Vodafone Group Plc Annual Report for the year ended 31 March 2012

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Vodafone Group Plc Annual Report 2012 Strategy 22 Focusing on growth in: Mobile data services Our goal is to become the provider of choice for customers wanting to use data services. The opportunity is huge as we believe that over time all customers will want to use data internet services on their mobile devices. The mobile industry started less than 30 years ago with a single service – making and receiving calls. Today our customers enjoy a range of services including simple voice calls, text and picture messaging, and data services such as mobile internet browsing, social networking sites, downloading applications (‘apps’) and sending emails via smartphones. Market context: According to industry analysts, data is expected to be the fastest growing segment of the mobile industry. It is estimated that between the 2011 and 2016 calendar years worldwide mobile data revenue is set to grow by US$142 billion, compared to a US$27 billion decline in voice revenue over the same period. 1 Goals: We aim to have the best mobile network in all of the markets in which we operate, supported by leading IT systems. This means giving our customers far-reaching coverage, a very reliable connection and increasing speeds and data capacity. Strengths: We have more than 238,000 base station sites transmitting wireless signals – making us one of the largest mobile operators in the world. Actions: We are investing around £6 billion a year to deliver a high quality mobile data experience for our customers. Progress: In 2012 nearly one trillion minutes of calls were carried and more than 216 petabytes of data were sent across our networks – in other words enough data for 2.8 trillion emails. The demand for mobile data services is growing rapidly Data is already our fastest growing segment, with data revenue up by 22.2% * over the financial year, compared to a 4.4% * rise for messaging revenue and a 4.0% * fall for voice revenue. This demand is being driven by three key factors – a widening range of powerful and attractive smartphones and tablets, significant improvements in mobile network quality and capability, and an increased choice of user friendly and useful applications for business and social use. Data revenue growth* % 2010 2011 2012 +19.3 +22.2 +26.4 We have already seen significant growth in the number of customers using smartphones, with 27% of customers in Europe using these devices today, compared to 19% last year, and this is expected to grow rapidly in the next few years. Data users Millions 2010 52 2011 2012 34% of our customers use data. 81 108 We are growing data revenue through enhancing technology and improving the customer experience We are continuing to refocus our business on data to capture the significant expected growth in customer demand for data services. We aim to deliver a market-leading network experience to our customers. To compare our performance against our major competitors we conduct regular benchmark tests using reputable third parties. The latest results show that we have leading data service performance in 13 out of 18 markets with data downlink speeds on average around 6% better than our next best competitor. Typical user data speeds 2012 Downlink Uplink 1.4 Vodafone Next best competitor 1.8 More on how we’re driving data through technology and customer experience Pages 24 and 25 Note: 1 Sourced from Strategy Analytics. Mbps 5.3 5.6
Vodafone Group Plc Annual Report 2012 23 Business review Enhancing the UK network Over the last 18 months we have been upgrading our network in the UK, and particularly London, to cope with the expected extra demand from the 2012 summer Olympic Games and to deliver a much enhanced smartphone data experience. We have reconfigured our 3G network to run on 900 MHz frequency spectrum instead of 2100 MHz, which enables the radio signal to travel longer distances and provides better indoor coverage. We’ve also increased the number of base station sites in the UK over the last year by around 1,300, bringing the total to more than 14,600 nationally, which will boost capacity by around a third. Customers will see major benefits with improved coverage and accessibility to the network together with faster data speeds. In order to deliver on the growth opportunity in mobile data we are focused on improving the user data experience through two key areas – technology and customer experience. You can read about these in more detail on the following pages… Performance Governance Financials Additional information
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Vodafone Group Plc Annual Report for the year ended 31 March 2012

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