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Saturday, May 19, 2012

Vodafone Company


Company Profile
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.  Vodafone currently has operations in 25 countries and partner networks in a further 42 countries.

Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 23 telecom circles in India.   Despite the official name being Vodafone Essar, its products are simply branded Vodafone.  It offers both prepaid and postpaid GSM cellular Phone coverage throughout India with good presence in the metros.

Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 23 of the country’s 23 license areas.  It is among the top three GSM mobile operators of India.

Ownership
Vodafone Essar is owned by Vodafone 52% Essar group, 33% and other Indian Nationals, 15%.

On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, piping reliance Communications, Hinduja group, and Essar Group, which is the owner of the remaining 33%.  The whole company was valued at USD 18.8 billion.  The transaction closed on May 8, 2007.

Previous Brands
In Mumbai, it was earlier known by the name orange, a brand that used to be marketed by its former owner, Hutchison.  Still earlier it was known as max Touch and Ace Tel even before that.

In December 2006, Hutch Essar re-launched the “Hutch” brand Nationwide, consolidating its services under a single identity.  The Company entered into agreement with NTT DoCoMo to launch i-mode mobile Internet service in India during 2007.

The company used to be named Hutchison Essar, reflecting the name of its previous owner, Hutchison.  However, the brand was marketed as Hutch.  After getting the necessary Government approvals with regards to the acquisition of a majority by the Vodafone group, the company was re-branded as Vodafone Essar. The marketing brand was officially changed to Vodafone on 20 September 2007.

On September 20, 2007 Hutch becomes Vodafone in one of the biggest brand transition exercises in recent times.

Vodafone Essar is spending somewhere in the region of Rs. 250 crores on this high profile transition being unveiled today.  Along with the transition, cheap cell phones have been launched in the Indian Market under the Vodafone brand.  the company also plans to launch co-branded handsets sourced from global vendors as well.

A popular daily quoted a Vodafone Essar director as saying that “The objective is to leverage Vodafone Group’s global scale in bringing millions of low-cost handsets from across-the-world into India”.

formation of Vodafone with the HECP of HUTCH
In 1992 Hutchison Whampoa and its Indian business partner established a company that in 1994 was awarded a license to provide mobile telecommunications services in Mumbai (formerly Bombay) and launched commercial service as Hutchison Max in November 1995.  Analjit Singh of Max still holds 12% in company.

In Delhi, UP (E), Rajasthan and Haryana, ESSAR was the major partner.  But later Hutch took the majority Stake.

By the time of Hutchison Telecom’s Initial Public Offering in 2004, Hutchison Whampoa had acquired interests in six mobile telecommunications operators providing service in 13 of India’s 23 license area and following the completion of the acquisition of BPL that number increased to 16. In 2006, it announced the acquisition of a company (Essar Spacetel-A subsidiary of Essar Group) that held license applications for the seven remaining license areas.

In a country growing as fast as India, a strategic and well managed business plan is critical to success.  Initially, the company grew its business in the largest wireless markets in India – in cities like Mumbai, Delhi and Kolkata.  In these densely populated urban areas it was able to establish a robust network, well known brand and large distribution network – all vital to long-term success in India.  Then it also targeted business users and high-end post-paid customers which helped Hutchison Essar to consistently generated a higher Average Revenue Per User (“ARPU”) than its competitors.  By adopting this focused growth plan, it was able to establish leading positions in India’s largest markets providing the resources to expand its footprint nationwide.

In February 2007, Hutchison Telecom announced that it had entered into a binding agreement with a subsidiary of Vodafone Group Plc to sell its 67% direct and indirect equity and loan interests in Hutchison Essar Limited for a total cash consideration (before costs, expenses and interests) of approximately US$ 11.1 billion of HK#87 billion.

1992: Hutchison Whampoa and Max Group established Hutchison Max
2008: Acquisition of Delhi operations Entered Calcutta and Gujarat markets through ESSAR acquisition
2001: Won auction for licences to operate GSM services in Karnataka, Andhra Pradesh and Chennai.
2003:  Acquired AirCel Digilink (ADIL – ESSAR Subsidiary) which operated in Rajastan, Uttar Pradesh East and Haryana telecom circles and renamed it under Hutch brand.
2004:  Launched in three additional telecom circles of India namely “Punjab”, “Uttar Pradesh West Bangal”
2005 : Acquired BPL (Except Mumbai) -3  Circles, another mobile service provider in India
2008: Vodafone acquired the Licence in remaining 7 Circles and has started its pending operations in Madhya Pradesh/Chattisgarh with its headquarters at Malviya nagar, Bhopal as well as in Orissa, Assam, North East and Bihar.
2008: Vodafone launched the Apple iPhone 3G to be used on its 17 circle 2.75G network. 

Hutch was often praised for its award winning advertisements which all follow a clean, minimalist look.  a recurrent theme is that its massage Hello stands out visibly though it uses only white letters on red background.  Another recent successful and campaign in 2003 featured a pug named Cheeka following a boy around in unlikely places, with the tagling, wherever you go, our network  follows.  The simple yet powerful advertisement campaigns won it many admires.

Subscriber Base:
The Vodafone subscriber base according to COAI – Cellular Operator Association of India as of Nov 2008 was:
  • City/Circle              Nov 2008
  • Mumbai                  4115671
  • Delhi                      3741037
  • Kolkatta                  2481872
  • Chennai                 1472340
  • Gujarat                  7241167
  • A.P                        3430016
  • Karnataka               3333207
  • Punjab                   1944733
  • Haryana                 1878339
  • U.P (E)                   5589567
  • Rajasthan               4343407
  • UP (W)                   3825035
  • West Bengal            4000994
  • Maharashtra            3833719
  • Tamil Nadu            4509341
  • Kerala                    2704412
  • Orissa                    137445
  • Assam                             45486
  • North East              29814
  • Madhya Pradesh      50213
  • Chattisgarh             207 Only
  • Bihar                      76349
  • Himachal Pradesh    193

The total is 54,624,809 or 23.38% of the total 233,676,930 GSM mobile connections in India till February 2009.

Vodafone Essar 58,764,164 or 23.57% of total 249,349,436

Vodafone is here: Hutch is now Vodafone

20 September 2007
Mumbai, September 20, 2007: Vodafone, the world’s leading international mobile communications company, has fully arrived in India. Vodafone Essar announced today that the Vodafone brand will be launched in India from 21st September onwards.

The popular and endearing brand, Hutch, will be transitioned to Vodafone across India. This marks a significant chapter in the evolution of Vodafone as a dynamic and ever-growing brand. The brand change over the next few weeks will be unveiled nationally through a high profile campaign covering all important media.

Vodafone, the world’s leading mobile telecommunication company, completed the acquisition of Hutchison Essar in May 2007 and the company was formally renamed Vodafone Essar in July 2007. Asim Ghosh, Managing Director, Vodafone Essar, said "We’ve had a great innings as Hutch in India and today marks a new beginning for us. Not as a departure from the fundamentals that created Hutch, but an acceleration into the future with Vodafone's global expertise."

Harit Nagpal, Marketing and New Business Director, Vodafone Essar, said, "This transition is probably the largest brand change ever undertaken in this country and arguably as big as any in the world. It is even larger than our own previous brand transitions as it touches over 35 million customers, across 400,000 shops and thousands of our own and our business associates' employees."

The Vodafone mission is to be the communications leader in an increasingly connected world – enriching customers’ lives, helping individuals, businesses and communities be more connected by delivering their total communication needs.

Vodafone's logo is a true representation of that belief - The start of a new conversation, a trigger, a catalyst, a mark of true pioneering.

About Vodafone Essar Limited
Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular licence for Mumbai. Vodafone Essar now has operations in 16 circles covering 86% of India’s mobile customer base, with over 34.1 million customers*.

Over the years, Vodafone Essar, under the Hutch brand, has been named the 'Most Respected Telecom Company', the 'Best Mobile Service in the country' and the 'Most Creative and Most Effective Advertiser of the Year'. Vodafone is the world's leading international mobile communications company. It now has operations in 25 countries across 5 continents and 40 partner networks with over 200 million customers worldwide. Vodafone has partnered with the Essar Group as its principal joint venture partner for the Indian market.

The Essar Group is a diversified business corporation with interests spanning the manufacturing and service sectors like Steel, Energy, Power, Communications, Shipping & Logistics and Construction. The Group has an asset base of over Rs.400 billion (US$ 10 billion) and employs over 20,000 people.

 

COMPANY OVERVIEW

For the fiscal year ended March 2005, Vodafone Group reported revenues of $61,849 million, an increase of 28.8% against the previous year. The company reported a net income loss of $16,615 million for the year.

 

COMPANY DESCRIPTION

Vodafone is one of the world’s largest wireless telecommunications companies, with a significant presence in Continental Europe, the UK, the US and the Asia Pacific region, through its subsidiaries, joint ventures and associated undertakings. Vodafone also has interests in wireless telecommunications businesses in the Middle East and Africa. The group provides a full range of wireless telecommunications services, including cellular, PCS, paging and data communications.

The company’s data service offerings include Vodafone Live! and Vodafone Mobile Office. Vodafone Live! is Vodafone's data service which bundles together GPRS based consumer services such as picture messaging, Java games, ring tones and infotainment services. Vodafone Live! is based on standards such as MMS, WAP 2.0 and J2ME and was developed by a range of teams across the Vodafone group including J-Phone and Vodafone Global Content Services (formerly Vizzavi).

Vodafone's business equivalent of Vodafone Live! is Vodafone Mobile Office. Services marketed under this brand offer fast data transmission, access to corporate networks and other data services that are attractive to business customers. Mobile Connect Card is the first of Vodafone's global business services to be offered under the Mobile Office name.

The company’s business activities are split into six areas based on geographical regions. These divisions are UK & Ireland, Northern Europe, Southern Europe, The Americas, Asia-Pacific and Middle East/Africa. The divisions are made up of several subsidiaries active in different markets.

In Europe, Vodafone holds interests in a number of major mobile providers in a variety of countries such as Portugal, Spain, Greece, Ireland, the Netherlands and Sweden. The company’s major investments are held through its affiliate, Vodafone AG, in Germany. Vodafone also has controlling interests in SFR in France and Omnitel in Italy, although these companies now operate under the Vodafone brand name.

Vodafone operations in the Americas include its large interest in the US company, Verizon Wireless. Verizon Wireless is a joint venture between Vodafone and Verizon Communications. Vodafone owns a 44% stake in Verizon Wireless.

In the Asia-Pacific region, Vodafone activities include its operations in Australia, New Zealand and Fiji where the company offers mobile services under its own name. The company’s operations in this region also include its equity stakes in J-Phone Vodafone of Japan and China Mobile. Vodafone has a near 98% stake in J-Phone through Vodafone K.K., while its stake in China Mobile currently stands at just over 3%.

Vodafone? S activities in the Middle East and Africa include its operations in Egypt, Kenya, Kuwait and South Africa. The company owns 67% of Vodafone Egypt, 35% of Safaricom of Kenya and 35% of Vodafone of South Africa. Vodafone also holds a stake in MTC Vodafone of Kuwait.

The UK remains an important part of the group’s activities. Through its wholly owned subsidiary, Vodafone UK, the company provides mobile services to many millions of customers. The company also operates a paging business in the UK.

Vodafone is investing in both its global platform and Internet services. With 3G technologies, Vodafone will be able to offer users increased bandwidth connections to wireless handsets, allowing them to access a range of new services. These will include video telecommunications, high speed access to corporate intranets and the Internet; and the provision of electronic mail services, which allow the user to access and control a range of messaging options, including email and voice mail.

KEY EMPLOYEES:

NAME

LEVEL

Lord MacLaurin of knebworth
Chairman
Kenneth J Hydon
Finance Director and Director
Thomas Geitner
Chief Technology Officer and Director
Arun Sarin
CEO
Peter R Bamford
Chief Marketing Officer and Director

COMPANY VIEW:
Arun Sarin, Chief Executive of Vodafone, made the following statement. The statement was taken from the company's 2004 Annual Report.

Mobile telecommunications is one of the most dynamic industries today. Its potential is vast. Today wireless technology only reaches one fifth of the world's population. In fact, 2 billion people have never even made a phone call. I'm delighted by the prospect that their first call could very well be made on a mobile phone.

In the coming years, the increasing number of mobile customers will enjoy a very different range of services. With the arrival of 3G and other new technologies and the significant increase in voice capacity and data rates they provide, the opportunity for growth in this industry is tremendous. The wireless future holds even more ways for people to share memorable moments, anywhere, anytime.

During my first year with Vodafone I have visited every part of our organization, met with customers, employees, business leaders, regulators and stakeholders. I have reviewed our strategies, studied our operational practices and taken stock of the business we are managing on behalf of our customers and our shareholders. I am inspired by what I see.

Across our business we have plans to capitalize on market trends by applying our understanding of customer needs and deploying systems and technology to deliver high quality, great value, wireless services.

Our Goals:
At Vodafone, everything we do, further our desire to create mobile connections for individuals, businesses and communities. Our Vision is to be the world's mobile communications leader and we're delighted by the prospects for the future of our industry.

Our commitment to this industry is underlined by our company values, which state that everything we do is driven by our passion for customers, our people, results and the world around us.


Ø   
As the fact shows that maximum ordering decisions are influenced by customer demand, company may try to motivate the respondents since they contribute a lot in increasing the sales of the company.
Ø    The company may try to bring out attractive incentive schemes for the People.
Ø    The company may take some measure to increase the preference of Onida brand among the customers.
Ø    The company may organize in-house meetings which gives an opportunity to People to project their grievances.

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