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Mobile Telecommunications - Assignment Example

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Summary
Vodafone is the largest mobile telecommunications network company in the world having equity networks in 25 countries and Partner Networks in additional 36 countries with an approximate 198.6 million customers worldwide as at December 31, 2006. The company has a total employee strength of 60,000, which grew at a rate of 4.6% for the year 2006.
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Mobile Telecommunications
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Mobile Telecommunications

Download file to see previous pages... As of March 1999, the Group had subsidiary mobile network operating companies in six countries - the UK, the Netherlands, Greece, Malta, Australia and New Zealand. Between 1999 and 2003, the Group furthered its transaction activities thereby transforming the company into the world's leading international mobile telecommunications company (Vodafone Annual Report, 2006).
Vodafone Group provides a wide range of voice and data mobile telecommunications services, including text messages (SMS), picture messages (MMS), and other data services. The Group is continually expanding its product line and enhancing its service offerings, particularly through third generation (3G) mobile technology.
In the wake of fierce competition and narrowing margins, Vodafone is continuously innovating to keep pace with the changing environment. Besides competition, the list of drivers changing the environment also comprises challenging regulatory environment, and continuous development in technology which means there is far more choice for customers. Historically, growth in Vodafone's portfolio has come from developed markets, particularly Europe. Due to high penetration rates (100%) in such markets, Vodafone is now concentrating on emerging markets which poses greater potential for growth due to low penetration rates (average 30%).
2. Strategic Analysis
Vodafone has a strategy of expanding business through acquisitions, partnerships and joint ventures in the telecommunication industry. The Group cleanses its portfolio by disposing off underperforming assets that have an impact on its resources. Vodafone has invested only in those geographical regions where it has seen chances of superior returns for its shareholders.
Key developments in the history of the Group are as follows:

Timeline of Vodafone Group
1999 - Vodafone merged with Air Touch Communications which changed its name to Vodafone Air Touch. The Group had mobile operating subsidiaries in 10 countries and equity interests in an additional 12 countries.
2000 - Vodafone set its footprint in Germany and Italy through acquiring Mannesmann AG. Vodafone also increased its indirect holding in SFR, a French mobile telecommunications operator. Moreover, the Group's US mobile operations combined with Bell Atlantic and GTE Corporation to form Verizon Wireless.
2001 - Vodafone acquired Eircell Limited, a mobile operator in Ireland and set its footprint there. Moreover, the Group acquired 66.7% stake in a fixed line operator in Japan, Japan Telecom Co. Ltd.

Since March 2003, Vodafone has undertaken multiple subsidiary acquisitions in Egypt, Greece, Hungary, Japan, Malta, Portugal, Sweden, Netherlands, and UK. Vodafone has had joint ventures in India, Fiji, Kenya, Poland and South Africa.

Vodafone Group faces a high degree of competition in each of its geographic markets. It is subject to both indirect competition, from providers of other telecommunications services in the domestic markets and, direct competition from existing mobile telecommunications network operators. Many of Vodafone's key markets are highly penetrated due to a large number of customers having more than one subscriber identity module (SIM), the basis of customer identity for a mobile telecommun ...Download file to see next pagesRead More
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