Wednesday, February 25, 2009

reliance communications

Reliance Communications (formerly Reliance Infocomm), along with Reliance Telecom and Flag Telecom, is part of Reliance Communications Ventures (RCoVL). It is an Indian telecommunications company. According to National Stock Exchange data, Anil Dhirubhai Ambani controls 66.77 per cent of the company, which accounts for more than 1.36 billion shares.[3] It is the flagship company of the Reliance-Anil Dhirubhai Ambani Group, comprising of power (Reliance Energy), financial services (Reliance Capital) and telecom initiatives of the Reliance ADAG. It uses CDMA2000 1x technology.

RelCom is also into Wireline Business throughout India and has the largest OFC backbone architecture [roughly 110,000 km] in the country. The company also has licenses in the GSM telecom services space for most of the Telecom Circles (zones in layman's words). It currently operates in 8 circles and plans to launch in the others soon.

Reliance Communications has interests in Direct To Home (DTH) TV also, known as "Big TV". It plans to launch its DTH business by July 2008. Once launched, RelCom will have presence across all B2C communications channel in one of the fastest growing markets in the world.


Bid For Hutch

In 2007, Reliance Communications had bid for 67% of Hutch but lost to Vodafone, which had been led by its CEO at the time Mr.NITIN GUPTA.

Acquisitions

In July 2007, the company announced it is buying US-based managed ethernet and application delivery services company Yipes Enterprise Services for a cash amount of Rs. 1200 crore rupees (equivalent of USD 300 million). The deal was announced complete in a press release in December 2007.

In its first overseas acquisition, the Reliance group has amalgamated the United States-based Flag Telecom for $ 211 million [roughly Rs 950 crore (Rs 9.50 billion)].


recent News

On the 19th December 2008,one of the flag telecom cables in the mediterranean sea was damaged.Flag Telecom is now part of Reliance Globalcom.

Controversy[original research?]

Anil Dhirubhai Ambani's (ADA) Reliance Communications [Get Quote] own Swan Telecom at the time Swan applied for a GSM mobile phone licence. Reliance Communications or other Reliance ADA Group firms owned more than 10 per cent of Swan Telecom when the latter applied for a (GSM-based) mobile telephone licence in March 2007, this was against the law which said no shareholder can hold more than 10 per cent of the equity in two telecom firms in the same licence area - Reliance Communications already operates a CDMA-mobile phone service.

In which case, Swan's licence - Swan is one of the firms which got a licence at bargain-basement prices. The state-owned BSNL entered into a roaming agreement with Swan - BSNL does not have such an arrangement with any private telecom firm, so why did it sign up with a firm which doesn't even have one subscriber? Since this means Swan can offer mobile phone services across the country without having much of its own network, the deal is a winner for it; it offers little to BSNL since Swan's subscribers will be minuscule for a long time to come. The company's explanation for the events is so beyond the realm of normal expectations, it can only be classified as a Black Swan event, to use Nassim Taleb's classification - an event so rare, it happens once in a millennium. In March last year, when Swan applied for a GSM mobile licence, Reliance Telecom (a Reliance ADA subsidiary) owned 9.9 per cent of it - this was permissible within the law. The rest was owned by Tiger Traders. The problem, however, was that Tiger's directors were Reliance ADA Group employees and their address was also that of a Reliance ADA Group firm. Also, Reliance Communications' annual report showed the firm had, in 2007, given Swan Rs 992 crore by way of 99.2 lakh 8 per cent redeemable preference shares with a coupon value of one rupee - that is, Reliance subscribed to these at a premium of Rs 999 each. In other words, everything about Swan smelt Reliance Communications at this point in time. Reliance ADA, for the record, has a different explanation for things, an explanation that is also quite worrying. According to Reliance ADA, a very large group of builders (Dynamix Balwas own the Meridien Hotel in Mumbai and the Hyatt in Goa) approached it to say there was a possibility of getting a telecom licence; but since the builders had no telecom experience, it was decided Reliance ADA employees would be directors of Swan, the firm chosen to apply for the spectrum. According to Reliance ADA, since it was in the telecom business and felt it could do business with Swan if it got a licence (Swan could, for instance, rent out its telecom towers), it didn't mind doing this. Presumably, this is also why it put in Rs 992 crore (Rs 9.92 billion) with Swan. According to Reliance ADA, redeemable preference shares are not equity but are debt - so it never owned more than 9.9 per cent of Swan's share at any point in time. (In India, by the way, redeemable preference shares are considered as equity, though under the International Financial Reporting Standards they are considered as debt.) Reliance ADA adds that its directors stepped down from Swan on October 10 - that is, long before Swan got its licence in January 2008 and a few days before Raja took his decision to award Reliance Communications' GSM spectrum under the dual-technology umbrella on October 18, 2007. Talk about timing! Swan also returned Reliance Communications' money before it got the licence. This explanation of Reliance ADA's dealings, of course, is what the telecom ministry has to examine. It is, of course, curious that the ADA Group should be willing to put so much money into a firm that had little to offer by way of collateral. And since the 8 per cent return Swan was offering by way of interest on the preference shares could only be on the Re 1 coupon value (Reliance Communications paid Rs 1,000 for each share), in effect, it virtually gave the money to Swan for free. And, when the Reliance ADA directors stepped down and Swan gave it its money back, Reliance Communications didn't get any premium either.

tata indicom

Introduction

Tata Teleservices Limited (TTSL) is a part of the Tata Group of companies, an Indian conglomerate. It runs under the brand name Tata Indicom in India, in various telecom circles of India. The company forms part of the Tata Group's presence in the Telecommunication Industry in India, along with Tata Teleservices (Maharashtra) Limited (TTML) and TATA COMMUNICATIONS LTD.

In February this year, TTSL announced that it would provide CDMA mobile services targeted towards the youth, in a joint venture with Virgin, UK,on a Franchisee model basis.

Company background

Tata Teleservices is part of the INR Rs. 2,51,543 Crore (US$ 62.5 billion) Tata Group, that has over 87 companies, over 330,000 employees and more than 2.8 million shareholders. With a committed investment of INR 36,000 Crore (USD $7.5 billion) in Telecom (FY 2006), the Group has a formidable presence across the telecom value chain.

Tata Teleservices spearheads the Group’s presence in the telecom sector. Incorporated in 1996, Tata Teleservices was the first to launch CDMA mobile services in India with the Andhra Pradesh circle.

Starting with the major acquisition of Hughes Telecom (India) Limited [now renamed Tata Teleservices (Maharashtra) Limited] in December 2002, the company swung into an expansion mode. With a total Investment of Rs 19,924 Crore, Tata Teleservices has created a Pan India presence spread across 20 circles that includes Andhra Pradesh, Chennai, Gujarat, J & K, Karnataka, Delhi, Maharashtra, Mumbai, North East, Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala, Kolkata, Madhya Pradesh and West Bengal.

Having pioneered the CDMA 3G1x technology platform in India, Tata Teleservices has established a robust and reliable 3G ready telecom infrastructure that ensures quality in its services. It has partnered with Motorola, Ericsson, Lucent and ECI Telecom for the deployment of a reliable, technologically advanced network.

The company, which heralded convergence technologies in the Indian telecom sector, is today the market leader in the fixed wireless telephony market with a total customer base of over 3.8 million.

Tata Teleservices’ bouquet of telephony services includes Mobile services, Wireless Desktop Phones, Public Booth Telephony and Wireline services. Other services include value added services like voice portal, roaming, post-paid Internet services, 3-way conferencing, group calling, Wi-Fi Internet, USB Modem, data cards, calling card services and enterprise services. Some of the other products launched by the company include prepaid wireless desktop phones, public phone booths, new mobile handsets and new voice & data services such as BREW games, Voice Portal, picture messaging, polyphonic ring tones, interactive applications like news, cricket, astrology, etc.

Tata Indicom redefined the existing prepaid mobile market in India, by unveiling their offering – Tata Indicom "Non Stop Mobile" which allows customers to receive free incoming calls. Tata Teleservices today has India’s largest branded telecom retail chain and is the first service provider in the country to offer an online channel www.ichoose.in to offer postpaid mobile connections in the country.

Today, Tata Teleservices Limited along with Tata Teleservices (Maharashtra) Limited serves over 28 million customers in over 5,000 towns. With an ambitious rollout plan both within existing circles and across new circles, Tata Teleservices offers world-class technology and user-friendly services in 20 circles.

Tata Teleservices has also acquired GSM licenses for specific circles in India.

Senior Management

The Board of Directors for TTSL includes Tata Sons Chairman Mr. Ratan N. Tata, while the company is currently headed by its Managing Director, Mr. Anil Kumar Sardana.

Market Data

Tata Indicom in March 2008, crossed the 24 million subscribers mark in the wireless category with an overall subscriber base of over 25 million.

It has a current subscriber base of 24.3 million and a 9.33% cumulative market share. Tata Indicom continues to register the highest CAGR at 113% in the wireless segment with a net base of 12.8 million against a starting base of 11.8 million.

(All figures based on March 2008. Figures Available on AUSPI website)

Tata Teleservices also gained the No. 2 slot in terms of Market Share in Delhi NCR region with a subscriber base of 3 million. It beat Vodafone to the No. 2 spot and positioned itself just behind Airtel in the circle.

Network

Tata Teleservices operates primarily on the CDMA network. CDMA offers a robust and technologically superior path & ecosystem. CDMA has an edge over GSM as it allows more communication to be carried with the same infrastructure and also brings costs down. Tata Indicom’s enterprise solutions work on the CDMA 3G-1X technology that offers superior voice clarity and congestion-free networks. Many existing GSM 2G (GSM/GPRS) operators are slowly beginning to switch to WCDMA technology. 25 GSM operators worldwide have deployed CDMA2000 to deliver 3G value added services.

The total tower strength of Tata Indicom is currently at 12,500 towers nationwide, which includes 10,000 for TTSL and 2,500 for TTML.

Business Areas

Tata Teleservices has always come up with path breaking plans in both the Post-paid and Pre-Paid category. TTSL has also taken a lead in pioneering the VAS (Value Added Segment) in India. The Enterprise segment is another important business vertical for the company.

Branding

Tata Indicom as a brand stands out amongst other Telecom brands in India due to the trustworthiness and dynamic nature of the Tata trademark, as well as the consumer connect it has created over the years. The Tata Indicom brand is endorsed by bollywood actresses Kajol and Trisha, cricketers Irfan Pathan and Saurav Ganguly, who embody the Tata Indicom philosophy and add to its ability to connect with the consumer.

Tata Indicom has over the years managed to set itself apart as a telecom brand for India’s masses through its advertising, branding, retail and marcomm initiatives. Tata Indicom’s TV commercial for the Freedom Call Voucher won many laurels and was highly successful in creating brand recall amongst the consumers. The advertisement featured a girl, sitting in a locker room and chatting with her friend with a stop watch in one hand because she was worried that the talk time would run out. The Tata Indicom brand ambassador, Kajol, then moves into the scene and introduces this girl to Tata Indicom’s freedom call offer that ensures free unlimited talk time on the Tata Indicom network.

According to a survey conducted by global market research agency Synovate, Tata Indicom, the retail brand of Tata Teleservices Limited, was positioned as numero-uno by television viewers in major Indian metropolitan cities in September 2007.


Tata Teleservices strongly believes that the next wave of growth in the telecom industry will be driven by addressing the various segments of the market through innovation in marketing, branding and distribution strategy. In line with this strategy, Tata Teleservices has recently launched the Virgin Mobile Brand to target the youth segment. Going forward, Tata Teleservices will introduce more segmented brands/products for niche markets in India.

Rural Telephony

Tata Indicom has made consistent efforts to provide superior and affordable products and services through its Rural Telephony Unit. Mobile vans are flagged off in various parts of the country which serve as real visibility and customer touch points to experience the brand and the various services it offers.

TTSL has an efficient distribution network across villages , where in people are appointed and trained by TTSL – who visit villages on a bicycle or a two-wheeler at defined times on defined days of the week, selling recharge vouchers and servicing equipment; each runner covers between 200 to 300 customers.

The company joined hands with Tata Chemicals, Tata Kisaan Sansar network, disseminating information through these centres and using them as local distributors.MT ROYAL (HARYANA)

Retail

The company currently operates its retail business nationally through 3,000 plus outlets comprising of 600 TTSL owned stores and more than 2,500 stores in the Franchisee format. Tata Indicom already covers the top 700 towns in India in terms of population through Tata Indicom Exclusive Stores. Most towns with a population of 50,000 and above within the 20 circles of TTSL’s operation already have the presence of a Tata Indicom Exclusive outlet.

This is the largest branded retail presence amongst all telecom operators in the country and in fact, makes Tata Indicom the largest retailer in India in terms of number of stores under one brand name.

Tata Indicom has also launched an online portal for its customers i-choose where the customers can conveniently buy Tata Indicom post-paid connections and prepaid recharge vouchers at the click of a mouse with an upfront commitment of activation and delivery of the handset within 72 hours. Accessible from over 400 cities across India, http://www.ichoose.com has been conceptualized to enable the customers to make an educated and well-researched choice from a wide range of Tata Indicom handsets, tariff plans and value added services

The two retail formats earlier existed as True Value Hubs and True Value Shops, primarily depending on the kind of products and level of customer service provided. Over a period of time, the small format TVSs’ were upgraded to undertake a larger extent of varied customer services like bill payments, customer service requests, etc. As a result, apart from the size of the store, there is little difference between the stores in terms of services that they can deliver to customers. Thus, both formats were brought under one umbrella of the Tata Indicom Exclusive Stores. MT ROYAL(HARYANA)

Value Added Services

Tata Teleservices, in October 2007, unveiled a full-blown Tata Zone, the popular infotainment space on Tata Indicom BREW-enabled mobile phones, in Hindi. This unique service comes loaded with exciting applications, pricing details, downloads and browsing instructions in Hindi.

The rationale behind this was simple: - 66% of all Indians speak Hindi, while less than 5% understand English. Tata Teleservices, the country’s fastest growing telecom service provider today, recognizes this fact and is therefore, increasingly embracing Hindi to drive the adoption of data services among the non-English speaking population.

Under its VAS bouquet, TTSL offers varied services such as News, Games,Faith and Prayers, Ringtones, Fun Shows, Video Zone, Song Download Express, Cricket, Internet Surfing, Astrology, Mobile Office, Remo Mail and other such services.

In March 2008, Tata Indicom also launched a first of its kind service known as i-HELP services, a free of charge service which enables subscribers to contact their near and dear ones in times of an emergency via one simple SMS.

Tata Indicom will also soon provide m-commerce, mobile advertising, mobile TV and social networking under its VAS offerings.

Corporate Social Responsibility

Tata Teleservices has taken its innovative drive to various CSR initiatives. Some of them are listed below :

Farm 2 Fork Initiative
Project Dhrishti
M-Education Services
Fishermen Project

virgin mobile

Virgin Mobile is a brand used by many mobile phone service providers based in the United Kingdom, and operating in India, Australia, Canada, South Africa, the United States and France; the brand survived only briefly in Singapore. The international Virgin Mobile businesses each act as independent entities, usually in a partnership between Sir Richard Branson's Virgin Group and an existing phone company. Virgin Group provides the brand, and the phone company operates the network infrastructure.

Virgin Mobile was the world's first Mobile Virtual Network Operator when it launched in the United Kingdom in 1999.[1] It does not maintain its own network but instead contracts to use the existing network(s) of other providers.


Global network

In the UK, Virgin Mobile uses the T-Mobile network.[2] In the USA, the Sprint Nextel is the networker.[3] There is no roaming to other networks in the United States. In Australia, Virgin Mobile operates on the Optus network.[4] In Canada, it uses the Bell Mobility network.[5] In France, it uses Orange SA.[6] Virgin Mobile South Africa uses the Cell C network for coverage across South Africa.[7] In India, it uses the network of Tata Indicom. These networks use two different mobile telephony standards, GSM and CDMA. GSM is used in the UK, South Africa, Australia and France. CDMA is used in the US, India and Canada. (GSM is available in India via other service providers).

In all countries, Virgin Mobile offers prepaid pay-as-you-go service. In the UK, US, Canada, Australia and South Africa, Virgin Mobile also offers a post-paid option to approved customers. Already very common in the UK at the time of Virgin Mobile's launch, prepaid wireless service was a very small part of the US wireless market. Nevertheless, competitive pricing, and a "no-frills" approach ensured a small but significant market share.

Virgin Canada

Virgin Mobile Canada experienced substantial growth in the past year, launching approximately 60 "Virgin Mini Stores" across the country. Virgin Mini Stores (VMS) are kiosks usually located in shopping malls that especially target the 18-35 yr. old demographic.

For four years running, Virgin Mobile Canada has received J.D. Power and Associates' annual award for "Highest Customer Satisfaction for Prepaid Wireless."

Post-paid plans were introduced to Virgin Canada in February 2008.

Virgin Singapore

Virgin Singapore was launched in October 2001 as a joint venture with Singtel. The operations were closed down by October 2002 after failing to attract a significant number of customers. [8]

Failure of the joint venture was attributed to a saturated mobile market and Virgin Mobile's positioning as a "premium" brand. [9]

Virgin India

On 2008-03-01, Virgin launched the Mobile brand in India through a franchise arrangement with Tata Teleservices.[10] This is Virgin’s seventh launch globally and its largest investment to date in India, said Branson, noting that the Indian market was very attractive, growing like none other in the world.[10]. The Cellular Operators' Association of India (COAI) had opposed the tie-up, alleging that it amounted to Virgin's entry into India as a Mobile Virtual Network Operator (MVNO) which is currently not allowed in India, due to prevalent regulations.[11]. However on 2008-03-29, the Department of Telecom (DoT) cleared the deal after clarification from Tata Teleservices indicated that Virgin had not entered India as an MVNO.[12]

Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation Limited) is a public sector telecommunication company in India. It is India's largest telecommunication company with 24% market share as on March 31, 2008. Its headquarters are at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi. It has the status of Mini Ratna, a status assigned to reputed public sector companies in India.

BSNL is India's oldest and largest Communication Service Provider (CSP). Currently has a customer base of 90 million as of June 2008.[1] It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi which are managed by MTNL. As on March 31, 2008 BSNL commanded a customer base of 31.55 million Wireline, 4.58 million CDMA-WLL and 54.21 million GSM Mobile subscribers. BSNL's earnings for the Financial Year ending March 31, 2007 stood at INR 397.15b (US$ 9.67 b) with net profit of INR 78.06b (US$ 1.90 billion). Today, BSNL is India's largest telco and one of the largest public sector undertakings with estimated market value of $ 100 Billion. The company is planning an IPO with in 6 months to offload 10% to public in the Rs 300-400 range valuing the company at over $100 billion.



references

BSNL Mobile
Prepaid Mobile
BSNL Broadband


BSNL provides almost every telecom service in India. Following are the main telecom services provided by BSNL:

  • Universal Telecom Sevices : Fixed wireline services & Wireless in Local loop (WLL) using CDMA Technology called bfone and Tarang respectively. BSNL is dominant operator in fixed line. As of December 31, 2007, BSNL has 81% marketshare of fixed lines.
  • Cellular Mobile Telephone Services: BSNL is major provider of Cellular Mobile Telephone services using GSM platform under the brand name CellOne[2]. Prepaid cellular services of BSNL are know as Excel. As of March 31, 2007 BSNL has 17% share of mobile telephony in the country.
  • Internet: BSNL provides internet services through dial-up connection (Sancharnet) as Prepaid, (NetOne) as Postpaid and ADSL broadband (DataOne). BSNL has around 50% market share in broadband in India. BSNL has planned aggressive rollout in broadband for current financial year.
  • Intelligent Network (IN): BSNL provides IN services like televoting, toll free calling, premium calling etc.

Administrative units

BSNL is divided into a number of administrative units, termed as telecom circles, metro districts, project circles and specialized units, as mentioned below:

Training Institutions

1. Advanced Level Telecom Training Centre(ALTTC), Ghaziabad
2. Bharat Ratna Bhim Rao Ambedkar Institute Of Telecom Training, Jabalpur
3. National Academy of Telecom Finance and Management, Hyderabad
4. Telecom Factory, Kolkata
5. RTTC Ahmedabad
6. RTTC Trivandrum
7. RTTC Jaipur
8. RTTC Pune
9. RTTC BHUBANESHWAR
10. RTTC CHENNAI
11. RTTC GUWAHATI
12. RTTC HYDERABAD
13. RTTC LUCKNOW
14. RTTC MYSORE
15. RTTC NAGPUR
16. RTTC RAJPURA


Other Units

1. Telecom Stores
2. Telecom Electrical Wing
3. Telecom Civil Wing
4. T & D Circle

Present and future

Since its corporatization in October 2000, BSNL has been actively providing connections in both urban and rural areas and the efficiency of the company has drastically improved from the days when one had to wait for years to get a phone connection to now when one can get a connection in even hours. Pre-activated Mobile connections are available at many places across India. BSNL has also unveiled very cost-effective broadband internet access plans (DataOne) targeted at homes and small businesses. At present BSNL enjoy's around 60% of market share of ISP services.[3]

Year of Broadband 2007

2007 has been declared as "Year of Broadband" in India and BSNL is in the process of providing 5 million Broadband connectivity by the end of 2007. BSNL has upgraded existing Dataone (Broadband) connections for a speed of up to 2 Mbit/s without any extra cost. This 2 Mbit/s broadband service is being provided by BSNL at a cost of just US$ 11.7 per month (as of 21/07/2008 and at a limit of 2.5GB monthly limit with 0200-0800 hrs as no charge period). Further, BSNL is rolling out new broadband services such as triple play.
BSNL is planning to increase its customer base to 108 million customers by 2010. With the frantic activity in the communication sector in India, the target appears achievable.
BSNL is a pioneer of rural telephony in India. BSNL has recently bagged 80% of US$ 580 m (INR 2,500 crores) Rural Telephony project of Government of India.[4]

Challenges

During the financial year 2006-2007 (from April 1, 2006 to March 31, 2007) BSNL has added 9.6 million new customers in various telephone services taking its customer base to 64.8 million. BSNL's nearest competitor Bharti Airtel is standing at a customer base of 39 million. However, despite impressive growth shown by BSNL in recent times, the Fixed line customer base of BSNL is declining. In order to woo back its fixed-line customers BSNL has brought down long distance calling rate under OneIndia plan, however, the success of the scheme is not known. However, BSNL faces bleak fiscal 2006-2007 as users flee, which has been accepted by the CMD BSNL.[5]

Presently there is an intense competition in Indian Telecom sector and various Telcos are rolling out attractive schemes and are providing good customer services.

Access Deficit Charges (ADC, a levy being paid by the private operators to BSNL for provide service in non-lucrative areas especially rural areas) has been slashed by 37% by TRAI, w.e.f. April 1, 2007.[6] The reduction in ADC may hit the bottomlines of BSNL.

airtel

Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is India's largest and world's third largest cellular service provider with more than 82 million subscribers as of December 2008.[1] It also offers fixed line services and broadband services. It offers its TELECOM services under the Airtel brand and is headed by Sunil Mittal. The company also provides telephone services and Internet access over DSL in 14 circles. The company complements its mobile, broadband & telephone services with national and international long distance services. The company also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. The company provides end-to-end data and enterprise services to the corporate customers through its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station. SingTel owns over 30% of the Bharti Telecom. Vodafone is also a shareholder of Airtel with 4% of the shares. Thus making it a sister company of the brand.[2]


Brands

Airtel

Bharti Airtel India’s largest integrated and the first private telecom services provider in all the 23 telecom circles. With its world class products and services, Bharti Airtel since its inception, has been at the forefront of technology and has steered the course of the telecom sector in the country. The businesses at Bharti Airtel are structured into three strategic business units (SBU’s) - Mobile Services, Telemedia Services & Enterprise Services. The Mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles, Telemedia Services business offers broadband & telephone services in 94 cities. The Enterprise services provide end-to-end telecom solution to corporate customers and additionally provides national & international long distance services to carriers. We have recently forayed into Media Business by launching our DTH Services in October 2008. All these services are rendered under a unified brand “Airtel”.

Bharti Airtel serves over 82mn customers as of October 31, 2008; of whom 80,199,747 subscribe to GSM services and 2,549,043 use Telemedia Services either for voice and/or broadband access delivered through DSL. They are the largest wireless service provider in the country, based on the number of subscribers as of October 31, 2008. Bharti Airtel has a dominant position in the GSM services with a market share of 34.5 % as of September 2008.[3]

The company also deploys, owns and manages passive infrastructure pertaining to telecom operations under its subsidiary Bharti Infratel Limited. Bharti Infratel owns 42% of Indus Towers Limited. This has been incorporated with an objective to provide “Shared Telecom Infrastructure” to telecom operators across the world on a nondiscriminatory basis. It’s commitment towards continuous innovation will enable optimization of future tower rollout and enhance operational efficiencies and result in substantial cost savings for its customers.

The strategy of de-coupling infrastructure and backend processes from the core sales and marketing function was a strategy pioneered by Airtel and then implemented by a number of other companies.

Airtel Sri Lanka

In December 2008, Bharti Airtel rolled out third generation services in Sri Lanka in association with Singtel. This is because Asia's telecommunications major SingTel, is a major player in the 3G space as it has already third generation networks in several markets across Asia. It had been largely criticised in recent times on its inability to start operation even two years after its certification and proposed date of launch. [4]

Airtel's operation in Sri Lanka, known as Airtel Lanka, commenced operations on the 12th of January 2009. Their offer of a free SIM card with ever connection from Jan 12-25 led to long queues outside Airtel’s office at Narahenpita, Colombo. Airtel announced the following tariff features at the launch: Same tariffs for peak and off-peak hours, Unconditional free incoming calls, Uniform call charges to any network and 50% lower charges on roaming in India. [5]

Touchtel

Until September 18, 2004, Bharti provided fixed-line telephony and broadband services under the Touchtel brand. Bharti now provides all telecom services including fixed-line services under a common brand "Airtel"

BlackBerry

On 19 October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in India. The launch is a result of a tie-up between Bharti Tele-Ventures Limited and Research In Motion (RIM)..

Digital TV

Main article: Airtel Digital Tv

On 9 October 2008, Airtel joined the DTH bandwagon in India with Airtel Digital TV, a Direct-to-Home Television service.

iPhone 3G

As of 22 August 2008, the Apple iPhone 3G is available in India on Airtel and Vodafone.

Awards and recognition

Bharti Airtel has received recognition for its innovative practices across the world, some are as follows:

  • 3rd Largest Wireless Operator In The World
  • Largest Private Integrated Telecom Company In India
  • Largest Wireless Operator In India
  • Largest Private Fixed Line Operator In India
  • Largest Telecom Company Listed On Indian Stock Exchanges
  • Sunil Bharti Mittal, - Gsm Association Chairman’s Award 2008
  • Sunil Bharti Mittal, - Chosen For Padma Bhushan Awards In 2007
  • Airtel Was Chosen As The 2nd Most Trusted Service Brand In India In The ‘Most Trusted Brands 2008 Survey’ Conducted By The Economic Times - Brand Equity
  • Awarded With Top Honors At The Gsma Mobile World Congress Conference 2008 In Barcelona For The Category “Best Billing/ Customer Care Solution.”
  • Adjudged As The ‘Best Carrier India‘ At The Telecom Asia Award 2008
  • Gallup Great Workplace Award For 2008
  • Ranked 2nd In The Survey Of India’s Most Respected Companies By Businessworld 2007
  • Adjudged As ‘Company Of The Year’ At The Cnbc India Business Leader Awards 2007
  • Economic Times ‘Company Of The Year 2007’ Award For Corporate Excellence
  • Gallup Great Workplace Award For 2008 -Airtel is one of the only 20 companies worldwide and the only company from India to receive the prestigious award. The other winners include companies like Standard Chartered, Qwest Communications and Campbell Soup Company etc. Airtel is one of the only 20 companies worldwide and the only company from India where Organization engagement score is higher in more than 50% of the population. Tom Rath from Gallup mentions "Studying more than 10 million employees worldwide allowed us to set an extraordinarily high bar for this award. The winners have gone far beyond just offering nice perks and benefits. They have created an environment that truly engages people every day, throughout the organization."

In the news

On February 12, 2007 Vodafone sold its 5.6% stake in AirTel back to AirTel for US $1.6 billion; and purchased a controlling stake in rival Hutchison Essar.

In its monthly press release[citation needed], following statistics have been presented for end of April 2007.

  • Bharti Airtel added the highest ever net addition of 5.3 million customers in a single quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers in 2006-07
  • The company will invest up to $3.5 billion this fiscal (07-08) in network expansion.
  • It has an installed base of 40,000 cellsites and 59% population coverage
  • After the proposed network expansion, an additional 30,000 towers will result in the company achieving 70% population coverage
  • Bharti has over 39 million users as on March 31, 2007
  • It has set a target of 125 million subscribers by 2010
  • Prepaid customers account for 88.5% of Bharti’s total subscriber base, an increase from 82.7% a year ago
  • ARPU has dropped to Rs 406
  • Non-voice revenues, (SMS, voice mail, call management, hello tunes and Airtel Live) constituted 10% of total revenues during Q4, lower than 10.7% in the Q4 of the previous year
  • Blended monthly minutes of usage per customer in Q4 was at 475 minutes
  • Has completed 100% verification of its subscribers and in the process disconnected three lakh (300,000) subscribers
  • Bharti Airtel’s enterprise Services, President - David is busy connecting India to Europe. David announced the building of 15,000 km 3.84 Terrabit OFC sub-marine cable system connecting Europe [London] to India via the Middle East. The project is known as Europe India gateway [EIG] and is expected to cost $700 million, which is to be completed by Q2-2010. Alcatel Lucent and Tyco are the telecom vendors for the project.

Members in the EIG consortium include - AT&T, BT, C&W, Djibouti Telecom, Du, Gibtelecom, IAM, Libyan Telecom, MTN Group Ltd., Omantel, PT Comunicacoes-S.A, Saudi Telecom Company, Telecom Egypt, Telkom SA Ltd, and Verizon Business.

In May 2008, it emerged that Bharti Airtel was exploring the possibility of buying the MTN Group, a South Africa-based telecommunications company with coverage in 21 countries in Africa and the Middle East. The Financial Times reported that Bharti was considering offering US$45 billion for a 100% stake in MTN, which would be the largest overseas acquisition ever by an Indian firm. However, both sides emphasize the tentative nature of the talks, while The Economist magazine noted, "If anything, Bharti would be marrying up," as MTN has more subscribers, higher revenues and broader geographic coverage.[6] However, the talks fell apart as MTN group tried to reverse the negotiations by making Bharti almost a subsidiary of the new company [7]

Subscriber base

The Airtel subscriber base according to COAI - Cellular Operator Association of India as of November 2008[8] was:

The total is 78,908,993 or 31.65% of the total 249,349,436 GSM mobile connections in India till November 2008. In 2009 Airtel is launched in Srilanka also.

vodafone

Vodafone is a mobile network operator with its headquarters in Newbury, Berkshire, England, UK. It is the largest mobile telecommunications network company in the world by turnover and has a market value of about £75 billion (August 2008). Vodafone currently has operations in 25 countries and partner networks in a further 42 countries.[1]

The name Vodafone comes from Voice data fone, chosen by the company to "reflect the provision of voice and data services over mobile phones."[2]

As of 2006 Vodafone had an estimated 260 million customers in 25 markets across 5 continents.[3] On this measure, it is the second largest mobile telecom group in the world behind China Mobile.

In the United States, Vodafone owns 45% of Verizon Wireless, the largest American mobile telecommunications company.

Vodafone Group

In 1982 Racal Electronics plc's subsidiary Racal Strategic Radio Ltd. won one of two UK cellular telephone network licences.[4][5] The network, known as Racal Vodafone was 80% owned by Racal, with Millicom and the Hambros Technology Trust owning 15% and 5% respectively. Vodafone was launched on 1 January 1985.[6] Racal Strategic Radio was renamed Racal Telecommunications Group Limited in 1985.[5] On 29 December 1986 Racal Electronics bought out the minority shareholders of Vodafone for GB£110 million.[7]

In September 1988 the company was again renamed Racal Telecom and on 26 October 1988 Racal Electronics floated 20% of the company. The flotation valued Racal Telecom at GB£1.7 billion.[8] On 16 September 1991 Racal Telecom was demerged from Racal Electronics as Vodafone Group.[9]

In July 1996 Vodafone acquired the two thirds of Talkland it did not already own for £30.6 million.[10] On 19 November 1996, in a defensive move, Vodafone purchased Peoples Phone for £77 million, a 181 store chain whose customers were overwhelmingly using Vodafone's network.[11] In a similar move the company acquired the 80% of Astec Communications that it did not own, a service provider with 21 stores.[12]

In 1997 Vodafone introduced its Speechmark logo, as it is a quotation mark in a circle; the O's in the Vodafone logotype are opening and closing quotation marks, suggesting conversation.

On 29 June 1999 Vodafone completed its purchase of AirTouch Communications, Inc. and changed its name to Vodafone Airtouch plc. Trading of the new company commenced on 30 June 1999.[13] To approve the merger, Vodafone sold its 17.2% stake in E-Plus Mobilfunk.[14] The acquisition gave Vodafone a 35% share of Mannesmann, owner of the largest German mobile network.

vodafone's original logo used until the introduction of the speechmark logo in 1998.

On 21 September 1999 Vodafone agreed to merge its U.S. wireless assets with those of Bell Atlantic Corp to form Verizon Wireless.[15] The merger was completed on 4 April 2000.

In November 1999 Vodafone made an unsolicited bid for Mannesmann, which was rejected. Vodafone's interest in Mannesmann had been increased by the latter's purchase of Orange, the UK mobile operator.[16] Chris Gent would later say Mannesmann's move into the UK broke a "gentleman's agreement" not to compete in each other's home territory.[17] The hostile takeover provoked strong protest in Germany and a "titanic struggle" which saw Mannesmann resist Vodafone's efforts. However, on 3 February 2000 the Mannesmann board agreed to an increased offer of £112bn, then the largest corporate merger ever.[17] The EU approved the merger in April 2000. The conglomerate was subsequently broken up and all manufacturing related operations sold off.

On 28 July 2000 the Company reverted to its former name, Vodafone Group Plc. In April 2001 the first 3G voice call was made on Vodafone United Kingdom's 3G network.

Vodafone in Iaşi, Romania.
A map showing Vodafone Global Enterprise' footprint. Vodafone Operating Countries Vodafone's partners and affiliates

In 2001 the Company took over Eircell, then part of eircom in Ireland, and rebranded it as Vodafone Ireland. It then went on to acquire Japan's third-largest mobile operator J-Phone, which had introduced camera phones first in Japan.

On 17 December 2001 Vodafone introduced the concept of "Partner Networks" by signing TDC Mobil of Denmark. The new concept involved the introduction of Vodafone international services to the local market, without the need of investment by Vodafone. The concept would be used to extend the Vodafone brand and services into markets where it does not have stakes in local operators. Vodafone services would be marketed under the dual-brand scheme, where the Vodafone brand is added at the end of the local brand. (i.e., TDC Mobil-Vodafone etc.)

Vodafone Global Enterprise

Global Enterprise is a business set up by Vodafone with the sole purpose of handling Vodafone's multinational clients. It is the high end business to business section of Vodafone group, and acts like an operating country (such as for example Vodafone UK). Devices and services available in any operating country, are available to Global Enterprise customers in the same country, and so Vodafone Global Enterprise are able to offer a wide range of products. Vodafone Global Enterprise have a presence in over 65 countries and this number is expected to grow in future, as with the recent aqcuisition of Ghana Telecom. Since it's foundation in 2007, Global Enterprise has aimed to be a world leader in managed mobility services. Vodafone Global Enterprise are headquartered in Newbury, but do have operatives around the world; while many of Vodafone's marketing employees are relocated to London, Global Enterprise' team will remain in Newbury.

Nick Jeffery leads Vodafone Global Enterprise. He led the creation of Vodafone Global Enterprise in 2007 and continues to define the strategy and operational execution for Vodafone’s relationship with multi-national corporate customers. Global Enterprise have a dedicated group of account managers, at both global and national levels, who look after customers needs, and are supported by pre-sales and technical consultancy teams.

Products and Services include the Global Device Portfolio and Managed Services


Vodafone in Europe

Networks in Europe
Majority-owned
Minority-owned
No Ownership
Albania
France
Austria
Belgium
Czech Republic
Poland
Bulgaria
Channel Islands
Germany

Croatia
Cyprus
Greece

Denmark
Estonia
Hungary

Finland
Faroe Islands
Ireland

Iceland
Latvia
Italy

Lithuania
Luxembourg
Malta

Macedonia
Norway
Netherlands

Russia
Serbia
Northern Cyprus[citation needed]

Slovenia
Sweden
Portugal

Switzerland
Ukraine
Romania



Spain



Turkey



UK



In February 2002 Finland was added into the mobile community, as Radiolinja is signed as a Partner Network. Radiolinja later changed its named to Elisa. Later that year the Company rebranded Japan's J-sky mobile internet service as Vodafone live! and on 3 December 2002 the Vodafone brand was introduced in the Estonian market with signing of a Partner Network Agreement with Radiolinja (Eesti). Radiolinja (Eesti) later changed its name to Elisa.

On 7 January 2003 the Company signed a group-wide Partner agreement with mobilkom Austria. As a result, Austria, Croatia, and Slovenia were added to the community. In April 2003 Og Vodafone was introduced in the Icelandic market and in May 2003 Vodafone Italy (Omnitel Pronto-Italia) was rebranded Vodafone Italy. On 21 July 2003 Lithuania was added to the community, with the signing of a Partner Network agreement with Bitė.

In February 2004 Vodafone signed a Partner Network Agreement with Luxembourg's LuxGSM and a Partner Network Agreement with Cyta of Cyprus. Cyta agreed to rename its mobile phone operations to Cytamobile-Vodafone. In April 2004 the Company purchased Singlepoint airtime provider from John Caudwell (Caudwell Group) and approx 1.5million customers onto its base for £405million, adding sites in Stoke on Trent (England) to existing sites in Newbury (HQ), Birmingham, Warrington and Banbury. In November 2004 Vodafone introduced 3G services into Europe.

In June 2005 the Company increased its participation in Romania's Connex to 99% and also bought the Czech mobile operator Oskar. On 1 July 2005 Oskar of the Czech Republic was rebranded as Oskar-Vodafone. Later that year on 17 October 2005 Vodafone Portugal launched a revised logo, using new text designed by Dalton Maag, and a 3D version of the Speechmark logo, but still retaining a red background and white writing (or vice versa). Also, various operating companies started to drop the use of the SIM card pattern in the company logo. (The rebranding of Oskar-Vodafone and Connex-Vodafone also does not use the SIM card pattern.) A custom typeface by Dalton Maag (based on their font family InterFace) formed part of the new identity.

On 28 October 2005 Connex in Romania was rebranded as Connex-Vodafone and on 31 October 2005 the Company reached an agreement to sell Vodafone Sweden to Telenor for approximately 1 billion. After the sale, Vodafone Sweden became a Partner Network. In December 2005 Vodafone won an auction to buy Turkey's second-largest mobile phone company, Telsim, for $4.5 billion.[18] In December 2005 Vodafone Spain became the second member of the group to adopt the revised logo: it was phased in over the following six months in other countries.

In 2006 the Company rebranded its Stoke-on-Trent site as Stoke Premier Centre, a centre of expertise for the company dealing with Customer Care for its higher value customers, technical support, sales and credit control. All cancellations and upgrades started to be dealt with by this call centre. On 5 January 2006 Vodafone announced the completion of the sale of Vodafone Sweden to Telenor. On February 2006 the Company closed its Birmingham Call Centre. In 1 February 2006 Oskar Vodafone became Vodafone Czech Republic, adopting the revised logo and on 22 February 2006 the Company announced that it was extending its footprint to Bulgaria with the signing of Partner Network Agreement with Mobiltel, which is part of mobilkom Austria group.

On 12 March 2006 former chief, Sir Christopher Gent, who was appointed the honorary post Chairman for Life in 2003, quits following rumours of boardroom rifts. In April 2006 the Company announced that it has signed an extension to its Partner Network Agreement with BITE Group, enabling its Latvian subsidiary "BITE Latvija" to become the latest member of Vodafone's global partner community. Also in April 2006 Vodafone Sweden changed its name to Telenor Sverige AB and Connex-Vodafone became Vodafone Romania, also adopting the new logo. On 30 May 2006 Vodafone announced the biggest loss in British corporate history (£14.9 billion) and plans to cut 400 jobs; it reported one-off costs of £23.5 billion due to the revaluation of its Mannesmann subsidiary. On 24 July 2006 the respected head of Vodafone Europe, Bill Morrow, quit unexpectedly[19] and on 25 August 2006 the Company announced the sale of its 25% stake in Belgium's Proximus for €2 billion. After the deal, Proximus was still part of the community as a Partner Network. On 5 October 2006 Vodafone announced the first single brand partnership with Og Vodafone which would operate under the name Vodafone Iceland and on 19 December 2006 the Company announced the sale of its 25% stake in Switzerland's Swisscom for CHF4.25 billion (£1.8 billion). After the deal, Swisscom would still be part of the community as a Partner Network. Finally in December 2006 the Company completed the acquisition of Aspective, an enterprise applications systems integrator in the UK, signaling Vodafone's intent to grow a significant presence and revenues in the ICT marketplace.

Early in January 2007 Telsim in Turkey adopted Vodafone dual branding as Telsim Vodafone and on 1 April 2007 Telsim Vodafone Turkey dropped its original brand and became Vodafone Turkey. On 1 May 2007 Vodafone added Jersey and Guernsey to the community, as Airtel was signed as Partner Network in both crown dependencies. In June 2007 the Vodafone live! mobile Internet portal in the UK was relaunched. Front page was now charged for and previously "bundled" data allowance was removed from existing contract terms.[20] All users were given access to the "full" web rather than a Walled Garden and Vodafone became the first mobile network to focus an entire media campaign on its newly launched mobile Internet portal in the UK.[21] On 1 August 2007 Vodafone Portugal launched Vodafone Messenger, a service with Windows Live Messenger and Yahoo! Messenger.

On 17 April 2008 Vodafone extended its footprint to Serbia as Vip mobile was added to the community as a Partner Network and on 20 May 2008 the Company added VIP Operator as a Partner Network thereby extending the global footprint to Macedonia. In May 2008 Kall of the Faroe Islands rebranded as Vodafone Faroe Islands.

On 30 October 2008, the company announced a strategic, non-equity partnership with MTS group of Russia. The agreement adds Russia, Armenia, Turkmenistan, Ukraine, and Uzbekistan to the group footprint.[22]

Vodafone in Asia-Pacific

Networks in Asia-Pacific
Majority-owned
Minority-owned
No Ownership
Australia
China mainland
Afghanistan
Armenia
India
Fiji
Hong Kong
Indonesia
New Zealand
India
Japan
Malaysia


Samoa
Singapore


Sri Lanka
Turkmenistan


Uzbekistan

In July 1993 BellSouth New Zealand's network went live and October 1993 Vodafone Australia's network also went live. This was followed in July 1994 by Vodafone Fiji's network going live.

In November 1998 Vodafone purchased BellSouth New Zealand which later became Vodafone New Zealand. In 1999 J-Phone launched the J-sky mobile internet service in response to DoCoMo's i-Mode service. In December 2002 J-Phone's 3G network went live.

On 1 October 2003 J-Phone became 'Vodafone' and J-Phone's mobile internet service J-Sky became Vodafone Live!. On 3 November 2003 Singapore became a part of the community as M1 was signed as partner network.

In December 2004 Vodafone Australia agreed to deploy high-speed MPLS backbone network built by Lucent Worldwide Services using Juniper hardware.[23]

Then in April 2005 SmarTone changed the name of its brand to 'SmarTone-Vodafone' after both companies signed a Partner Network Agreement. In August 2005 Vodafone launched 3G technology in New Zealand and in October 2005 it began launching 3G technology in Australia. On 28 October 2005 the Company announced the acquisition of a 10 per cent stake in India's Bharti Televentures, which operates the largest mobile phone network in India under the brand name AirTel. On 22 December 2005 the Company announced the completion of the acquisition of the 10% stake in Bharti Televentures of India.

In January 2006 Indonesia, Malaysia, and Sri Lanka were added to the Vodafone footprint as Vodafone Group signed a partner network agreement with Telekom Malaysia. On 17 March 2006 Vodafone announced an agreement to sell all its interest in Vodafone Japan to SoftBank for £8.9 billion of which £6.8 billion will be received in cash on closing of deal. Vodafone Japan later changed its name to SoftBank Mobile. On 9 October 2006 Vodafone New Zealand bought New Zealand's 3rd largest I.S.P., iHug and on 1 November 2006 Vodafone Australia signed the Australian Football League (AFL)'s biggest individual club sponsorship deal with the Brisbane Lions for seasons 2007, 2008 and 2009.

On 6 February 2007 along with the partnership with Digicel Caribbean (see below), Samoa was added as a Partner Market. Then on 11 February 2007 the Company agreed to acquire a controlling interest of 67% in Hutchison Essar Limited for US$11.1 billion. At the same time, it agreed to sell back 5.6% of its AirTel stake back to the Mittals. Vodafone would retain a 4.4% stake in AirTel. On 21 September 2007 Hutch was rebranded to Vodafone in India.

On 10 February 2008 Vodafone announced the launching of M-Paisa mobile money transfer service on Afghanistan's Roshan: Afghanistan was added to the Vodafone footprint.

On 9 February 2009 Vodafone announced a merger with 3/Hutchison via a joint venture company VHA Pty Ltd, which would offer products under the Vodafone brand.

Vodafone in Africa and the Middle East

Networks in the Middle East and Africa
Majority-owned
Minority-owned
No Ownership
Egypt
DR Congo
Kenya
Bahrain
Ghana
Lesotho
Mozambique
UAE
Qatar1
South Africa2
Tanzania

1Network yet to be launched. Details pending further announcements.
2Network 50% owned.

In November 1998 Vodafone Egypt network went live under the name ClickGSM.

On 18 September 2002 Vodafone signed a Partner Network Agreement with MTC group of Kuwait. The agreement involved the rebranding of MTC to MTC-Vodafone. On 29 December 2003 Vodafone signed another Partner Network Agreement with Kuwait's MTC group. The second agreement involved co-operation in Bahrain and the branding of the network as MTC-Vodafone.

On 3 November 2004 the Company announces that its South African affiliate Vodacom had agreed to introduce Vodafone's international services, such as Vodafone live! and partner agreements, to its local market.

In November 2005 Vodafone announced that it was in exclusive talks to buy a 15% stake of VenFin in Vodacom Group, reaching agreement the following day. Vodafone and Telkom then had a 50% stake each in Vodacom.

On 8 November 2006 the Company announced a deal with Telecom Egypt resulting in further co-operation in the Egyptian market and increasing its stake in Vodafone Egypt. After the deal, Vodafone Egypt was 55% owned by the group, while the remaining 45% was owned by Telecom Egypt.

In December 2007 a Vodafone Group-led consortium was awarded the second mobile phone licence in Qatar and on 3 July 2008 Vodafone agreed to acquire a 70% stake in Ghana Telecom for $900 million. The acquisition was consummated on 17 August 2008. The same group-led consortium in Qatar wins the second fixed-line licence in the said country on 15 September 2008.

On 9 October 2008, the company offers to acquire an additional 15 per cent stake in Vodacom group from Telkom. The finalised details of the agreement was announced on 06 November 2008. The agreement calls for Telkom to sell a 15 of its 50 per cent stake in Vodacom to the group, and demerging the other 35 per cent to its shareholder. Meanwhile, Vodafone has agreed to make Vodacom its exclusive sub-Saharan Africa investment vehicle. Also, Vodafone agreed to continue maintaining the visibility of the Vodacom brand. The transaction is expected to close on May/June 2009.

On 28 January 2009, the group announced a partner network agreement with Du, the second-largest operator of the United Arab Emirates. The agreement involves co-operation on international clients, handset procurement, mobile broadband etc.

Vodafone in the Americas

Networks in the Americas
Minority-owned
No Ownership
USA
Anguilla
Antigua & Barbuda
Aruba
Barbados

Bermuda
Bonaire
Cayman Islands
Chile

Curaçao
Dominica
French West Indies
Grenada

Guyana
Haiti
Jamaica
St Kitts & Nevis

St Lucia
St Vincent & the Grenadines
Trinidad and Tobago
Turk & Caicos


For more information, see Verizon Wireless.

In the United States, Vodafone owns 45% of Verizon Wireless, the country's largest mobile carrier after their merger with Alltel. The percentage of the customer base and revenues of Verizon Wireless that Vodafone consolidates is slightly lower, since some Verizon Wireless subsidiaries have minority investors. (Hence the exact percentages that Vodafone and Verizon report vary from period to period: in June 2006 Vodafone reported that Verizon Wireless owned 98.6% of its customers at that date.) Before this joint venture was formed, Vodafone merged with AirTouch Communications of the U.S. in June 1999 and changed its name to Vodafone Airtouch Plc. In September 1999, Vodafone Airtouch announced a $70-billion joint venture with Bell Atlantic Corp. Verizon Wireless was composed of Bell Atlantic's and Vodafone AirTouch's U.S. wireless assets and began operations on April 4, 2000. However, Verizon Communications—the company formed when Bell Atlantic and GTE merged on June 30, 2000—owns a majority of Verizon Wireless and Vodafone's branding is not used, nor is the CDMA network compatible with GSM phones. This relationship has been quite profitable for Vodafone, but there have historically been three problems with it. The first is the above-mentioned incompatibility with the GSM 900/1800 MHz standard used by Vodafone's other networks, and the consequent difficulty of offering roaming between Vodafone's U.S. and other networks. The other two stem from the fact that Vodafone does not have management control over Verizon Wireless. Vodafone is thus unable to use the Vodafone brand for its U.S. operations, and (perhaps more importantly) has no control of dividend policy at Verizon Wireless and is therefore entirely at the mercy of Verizon management with respect to cash flow from Verizon Wireless.

Perhaps as a consequence of these reasons, Vodafone made a bid for the entirety of AT&T Wireless when that company was for sale in 2004. Had this bid been successful, Vodafone would presumably have sold its stake in Verizon Wireless, and then rebranded the resultant business as Vodafone. However, Cingular Wireless (a joint venture of SBC Communications and BellSouth (both now AT&T)) ultimately outbid Vodafone and took control of AT&T Wireless, and Vodafone's relationship with Verizon has continued.

Early in 2006 Verizon re-iterated their desire to buy out the remaining 45% of stock of Verizon Wireless from Vodafone Group. Vodafone has also repeatedly indicated that it would be willing to buy out Verizon's stake.

Verizon has announced that its 4G data network will be LTE, which is considered part of the GSM path and not the CDMA2000 path Verizon has been using; it has been suggested[who?] this is to appease Vodafone, which uses GSM on its own networks.


On May 11, 2008, Vodafone sealed a trade agreement with the Chilean Entel PCS Chile, in which Entel PCS enters the world of equipment and international services of Vodafone, and Vodafone will be one of the trademarks of Entel for the wireless business. It is not currently foreseen a sale of Entel PCS to Vodafone, but this is not ruled out for the future. This step will mean Vodafone will enter a market of over 17 million mobile numbers, currently divided among three companies, Telefonica Movistar, Claro and Vodafone-Entel PCS.

On 6 February 2007, Vodafone Group signed a three-year partnership agreement with Digicel Group. The agreement, which includes Digicel's sister operation in Samoa, will result to the offering of new roaming capabilities. The two groups will also become preferred roaming partners of each other. Along with Digicel's markets, the Vodafone brand is now present in 81 countries, regions, and territories. What is interesting to note, is that as well as being partners, Digicel and Vodafone are also rival operators in Fiji, where Digicel Fiji recently launched, and Vodafone owns a minority (49%) stake in Vodafone Fiji.

Chief Executives

Name Between
Sir Gerald Whent October 1988 - December 1996
Sir Christopher Gent January 1997 - July 2003
Arun Sarin July 2003 - July 2008
Vittorio Colao July 2008 - present

In a period just short of twenty years from its IPO, the Company had just three Chief Executives. The fourth CEO, Vittorio Colao, stepped up from Deputy Chief Executive in July 2008. Each of his predecessors made a personal contribution to the development of the Company.

Sir Gerald Whent, at that time an Executive with Racal Electronics Plc, was responsible for the bid for a UK Cellular Network licence. The Mobile Telecoms division was de-merged and was floated on the London Stock Exchange in October 1988 and Sir Gerald became Chief Executive of Racal Telecom Plc. Over the next few years the company grew to become the UK's Market Leader, changing its name to Vodafone Group Plc in the process.

Sir Christopher Gent took over as Chief Executive in January 1997 after Sir Gerald's retirement. Sir Christopher is responsible for transforming Vodafone from a small UK operator into the global behemoth that it is today, through the merger with the American AirTouch and the takeover of Germany's Mannesmann.

Arun Sarin was the driving force behind the Company's move into Emerging Markets such as Asia and Africa, through the purchases such as that of Turkish operator Telsim and a majority stake in Hutchison Essar in India. Faced with increased competition and penetration rates above 100% in the more mature European markets it was necessary to diversify from being a mobile-only business into a company which provided all telecommunications services. This has seen Vodafone launch DSL and other fixed-line services in markets such as Germany and the UK.

Financial results

Vodafone reportes its results in accordance with International Financial Reporting Standards (IFRS).

Vodafone has some large minority stakes, which are not included in its consolidated turnover. In order to provide additional information on the overall scale and growth trends of its business it publishes "proportionate turnover" figures and these are included in the tables below. For example, if a business in which it owns a 45% stake has turnover of £10 billion, that equals £4.5 billion of proportionate turnover for Vodafone. Proportionate turnover is not an official accounting measure and Vodafone's proportionate turnover should be compared with other companies' statutory turnover.

Vodafone also produces proportionate customer number figures on a similar basis, eg. if an operator in which it has a 30% stake has 10 million customers that equals 3 million proportionate Vodafone customers. This is a common practice in the mobile telecommunications industry.

Year ended 31 March Turnover £m Profit before tax £m Profit for the year £m Basic eps (pence) Proportionate customers (m)
2008 35,478 9,001 6,756 12.56 260
2007 31,104 (2,383) (5,297) (8.94) 206.4
2006* 29,350 (14,835) (21,821) (35.01) 170.6
2005 34,073 7,951 6,518 9.68 154.8
2004 36,492 9,013 6,112 8.70 133.4

*Losses for year to 31 March 2006 reflect write downs of assets, principally in relation to the Mannesmann acquisition. Proportionate turnover includes £7,100 million from discontinued operations.

Products

Products promoted by the Company include Vodafone live!, Vodafone Mobile Connect USB Modem, Vodafone Connect to Friends, Vodafone at Home, Vodafone 710 and Amobee Media Systems.

Corporate Sponsorship/Ownership

A Vodafone McLaren-Mercedes driven by Lewis Hamilton.

Vodafone sponsors the following teams and events:

Previous sponsorships by Vodafone include those of S.L. Benfica, Manchester United, Ferrari and the Benetton (now known as Renault F1) Formula One constructors,Egypt national football team under the name of ClickGSM and the Australia national rugby union team.