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The World's Largest Mobile Community
Vodafone Group Plc is the world's leading mobile telecommunications company, providing a wide range of services including voice and data communications.
Vodafone Group Plc provides an extensive range of mobile telecommunications services, including voice and data communications, and is the world's largest mobile telecommunications company, with a significant presence in Continental Europe, the United Kingdom, the United States and the Far East through the Company's subsidiary undertakings, associated undertakings and investments.
The Group's mobile subsidiaries operate under the brand name 'Vodafone'. In the United States the Group's associated undertaking operates as Verizon Wireless. 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.
At 31 December 2005, based on the registered customers of mobile telecommunications ventures in which it had ownership interests at that date, the Group had 179.3 million customers, excluding paging customers, calculated on a proportionate basis in accordance with the Company's percentage interest in these ventures.
The Company's ordinary shares are listed on the London Stock Exchange and the Company's American Depositary Shares ('ADSs') are listed on the New York Stock Exchange. The Company had a total market capitalisation of approximately £80 billion at 15 November 2005.
The history of Vodafone
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.
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.
A more comprehensive history of Vodafone
Key milestones in the development of Vodafone can be found in the following sections, organised by decade in descending order:
History - 2000s
2003
A group wide Partner Network Agreement is signed with mobilkom austria group to introduce Vodafone's global services into Austria, Croatia and Slovenia.
An audit of the first year of sponsorship of Scuderia Ferrari reveals that the sponsorship has outperformed all of the annual targets set internally by Vodafone and helped establish exceptional global brand awareness.
At the 2003 GSM Association Awards Ceremony in Cannes, France, Vodafone is awarded 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! In addition, Vodafone's premium handset for Vodafone live!, the Sharp GX10, wins the Best Wireless Handset Award for the Sharp Corporation. Vodafone live! attracts 1 million customers in its first six months.
Orange, Telefonica Moviles, T-Mobile, and Vodafone form a new association to drive interoperable mobile payments.
SAP AG, HP and Vodafone announce a letter of intent to work together to bring to market a suite of mobile capabilities designed to increase the workforce productivity of large enterprises initially in Europe, the Middle East, and Africa.
Vodafone increases shareholding in Telecel to 70.3%
In April, Vodafone announces it is to increase its shareholding in Vodafone Libertel to 98.2%
A Partner Network Agreement is signed with Islandssimi hf (formerly the merged companies Islandssimi and Tal) to introduce Vodafone's global mobile services into Iceland.
In the Preliminary Announcement of Results for the year ended 31 March 2003, Vodafone announces continued excellent operating performance with strong revenue, profit and free cash flow growth.
In June, Vodafone announces the sale of stakes in Mexican and Indian operators.
Two new central functions are created: Group Marketing and Group Technology & Business Integration. The structure and management of the Group's regional operations also change.
Acclaim and Vodafone sign exclusive mobile games deal.
In July, Vodafone extends its mobile community to Lithuania through a Partner Network Agreement with Bite GSM.
Luc Vandevelde is appointed to the Board as a non-executive director with effect from 1 September 2003.
Vodafone acquires the remaining 20% of Vodafone Malta Limited.
Verizon Wireless and Vodafone co-operate on lap top e-mail, Internet and corporate applications access for the US and Europe.
2002
Vodafone begins the year trialling its global mobile payment system in the UK, Italy and Germany. The trial enables customers to purchase physical and digital goods using their mobile phone.
In January, Panafon Vodafone migrates to the single Vodafone brand.
Vodafone signs Ericsson as a global Multimedia Messaging Supplier (MMS). MMS is an evolution of SMS, allowing customers to send and receive messages using text, pictures, audio and video.
Vodafone signs a Vodafone Partner Agreement with Oy Radiolinja Ab, the leading private mobile operator in Finland.
Vodafone signs Siemens as a global location enabling server supplier. The platform allows Vodafone to create location-enabled applications.
Vodafone and T-Mobile International AG create an interoperable mobile payment platform.
In March Vodafone launches 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.
In June the Vodafone Group Foundation is launched. In 2002, the Group and its subsidiaries plan to contribute £20 million to community programmes, guided by the Group Social Investment Policy.
In July Vodafone launches the world's first pre-paid top up for international travellers. This allows Vodafone customers to top up their pre-paid mobiles when abroad.
In August Vodafone acquires Vivendi's 50% stake in Vizzavi. Vodafone now owns 100% of Vizzavi.
Vodafone signs a partner agreement with MTC, the leading mobile operator in Kuwait.
Eurocall Platinum launches in September, a new Eurocall option offering greater value to high volume roaming customers.
Vodafone agrees to acquire BT's 26% and SBC's 15% Cegetel interests.
At a presentation on 24 October, Vodafone announces the launch of Vodafone live!, a new consumer proposition, and Mobile Office, a new business proposition. The new services lay the foundations for the next stage in Vodafone's strategic development.
In its Interim Results Announcement Vodafone announces excellent first half operating performance with expectations exceeded on key growth indicators and £2.9 billion free cash flow generated.
On 19 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.
Vodafone announces that with effect from 1 January 2003, Brian Clark is appointed Chief Executive of Vodafone's new Asia Pacific Region.
Vodafone signs global agreements with the leading computer equipment suppliers Dell, Fujitsu-Siemens, Hewlett Packard, IBM, Psion Teklogix and Toshiba to offer business customers an extensive range of 'Connected by Vodafone' mobile computing devices such as notebooks, PDAs and Tablet PCs with easy connection to Vodafone's GPRS data network.
The partnership network agreement with Radiolinja Eesti AS is extended into Estonia.
Dr John Buchanan is appointed to the Board as a non-executive director with effect from 1 April 2003.
On 18 December, Vodafone announces that Arun Sarin has been selected to succeed Sir Christopher Gent as Chief Executive of Vodafone Group Plc immediately following the Annual General Meeting on 30 July 2003.
2001
The year is marked by further growth in the proportionate customer base. More than 4.4 million customers are gained during the first quarter of the year and 5 million customers are added through increases in Vodafone's stake in companies worldwide. At the end of March the number of Vodafone customers worldwide was 82.9 million proportionately.
Vodafone acquires 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.
In June, Vodafone Group Plc ("Vodafone") announces further growth in its worldwide proportionate registered customer base during the quarter ended June 2001. Overall, more than 3 million proportionate registered customers were gained during the quarter together with 7.1 million proportionate registered customers which have been added through stake increases in existing ventures and through new acquisitions. Vodafone's worldwide total proportionate base is now over 93.1 million registered customers. The venture base is now over 202.6 million registered customers.
Vodafone acquires British Telecommunication Plc's 17.8% shareholding in Airtel Movil S.A., increasing its shareholding to 91.6%.
Vodafone introduces instant messaging to its networks, a faster and more efficient way to communicate using text messages via SMS or WAP.
Vodafone launches its first global communications campaign at the beginning of August. The campaign features TV, cinema, print, online and outdoor media, each version asking the question, “How are you?”.
Telecel Vodafone and Airtel Vodafone migrate to a single Vodafone brand.
At the end of September, interim results show statutory turnover increasing by 27% to £8,906 million, statutory operating profit (before goodwill and amortisation) increasing by 40% to £3,392 million and the venture customer base increasing by 15% to 210.1 million proportionate registered customers (increases since 31 March 2001).
In November Vodafone opens its China office in Beijing and Hong Kong. The opening coincides with China's entry into the World Trade Organisation.
Vodafone announces its 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.
Vodafone closes the year by making the word's first 3G roaming call (between Spain and Japan).
2000
The year begins with the Group in discussions to acquire Mannesmann AG (these discussions had started in November 1999). On 4 February 2000, 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.
In June, agreement is reached for France Telecom to acquire Orange which was purchased as a part of the Mannesmann Group.
In May 2000, Vizzavi is launched, a 50/50 joint venture between Vodafone AirTouch and VivendiNet, to deliver a multi-access branded Internet portal for Europe.
The enlarged Group is the largest mobile telecommunications company in the world and one of the top ten companies, by market capitalization, in the world.
The European region is the largest of the Vodafone Group and reports more than 4.38 million net new connections in the second quarter of the calendar year and a customer base of over 32.28 million. In the European region, Vodafone has telecommunications interests in 14 countries and represents 54% of the Group's worldwide base.
At the end of June, in the Americas and Asia Pacific region, Vodafone has a customer base of more than 16.25 million, having added more than 1.46 million net new customers during the second calendar quarter. Vodafone has telecommunications interests in 7 countries in the region.
Verizon Wireless is launched in May 2000, the combination of Vodafone AirTouch's and Bell Atlantic's US cellular, PCS and paging assets. Further businesses contribute to the joint venture following the merger between Bell Atlantic Corp. and GTE Corp. As a result Verizon Wireless ranks as the market leader in the US wireless industry, serving more than 23 million customers and covering 96 of the top 100 US markets. The Group has a 45% interest in Verizon Wireless.
The newly formed UK, Middle East, Africa region, which manages the Group's interests in 4 countries, adds over 770,000 net new customers. The regional customer base at the end of June 2000 is more than 10.77 million. In April 2000, Vodafone in the UK acquires the largest available 3G licence. In parallel with the development of 3G, Vodafone in the UK is testing and rolling out GPRS (General Packet Radio Service), expected to be in commercial service in the last quarter of the year ending March 2001.
History - 1990s
1999
Vodafone AirTouch is created: an engine for growth in the 21st Century. Vodafone AirTouch Plc, the largest mobile communications company in the world, is created as a result of the successful merger between Vodafone Group Plc of the UK and AirTouch Communications Inc. of the US on 30 June 1999. Prior to the merger in June 1999, Vodafone and AirTouch were already leaders in the development and provision of mobile communications services in their respective home markets.
As at the end of November 1999, the company has a market capitalization of approximately £90 billion, and on this basis is the second largest company in the FTSE 100, and third in the Euro Top 300. The company is one of the top 25 companies in the world.
At the end of September 1999, Vodafone AirTouch Plc has over 31 million cellular customers worldwide, and interests in 24 countries across five continents.
On 21 September 1999, Bell Atlantic Corp. and Vodafone AirTouch Plc announce a definitive agreement to create a new wireless business with a national footprint - a single brand and a common digital technology, composed of Bell Atlantic's and Vodafone AirTouch's US wireless assets. The merger between Vodafone and AirTouch prompts a thorough review of internal communications and career opportunities, underpinned by the, "Commitment to being the world's leading wireless communications company, providing more customers with more services and more value from their mobile terminals than any other."
Significant milestones:
15 January - Vodafone connects the five millionth customer in the UK.
1 March - Number of worldwide Vodafone Group customers passes ten million.
21 April - Pay As You Talk passes two million customers.
16 September - Vodafone Interactive, internet-based services, launches.
1998
The Millennium Share Options Scheme is announced. The scheme means all UK employees receive share options to the value of half their basic salary, as at 1 July 1998.
Sir Gerald Whent CBE (Chief Executive, Vodafone Group) and Sir Ernest Harrison OBE (Chairman, Vodafone Group) retire from the company at the Annual General Meeting. Lord MacLaurin, former Chairman of Tesco succeeds as Chairman of the Vodafone Group.
Misrfone consortium, of which Vodafone has a 30% interest, is awarded the licence to build a second mobile network in Egypt.
The New Zealand GSM network is purchased.
1997
1 January 1997 Chris Gent succeeds Sir Gerald Whent as Chief Executive Officer.
Vodafone is re-organized radically, particularly its distribution. The then six wholly owned Service Providers are reduced to three - Vodafone Corporate, Vodafone Retail and Vodafone Connect. As a result, the numbers of billing and customer care systems are rationalized, and brands, retail interiors and tariffs streamlined.
As a new Vodafone corporate identity is unveiled, Vodafone's 100th roaming agreement is announced.
Vodafone's "Pay As You Talk" digital package is launched, offering no bills, no credit check, no fixed term contract and advanced digital services.
An agreement is struck to offer fixed line services from Energis, alongside existing mobile telephony services.
Plans are announced to seek a site for a new headquarters, just outside of Newbury in the UK.
1996
Vodafone is the first network operator in the UK to launch a Pre-Pay analogue package that requires no contract and no credit check.
Per second billing on the digital network is introduced, as well as options to enable customers to purchase "bundled" minutes and make off-peak local calls to fixed line phones.
1995
Over 500 specialist retail outlets and seven High Street chains connect mobile phones to the Vodafone network. These included Comet, the John Lewis partnership, AA stores, The Link, Pinnacle Vodafone shops, Talkland and Pocket Phone stores.
International links continue to develop throughout the year, with interest in network consortia in the Netherlands, Hong Kong, Germany and France.
Vodafone becomes the first network in the world to introduce TACS Authentication measures, to combat cloning fraud on the analogue network.
1994
Vodata becomes the first network operator in the UK to launch data, fax and SMS (Short Message Service) services over the digital network.
Vodafone joins the Globalstar consortium to develop and launch a Low Earth Orbiting Satellite mobile phone service. This allows customers with dual GSM and Satellite handsets to use either the existing land-based GSM base station or, if out of coverage, the satellite system to make a call.
1993
Vodafone opens its first High Street Vodafone Centre, and announces its first distribution agreement with a major UK High Street retailer, Comet.
International partnerships are formed with consortia in Germany, South Africa, Australia, Fiji and Greece. As a result, Vodafone Group International is formed to acquire licenses and supervise overseas interests.
1992
Vodafone and Telecom Finland sign the world's first international GSM roaming agreement.
The Vodafone Group Profit Share Scheme is launched to enable all UK employees to participate in the company's success.
New tariff initiatives for the consumer market are introduced. LowCall, a low user tariff, offers a reduction of 40% on the existing Business tariff.
Vodafone buys the remaining 50% of Paknet from Cable & Wireless, and brings Paknet into the Group as a wholly-owned subsidiary.
1991
A British Standard Award for Quality is awarded to Vodafone. This is the first such award to be given to any telecommunications company in the UK.
In September, Racal and Vodafone de-merge fully. The Vodafone Group, as an independent company, is listed on the London and New York Stock Exchanges. At the time, this is the largest de-merger in UK corporate history.
Vodafone and Telecom Finland make the world's first international roaming call.
Vodafone's digital (GSM) mobile phone service is launched - the first in the UK.
1990
Paknet, the radio data network company, launches a commercial service to meet the requirements of businesses for fast, reliable and accurate sending of Packet data in fixed and mobile applications.
History - 1980s
1989
Network coverage and capacity continue to increase. A back-up network is introduced to minimize the effect of any faults occurring.
Paknet is formed as a joint venture between Racal Telecom and Cable & Wireless.
1988
Racal Telecomms Division demonstrates its success and profitability by accounting for a third of Racal's profits for the year.
20% of the ordinary share capital of Racal Telecomms Division is floated on the London and New York Stock Exchanges at 170p.
1987
Gerald Whent commits Vodafone to aggressively develop mobile telephony internationally in the long-term, by entering consortia formed to bid for licenses, and by rigorously identifying opportunities for acquisition.
The growth of the company consistently outstrips the projections of the original business plan. Vodafone is recognized as the largest mobile network in the world.
Vodata is created as the "voice and data" business to develop and market Vodafone Recall, the voicemail service. Other value-added services are added, such as the first information lines Financial Times CityLine and AA Roadwatch.
Vodapage is launched, providing a paging network that covers 80% of the UK population.
1982 - 1986
As Chairman of the Racal Radio Group in 1982, Gerald Whent has the vision and fortitude to convince the Racal Electronics Group Board that it should bid for the private sector UK cellular licence being offered by the UK government. He masterminds the successful bid, and sets up the Racal Telecomms Division to develop and implement the analogue (or TACS) network. Based in Newbury, the company has less than 50 employees, all based in one building.
Vodafone is chosen as the name of the network, to reflect the provision of voice and data services over mobile phones.
The Vodafone analogue network is launched on 1 January 1985, the first call being made from St Katherine's Dock in London to Newbury. It is the first cellular network to launch in the UK. After the launch, the network is rolled out rapidly, achieving the license population coverage requirement within the time specified.
The network is prohibited by license from selling direct to the public, so Vodac, the Group's wholly owned subsidiary, is formed in 1984 to be the Service Provider for the network.
Customers at 31 December 1985: 19,000
Vodafone UK Facts
| Customer numbers: |
In the UK, at 30 September 2004, Vodafone has 14.6 million customers
- 60% are pre-pay
- 40% are contract
- 2.4 million customers are connected to Vodafone live!
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| Number of phones: |
49.9 m people in the UK own a mobile phone |
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| Text messages: |
20 million text messages are sent on the Vodafone UK network every day |
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| Roaming: |
Vodafone offers its customers roaming on 408 networks in 174 countries around the world |
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| Coverage: |
- 2G: 99% of the UK population
- 3G: 60% of the UK population
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| Employees: |
Vodafone employs around 10,000 people in the UK |
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Unless otherwise stated, all information is correct at 29 November 2004
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