambivalent towards their relevance--according to results from a recent Vodafone and Visa Europe trial.

The trial, which took place in May, involved sending some 150,000 messages to Vodafone subscribers in eight countries. The text message reminded travellers about the necessity to use a country code when dialling home, along with a promotion to win tickets to the Beijing Olympics with Visa if they used their credit card abroad.

Of those receiving messages, 86 per cent remembered the welcome message promotion and 74 per cent opened and read the message. However, only half of those receiving the advertising message declared an interest in receiving more and only if they were relevant and targeted.

Whilst MNOs such as Vodafone carry on pushing further into mobile advertising, several major advertising agencies continue to express the significant disconnect between their wish to involve the mobile channel as part of an overall campaign and the technological hurdles involved.

For more on this story:
- go to Mobile News

Related articles:
UK operators cooperate over mobile advertising metrics. Mobile ad story
Mobile advertising needs to up its game. Editorial

Vodafone and O2 back German m-payments service

Paul Rasmussen — Fri, 17 Oct 2008 12:25:33 -0400

Further dipping their toes into the m-payments arena, Vodafone and O2 are set to launch a new service in Germany to provide over 70 million bank and mobile phone subscribers with access to secure online shopping on their handsets or PC.

The new service, branded mpass, can be tied to a user's debit account enabling them to make online purchases by entering their mobile number and PIN. Before the purchase is cleared, users will receive a follow up SMS requesting confirmation. Promoters of the technology claim it is more secure as users have no need to enter bank account or debit/credit card information when making online purchases.

Lutz Schüler, GM of marketing & sales for O2 Germany, said, "Effective immediately and without the need to register, the system offers about 14 million contract customers of Vodafone and O2 the possibility to pay online in an easy, rapid and secure manner--at home and on the go."

Perhaps more importantly, the new mpass payment system will be supported by a number of online retailers at launch, including CinemaxX, Blume2000.de, EuroFuchs, Kickz and Beate Uhse.

For more on this story:
- go to the Cellular News

Related articles:
Subscribers would switch carriers for m-payments. Report
O2 calls upon rivals to help NFC m-payments succeed. O2 story

Vodafone seals Vodacom deal, but faces new competition

Paul Rasmussen — Fri, 10 Oct 2008 10:47:12 -0400

After months of speculation Vodafone has acquired control of the South African-based Vodacom for US$2.48 billion. The investment gives Vodafone control of South Africa's biggest mobile operator, together with a vital foothold in booming African markets and signals its intent to keep pace with its rival Orange where France Telecom's emerging markets play is concentrated.

If the deal goes ahead, which would see Vodafone owning 65 per cent of operations in South Africa, Democratic Republic of Congo, Lesotho, Mozambique and Tanzania, the company could face increased competition from its former parent, Telkom South Africa.

Up until now Telkom's shareholder agreement limited its ability to offer mobile services. However, this could now change with a new shareholder dispensation enabling Telkom to target the rapidly expanding market for broadband and mobile data services.

Commenting on the acquisition, John Delaney, research director at IDC, said that the investment was an indication that Vodafone's new CEO, Vittorio Colao, was evidently intent on maintaining the momentum in Vodafone's drive to spread the red rectangle around the globe.

For more on this story:
- go to telecoms.com

Related articles:
Vodafone in bidding war for South African Telkom. Vodafone story
Emerging markets too pricey, says Vodafone chairman. Vodafone story

Vodafone gets RIM Storm exclusive--hopes for iPhone-killer

Paul Rasmussen — Wed, 08 Oct 2008 13:10:20 -0400

After months of speculation, RIM has launched its Blackberry Storm handset which will be offered exclusively next month by Vodafone and Verizon Wireless. What is hoped, particularly by Vodafone, is that this new touchscreen cellphone will provide the company with something to fight back against the runaway success of the iPhone.

According to Vodafone's global director of terminals, Jens Schulte-Bockum, he had met with RIM co-CEO, Mike Lazaridis, last summer and implored him to develop a breakthrough device that would help Vodafone to reposition RIM from a pure enterprise tool into the consumer space, "to the heart of the consumer space".

Early reports of the Storm handset would indicate that RIM's touchscreen device might have stolen a march over the iPhone by providing easier and more precise typing. Unlike the iPhone, the Storm has a ‘clickable' touchscreen, which apparently responds much more like a physical keyboard.

Tim Renowden, a research analyst at Ovum, commented that it was clear RIM was attempting to make its Storm handset more attractive to consumers, as well as enterprises. "It will be interesting to see how well the touchscreen works in practice," said Renowden. He also pointed to RIM's partnership deals with Facebook, MySpace and other consumer-focused applications such as instant messaging, as evidence that RIM is seeking to broaden its appeal to consumers.

Vodafone has failed to detail pricing for the Storm, although insiders strongly believe that the device will be free with two-year contracts.

For more on this story:
- go to Mac World and Silicon.com

Related articles:
RIM downgraded because of Bold delays. RIM story
Verizon's launch of Blackberry Storm delayed until November. Verizon story

Revamped SFR targets Orange France

Paul Rasmussen — Wed, 01 Oct 2008 11:50:53 -0400

Having completed its €4.4 billion merger with fixed-line operator Neuf Cegetel, SFR is now targeting Orange France in enterprise services and content. The merger, which will see the disappearance of Neuf Cegetel as a brand, will boost the new company's expected revenue to €12 billion for 2008 and provide it with the size and clout to take on Orange.

According to Frank Esser, CEO of SFR, the company will now have around a 12 per cent share of the fixed enterprise market, and 36 per cent of the mobile enterprise spend, leaving plenty of potential for growth. "We are a real challenger to France Telecom."

SFR also plans to attack Orange's content business, and Esser was critical of Orange's investment in exclusive football rights and other content. "Our strategy is very different to that of Orange, which is starting to pay too much for content," said Esser, stating that Orange's recent €300 million spend on football rights in France amounted to "€30 per year per Orange customer. It's better to leave content to partners," Esser contended.

Esser also commented that he did not expect any change in the short term to SFR's shareholding. The company is presently 56 per cent owned by Vivendi and 44 per cent owned by Vodafone.

For more on this story:
- go to Total Telecom

Related articles:
Vodafone supports SFR's acquisition of cable operator. SFR story
Operators delay femtocell deployments. SFR story