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Wireless Carrier Review: Vodafone

Founded in 1985 as Racal Telecommunications Group Ltd., Vodafone Group Plc is a telecommunications company headquartered in Newbury, England. The company operates in dozens of countries throughout the world, primarily located in Asia, Africa, Europe and Oceania. 

Vodafone is one of Europe’s leading mobile and fixed network operator, serving 300 million mobile customers, more than 27 million fixed broadband customers, over 22 million TV customers and connecting more than 118 million IoT devices. 

The company employs around 95,000 workers across its various global locations, according to its most recent annual report.

This profile provides insights into all of Vodafone, including information on its solutions, target markets, partnerships, user opinion, industry recognition and financial position: 

Vodafone logo.

Courtesy Vodafone.

Mobile solutions

Vodafone provides a host of mobile solutions for enterprise organizations: 

  • Enterprise mobility: The company offers mobile solutions geared toward businesses of all sizes, including mobile voice and data tariffs that allow enterprises to stay connected on the same network across country borders, reducing connectivity issues and costs. 

  • Fixed connectivity: Vodafone offers an end-to-end approach aimed at maintaining connectivity across multiple sites.

  • Vodafone business messaging services: Application-to-person (A2P) SMS messaging capabilities keep teams connected across a data connection.

  • Unified communications: Vodafone works with companies to customize a mix of technology for specific business needs, with a goal of interconnecting services, applications, clouds and on-prem networks for seamless conferencing and other remote communication needs.

  • Internet of Things (IoT): Vodafone’s IoT offerings include supply chain solutions and asset management, among other standard IoT services.  

Target markets

As one of the world’s largest telecommunications company, Vodafone holds a prominent position in the mobile markets of several key geographic markets, including:

  • United Kingdom

  • Egypt

  • Qatar

  • United Arab Emirates

  • Japan

  • India

  • Italy

  • Spain

In total, Vodafone owns and operates networks in 22 countries and partners with other network providers in another 48 countries. 

In its 2020 annual report, Vodafone identifies three key areas where the company will continue focusing:

  • Deepening customer engagement

  • Accelerating digital transformation

  • Improving asset utilization 

For each of these three goals, the company plans to target customer bases in every geographical  market where Vodafone has a presence. In the report, Vodafone identifies progress in categories like “European mobile contract customers,” “Africa data users,” and “Average Europe monthly mobile data usage per customer.” These indicators plainly demonstrate an upward trajectory for Vodafone, even throughout the COVID-19 pandemic that significantly affected global business throughout 2020.

Vodafone includes several strategic highlights within its three key goals, including:

  • An increase of 7 million data users in Africa

  • Q4 2020 was the 6th consecutive quarter showing improved customer loyalty in Europe

  • 65% MyVodafone app penetration

  • A 0.4 billion euro cost savings over prior years and a goal to reach 1.0 billion euro cost savings for FY21-23

  • Several new international acquisitions, including Unitymedia, CEE cable and Abcom in Albania

  • Mobile network sharing agreements are in place in all major European markets 

Partnerships

Vodafone partners with a wide array of other network providers and companies to co-create products and services, including:

  • BAE Systems

  • Dell

  • Hewlett Packard

  • Ciena

  • Cisco

  • Fortinet

  • Google

  • Microsoft

  • Huawei

  • Zscaler

Another interesting Vodafone partnership is through HERE Technologies. The companies are working with Porsche to develop 5G-enhanced, precise location tracking that has the potential to improve traffic safety and reduce road accidents. 

User opinion

As a sizable company that serves as a parent to many subsidiaries, user rankings related to targeted Vodafone services and operations are helpful for evaluating user perception about the company. 

For example, users at Gartner Peer Insights give Vodafone Managed Mobility Services a score of 4.4 out of 5.0. Users give high marks to three key areas:

  • Service Capabilities

  • Evaluation & Contracting

  • Delivery & Execution

Here are a few aggregated scores for Vodafone from prominent user review sites:

Review Site

Rating

Featured Customers

4.8/5.0

Reviews.io

2.0/5.0

G2

3.6/5.0

Industry recognition

Recent industry recognition includes:

  • Capacity Media Messaging & SMS Global Awards 2018: Winner, Best SMS/A2P Provider

  • Total Telecom World Communications Awards 2018: Finalist, Best Wholesale Operator

  • Identified as “Leader” in Gartner’s 2020 Magic Quadrant for Network Services, Global

  • Trusted Reviews Awards 2020, Best Network Provider of the Year

  • 2020 Mobile Industry Awards, Best High Street Retailer and Best Network for Loyalty & Retention

Financial position

While Vodafone’s total revenue declined by 2.6% in 2020, both the company and industry analysts expect a return to the growth rate enjoyed by Vodafone before the global pandemic. 

In its annual report, the company says it is confident about the short-term outlook after Vodafone’s German division drove a “return to organic growth in the third quarter.” This area of growth helped to offset declines experienced by the company in other European countries, including a notable 7.8% drop in Italy. Still, revenues have been steadily rising in Vodafone’s African and Middle Eastern markets.

Vodafone is a “cash-generating behemoth,” according Richard Hunter, head of markets at Interactive Investor, in an article at ShareCast. Hunter says that versus other companies entering the post-pandemic recovery stage, the company's dividend yields have been “punchy and unusual.” 

Vodafone is listed on the London Stock Exchange and is part of the FTSE 100 Index and has a secondary listing on Nasdaq. 

Conclusions

Vodafone has established itself as a global telecommunications leader, especially when it comes to mobile communications throughout Europe.

The company offers mobile solutions at virtually any level, including a portfolio of mobile solutions for large-scale organizations. 

Potential clients and partners can feel confident that Vodafone will remain a leading force in the industry with a promising financial outlook.

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