Vodafone

This article is part of the Center for Media & Democracy's spotlight on global corporations.

Vodafone Group Pic

Type	Mobile Telecommunications Company
Founded	1984 as Racal Electronics Plc, became Vodafone Group Pic in 1991
Headquarters	Berkshire, England, UK
Number of locations	Europe, the Middle East, Africa, Asia Pacific and the United States
Key people	Vittorio Colao, CEO Sir John Bond, Chairman John Buchanan, Deputy Chairman
Products	Cellular phones,telecommunications, integrated mobile and PC communication services.
Revenue	▲ £35,478 million GBP (2008
Net income	▲ £10,047 million GBP (2008)
Employees	Approximately 72,000 during year ended 30 June 2008
Website	http://www.vodafone.com/hub_page.html

Vodafone is a global telecommunications operator an provider headquartered in Berkshire, England, UK. It is the world's leading mobile telecommunications company, with over 269 million registered customers, and an estimated total market capitalisation of approximately 79 billion pounds as of June, 2008. It is currently present in 25 countries, and has undertaken various assiociations, parterships, and joint industrial/investment ventures in 42 other countries.

Company History

Vodafone was formed in 1984 as a subsidiary of Racal Electronics Plc. Then known as Racal Telecom Limited, approximately 20% of the company's capital was offered to the public in October 1988. It was fully demerged from Racal Electronics Plc and became an independent company in September 1991, at which time it changed its name to Vodafone Group Plc.(the name comes from the expression "VOice DAta Phone").

Following its merger with AirTouch Communications, Inc. (‘AirTouch’), the company changed its name to Vodafone AirTouch Plc on 29 June 1999 and, following approval by the shareholders in General Meeting, reverted to its former name, Vodafone Group Plc, on 28 July 2000.

The following list includes Vodafone's most important corporate highlights over the past 8 years:

2008

Vodafone acquires a 70% stake in Ghana Telecom for $900 million (July)

Vodafone lauches the M-Paisa mobile money transfer service on Afghanistan's Roshan. Afghanistan is added to the Vodafone footprint. (February)

2007

A consortium led by Vodafone Group is awarded the second mobile phone licence in Qatar. (December)

Vodafone agrees to acquire Tele2 Italia SpA and Tele2 Telecommunication Services SLU from Tele2 AB Group. (October)

Vodafone announces completion of the acquisition of Hutch Essar from Hutchison Telecommunications International Limited. (May)

Safaricom, Vodafone’s partner in Kenya announces the launch of M-PESA, an innovative new mobile payment solution that enables customers to complete simple financial transactions by mobile phone. (February)

Vodafone agrees to buy a controlling interest in Hutchison Essar Limited, a leading operator in the fast growing Indian mobile market, (February)

Vodafone announces agreements with both Microsoft and Yahoo! to bring seamless Instant Messaging (IM) services to the mobile which can be accessed from both the PC and mobile handsets. (February)

Vodafone signs a series of ground-breaking agreements which will lead to the mobilising of the internet. YouTube agrees to offer Vodafone customers specially rendered YouTube pages on their mobile phones. With Google, Vodafone announces its intention to develop a location-based version of Google Maps for. With eBay, Vodafone announces it is to offer the new eBay mobile service to customers, With MySpace.com Vodafone announces an exclusive partnership to offer Vodafone customers a MySpace experience via their mobile phones. (February).

Vodafone reaches 200 million customers (January)

2006

Sale of 25% stake in Switzerland's Swisscom (December)

Sale of 25% stake in Belgium's Proximus. (August)

The number of Vodafone live! customers with 3G reached 10 million in March 2006.

We acquired Telsim Mobil Telekomunikasyon Hizmetleri (Turkey) in May 2006.

Launch of mobile TV capability and Vodafone Radio DJ, which offers a personalised, interactive radio service streamed to 3G phones and PCs.

3G broadband through HSDPA launched offering faster than 3G speeds.

Japan business sold to SoftBank.

‘Make the most of now’ global marketing campaign launched.

Sir John Bond succeeds Lord MacLaurin as Chairman.

2005

Completed acquisition of MobiFon S.A. (Romania) and Oskar Mobile a.c. (Czech Republic) (May).

Launch of Vodafone Simply, a new easy-to-use service for customers who want to use voice and text services with minimum complexity (May).

Introduction of Vodafone Passport, a voice roaming price plan that provides customers with greater price clarity when using mobile voice services abroad (May).

2004

Launches its first 3G service in Europe with Vodafone Mobile Connect 3G/GPRS data card.

14 Partner Networks with new agreements in Cyprus, Hong Kong and Luxembourg. Vodafone live! with 3G launched in 13 markets (November).

2003

At the GSM Association Awards Ceremony in Cannes, France, Vodafone won the mobile industry's most prestigious awards in two categories, Best Consumer Wireless Application or Service and Best Television or Broadcast Commercial for its global consumer service, Vodafone live!

Vodafone live! attracts 1 million customers in its first six months.

Verizon Wireless and Vodafone co-operate on laptop e-mail, internet and corporate applications access for the US and Europe.

Arun Sarin succeeds Sir Christopher Gent as Chief Executive.

2002

First trial of a global mobile payment system in the UK, Italy and Germany. The trial enables customers to purchase physical and digital goods using their mobile phone.

Launching of the first commercial European GPRS roaming service. Customers are able to seamlessly access services such as corporate e-mail, intranet and personalised information on their mobile phones, laptops or PDAs over GPRS.

The Vodafone Group Foundation is launched, with plans to contribute £20 million to community programmes, guided by the Group Social Investment Policy.

In October: launch of Vodafone live!, a new consumer proposition, and Mobile Office, a new business proposition. In November, Vodafone Remote Access is launched as part of Mobile Office. The service gives business customers an easy way to connect to their corporate LAN to access e-mail, calendar and other business specific applications whilst on the move.

2001

Acquisition of Ireland's leading mobile communications company, Eircell.

Vodafone and China Mobile (Hong Kong) ltd (CHMK) sign a 'strategic alliance agreement'.

The Group completes the acquisition of a 25% stake in Swisscom Mobile.

Introduction of instant messaging to its networks, a faster and more efficient way to communicate using text messages via SMS or WAP.

First global communications campaign launched in August. The campaign features TV, cinema, print, online and outdoor media, each version asking the question, 'How are you?'.

First Vodafone Partner Agreement with TDC Mobil A/S, Denmark's leading mobile operator. The agreement is the first of its kind in the mobile industry and means Vodafone and TDC Mobil will cooperate in developing, marketing and advertising international roaming products and services to international travellers and corporate customers.

We make the word's first 3G roaming call (between Spain and Japan).

2000

On 4 February, terms are agreed with the Supervisory Board of Mannesmann by which Mannesmann would become a part of the Vodafone community. The transaction almost doubles the size of the Vodafone Group.

The agreement to acquire Mannesmann AG receives European Commission clearance on 12 April 2000.

Verizon Wireless is launched in May, the combination of Vodafone AirTouch's and Bell Atlantic's US cellular, PCS and paging assets.

Original source:

Historical Financial Information

Monetary data is presented in £m

Summary Consolidated Income Statement for the year 2007.

Revenue: 31,104

Cost of sales: 18,725

Gross profit: 12,379

Selling and distribution expenses: (2,136)

Administrative expenses: (3,437)

Share of result in associated undertakings: 2,728

Impairment losses: (11,600)

Other income and expense: 502

Operating loss: (1,564)

Investment income: 789

Financing costs: (1,612)

Loss before taxation: (2,383)

Income tax expense: (2,423)

Loss for the financial year from continuing operations: (4,806)

Loss from discontinued operations: (491)

Loss for the financial year: (5,297)

For a more comprehensive and specific study of the Group's financial reports: 'Annual Review and Summary Financial Statement 2007

Business Strategy

The Group's mobile subsidiaries operate under the brand name 'Vodafone'. In the United States the Group's associated undertaking operates as Verizon Wireless (second largest wireless telecommunications company in the United States). During the last two financial years, the Group has also entered into arrangements with network operators in countries where the Group does not hold an equity stake. Under the terms of these Partner Network Agreements, the Group and its partner networks co-operate in the development and marketing of global services under dual brand logos.[1]

The Group has ownership interests in 27 countries across 5 continents. In addition, it has Partner Markets in a further 40 countries.

For a complete and interactive footprint of the Group's world-wide presence and strategical business undertakings through affiliates, subsidiaries and partner markets, PLEASE VIEW:

Corporate Accountability

According to its website and its own Code of Ethics , Vodafone is committed to establishing clear labor, human rights, and environmental policies that personify the Group's ultimate goal of complying with international obligations, as well as the internal legislation of each of the countries in which it operates, particularly in the three fields previously cited.

"Vodafone's commitment to human rights is embodied in our Business Principles. We respect and comply with all human rights legislation, regulations and standards in the countries where we operate. We welcome the work of the UN Special Representative on Business and Human Rights to help business build its understanding of human rights and explore the ways it can contribute.

We recognise the rights of our employees to freely choose to join trade unions or similar external representative organisations. Where representation by trade unions is conferred automatically by legislation, these rights will be upheld. Local operating companies will respect the wishes of the majority of their employees in deciding whether to recognise a trade union to negotiate terms and conditions of employment, where legislation permits. We seek to work in a constructive partnership with recognised trade unions in the best interests of employees, shareholders and customers.

Vodafone does not tolerate child labour, forced or compulsory labour. Our employment policies also cover a range of related issues including health and safety, and equal opportunities and diversity."

Anti-Trust and Tax Practices

GERMANY: Germany's Top Banker Faces Retrial

Associated Press December 21st, 2005

"A federal court ordered a retrial for Deutsche Bank CEO Josef Ackermann and five others on Wednesday over large payments to executives during Vodafone PLC's 2000 takeover of rival mobile phone company Mannesmann AG.

Deutsche Bank's supervisory board expressed its unrestricted trust in Ackermann even as Germany's biggest bank faces the disruption of its top manager in court again. The company said it regrets the ruling.

In July 2004, the Duesseldorf court found the six defendants not guilty of charges that they illegally engineered payments to executives at Mannesmann after its takeover by Vodafone. The 180 billion euro deal was the largest corporate merger ever at the time."

Business Scope

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Financial Information (as of DATE)

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Largest Shareholders

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Governance

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