A

PROJECT REPORT

ON

“VODAFONE”

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THEDEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION 2009-10

UNDER THE GUIDANCE OF Ms. Neha

NAME OF THE FACULTY : Ms. NEHA

FACULTY, MAIMS

SUBMITTED BY: ANMOL MALIK

Maharaja Agrasen Institute of Management Studies

Affiliated to Guru Gobind Singh Indraprastha University, Delhi

PSP Area, Plot No. 1, Sector 22, Rohini Delhi 110086

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 DECLARATION

I hereby declare that the project report entitled topic,” Marketing Strategies of Vodafone” is
based on my original study and has not been submitted earlier for any degree or diploma of
any Institution/University.

The work of the author’(s) wherever used, has been acknowledged at appropriate place.

Date………………….

Candidate signature

Place………………… Name…………………………

Enroll. No…………………

Counter Signed

Name……………………….

(Faculty Guide)

MAIMS

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 CERTIFICATE

This is to certify that the project titled “Marketing Strategies of Vodafone.” is an academic
work done by “ Anmol Malik” submitted in the partial fulfillment of the requirement for the
award of the degree of Bachelor Of Business Administration from Maharaja Agrasen
Institute of Management Studies, Delhi, under my guidance & direction. To the best of my
knowledge and belief the data & information presented by her in the project has not been
submitted earlier.

Name of the Faculty Guide

ACKNOWLEDGEMENT
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I would like to say that I am feeling very overwhelmed and privileged to present the project.
Apple Inc. is an American multinational corporation, the company's best-known for
hardware.

Apple Inc. has always spelt trust - be it with the products themselves or with the service
standards. They have built trust by aligning themselves with the needs of customers over the
years of trust.

It bring outs the present and future marketing strategies of Apple Inc. and the factors leading
to the success of it.

First of all, I would like to express my thanks to Mr KAKKAR (director, MAIMS) for giving
me such a wonderful opportunity to widen the horizons of my knowledge .

In no small measure, I would also like to gratefully thank to all those who gave me
constructive suggestions for the improvement of all the aspect related to this project. In
particular, I would like to thank Mrs. Neha Verma for the assistance.

I also owe a deep sense of gratitude to the faculty for their continuous encouragement.

Despite all efforts, I have no doubt that error and obscurities remain that seen to afflict all
writing projects and for which I am culpable.

ANMOL MALI K
0906111708

TABLE OF CONTENT

Page No.

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1. Abstract 1
2. Introduction 3
3. Objectives of the Study 4
4. Literature Review 5
5. Research and Methodology 7
(a) Research Design
(b) Time Frame
(c) Limitation of the Study
6. Retail sector of India
(a) Key factors in Indian Retail 8
(b) Liberalizing FDI 10
(c) Organized Sector 14
(d) Organized Sector set for Big Leap 17
(e) Challenges in Indian Retail Boom 21
(f) Retail revolution 28
(g) Organized retail: India vs. china 30
(h) key trends 33
(i) Mall over capacity? 35
(j) Big player’s of Indian retail sector 38

• Reliance fresh 39
• Reliance future plan 41
• Wal-mart 46
• Reliance on wal-mart 5
8. Analysis 56
9. Conclusion 58
10. Recommendations 59
11. References 60

Purposes of the Study Report

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 The process of objective self-study is necessary for any institution wishing to remain vital
and vigorous and is particularly crucial for institutions of higher learning. Periodically
reexamining the institution’s purpose, mission, goals, planning, and assessment helps to
maintain quality educational programs and fosters innovative thinking. Only by carefully
examining the past and honestly evaluating the present can an institution effectively plan for
the future.
The purpose of this Study was multi-faceted: to provide comprehensive examination of the
nature of the educational programs at Maharaja Agrasen College of Management Studies; to
revise, where necessary, characteristics of those programs; and to identify resources and
strategies to assure continued development of quality educational programs.

Though the major purpose of this Study was to achieve reaffirmation of accreditation by
showing compliance. This Self-Study Report will serve not only as an accounting of our
compliance with the Criteria, but also as a springboard for continued examination of
institutional effectiveness and as a guide for future planning and assessment efforts.

RESEARCH OBJECTIVE OF THE STUDY

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1. To review the services offered in India.

2. To know the present and future strategies of the company

RESEARCH METHODOLOGY OF THE STUDY

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The data the project report contains is all secondary data. The secondary data was collected
from the internet, books, journals, magazines and newspapers.

Secondary data are those data that have already been collected by someone else and have
already passed through the statistical process.

The secondary data is the type of data chosen by me.

LIMITATIONS

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1. Due to wide spread information of the data, the scope of project becomes very wide.

2. All the matter has been collected through secondary sources; hence, the errors might
have crept in.

3. Given the time constraints, all the information could not be gathered.

4. Data being very vast, appropriate information could not be gathered to the point
specific requirement needs.

INTRODUCTION

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Vodafone is a British 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 31 countries and partner networks in a further 40 countries.

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

As of 2009, Vodafone had an estimated 303 million customers in 31 markets across 5

continents.[3] On this measure, it is the second largest mobile telecom group in the world
behind China Mobile.

Vodafone owns 45% of Verizon Wireless, the largest wireless telecommunications network
in the United States, based on number of subscribers.

VODAFONE GROUP

In 1982 Racal Electronics plc's subsidiary Racal Strategic Radio Ltd. won one of two UK
cellular telephone network licences; the other going to British Telecom 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. 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.

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. On 16 September 1991, Racal Telecom was demerged from Racal
Electronics as Vodafone Group.

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In July 1996, Vodafone acquired the two thirds of Talkland it did not already own for £30.6
million. 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. In a similar move the company acquired the 80% of Astec Communications that it
did not own, a service provider with 21 stores.

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.

On 21 September 1999, Vodafone agreed to merge its U.S. wireless assets with those of Bell
Atlantic Corp to form Verizon Wireless. 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. 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. 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. 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.

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 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 (B2B) 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
its foundation in 2007, Global Enterprise has aimed to be a world leader in managed mobility
services. Vodafone Global Enterprise are headquartered in Newbury, but have operatives

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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: Enterprise Central, Telecomms Management, Global Device
Portfolio and Managed Mobility Services. In 2009, Vodafone Global Enterprise was the
winner of Best Mobile Enterprise Service at the GSMA Global Mobile Awards 2009.

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 Rep. of Macedonia Norway

Netherlands Russia Serbia

Northern Cyprus 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,
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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, Omnitel
(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 1.5 million
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 US$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, quit following rumours of boardroom rifts.[citation needed] In April
2006, the Company announced that it had 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
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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 then
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 information and
communication technologies (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. In addition, Vodafone Turkey also gives service in Turkish
Republic of Northern Cyprus. 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 the Republic of 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 Mobile
TeleSystems (MTS) group of Russia. The agreement adds Russia, Armenia, Turkmenistan,
Ukraine, and Uzbekistan to the group footprint.[22]

On 20 March 2009, it was announced that the group's Luxembourg partner has been changed
to Tango: the agreement with LuxGSM was not renewed in favour of Tango, the
Luxembourg unit of another partner network, Belgacom of Belgium.[23]

At the end of 2007, Vodafone Germany was ranked 6th in Europe by subscriber numbers,
whilst its Italian operation was listed as 10th. Vodafone UK was ranked 13th, whilst Spain
was listed in 16th place.

Asia-Pacific

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 Networks in Asia-Pacific

Majority-owned Minority-owned No Ownership

Australia China mainland Afghanistan Armenia

India Fiji Azerbaijan Hong Kong

New Zealand India Japan Malaysia

Samoa Singapore

Sri Lanka Thailand

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.[25]

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 internet service provider, 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
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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 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.

On 10 February 2008, Vodafone announced the launching of M-Paisa mobile money transfer
service on Roshan's (Afghanistan's largest GSM operator) network: Afghanistan was added
to the Vodafone footprint.

On 5 September 2008, Vodafone purchased Australia's largest bricks and mortar mobile
phone retailer Crazy John's adding 115 retail stores to its local operations.[26]

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. dtac in
Thailand is signed as a partner network of the Group on 25 March 2009.

On 19 June 2009, Vodafone-Hutchison Australia (VHA) announced the end of its

outsourcing of retail operations. VHA committed to buying back and managing its entire
retail operation, including 208 Vodafone-branded retail outlets Australia-wide. This project is
slated to be completed by 1 September 2009.

Azerfon in Azerbaijan is signed as a Partner Network on 22 July 2009.

Africa and the Middle East

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 Networks in the Middle East and Africa

Majority-owned Minority-owned No Ownership

DR Congo1 Egypt Kenya Kuwait

Ghana Lesotho1 Bahrain

Mozambique1 Qatar2 UAE

Tanzania1 South Africa1

1
Majority stakes held through majority-owned Vodacom Group
2
Effective ownership is not majority, but full control exercised by the group.

Egypt

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

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.

Kuwait

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.

South Africa (Vodacom)

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. Vodafone now owns 65% of Vodacom after
purchasing a 15% stake from Telkom.[27]

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 6
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.

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Also, Vodafone agreed to continue maintaining the visibility of the Vodacom brand. The
transaction is expected to close on May/June 2009.

On 18 May 2009, Vodacom floats onto the JSE Limited stock exchange in South Africa after
Vodafone increased its stake by 15% to 65% to take a majority holding, despite disputes by
local trade unions.

Ghana

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 15 April 2009, Ghana Telecom, along with its mobile subsidiary onetouch, is rebranded
as Vodafone Ghana.

U.A.E.

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.

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The Americas

Networks in the Americas

Minority-
No Ownership
owned

Antigua &
USA1 Anguilla2 Aruba2 Barbados2
Barbuda2

Bermuda2 Bonaire2 Canada3 Cayman Islands2

French West
Chile4 Curaçao2 Dominica2
Indies2

Grenada2 Guyana2 Haiti2 Honduras2

St. Kitts &

Jamaica2 Panama2 St. Lucia2
Nevis2

St. Vincent & the Trinidad &

Turk & Caicos2
Grenadines2 Tobago2

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 4 April
2000. However, Verizon Communications - the company formed when Bell Atlantic and
GTE merged on 30 June 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, at the time a joint venture of SBC

Page | 20
Communications and BellSouth (both now part of AT&T), ultimately outbid Vodafone and
took control of AT&T Wireless (the combined wireless carrier is now AT&T Mobility), 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 11 May 2008, Vodafone sealed a trade agreement with the Chilean Entel PCS Chile, in
which Entel PCS has access to the equipment and international services of Vodafone, and
Vodafone will be one of the trademarks of Entel for the wireless business. This step will give
the Vodafone brand access to a market of over 15 million people, currently divided among
three companies: Telefonica Movistar, Claro, and Entel PCS.

Mobile Money Transfer Service

In March 2007, Safaricom, which is part owned by Vodafone and the leading mobile
communication provider in Kenya, launched a mobile payment solution developed by
Vodafone.[28] M-PESA is aimed at mobile customers who do not have a bank account,
typically because they do not have access to a bank or their income is insufficient to justify a
bank account. The M-PESA system allows customers to deposit and withdraw cash via local
agents, and transfer money to other mobile phone users via SMS.

By February 2008, the M-PESA money transfer system in Kenya had gained 1.6 million
customers[29] and Vodafone announced that it was to extend the service to Afghanistan.[30] The
service here was launched on the Roshan network under the brand M-Paisa with a different
focus to the Kenyan service. M-Paisa was targeted as a vehicle for microfinance institutions'
(MFI) loan disbursements and repayments, alongside business to business applications such
as salary disbursement.

The Afghanistan launch was followed in April 2008 by the announcement of further a further
launch of M-PESA in Tanzania. As an operator of money transmission services, Vodafone
became subject to anti-money laundering regulation and in July 2008, it was revealed that it
had deployed a sanctions and PEP (Politically Exposed Persons) screening solution from
Datanomic for weekly screening of 2.5 million customers in Tanzania.[31] The screening
service was to be rolled out to Afghanistan, Kenya, India and Datanomic disclosed that the
solution might be used to screen all of Vodafone's 300 million customers globally.

Chief Executives

Name Between
Page | 21
Sir Gerald Whent October 1988 – December 1996

Sir Christopher
January 1997 – July 2003
Gent

Arun Sarin July 2003 – July 2008

Vittorio Colao July 2008 – present

In a period just short of twenty years from its initial public offering, 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.

Page | 22
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 Profit before Profit for Basic eps Proportionate

Turnover £m
March tax £m the year £m (pence) 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.

The group's recent first quarter trading update (24 July, 2009) saw management reiterating its
profit guidance for the full year. Whilst revenues across Europe had been relatively weak,
mirroring general economic conditions, there had been a positive showing from South Africa,
with the company's Indian purchase of Hutchison Essar continuing to generate returns.
Meanwhile, its joint venture with Verizon in the US had strengthened further, with
Vodafone's overall customer base now standing at 315 million - 8 million having been added
during the first quarter. In addition, management noted that its cost reduction programme,
targeted to save £1bn in operating costs by the end of the 2011 financial year, would reach
65pc of its target by the end of the current financial year.

Products

Products promoted by the Group include Vodafone live!, Vodafone Mobile Connect USB
Modem, Vodafone Connect to Friends, Vodafone Passport, Vodafone Freedom Packs,
Vodafone at Home, Vodafone 710 and Amobee Media Systems. Between June and August
2009, Vodafone have abolished roaming charges within 35 different countries, allowing their
customers to take their standard UK price plan abroad.

Corporate sponsorship

Page | 23
A Vodafone-sponsored McLaren-Mercedes driven by Lewis Hamilton

Vodafone sponsors the following teams and events:

• Kshitij, Annual Techno-management festival of IIT Kharagpur, Strategic Partner

2008
• Albania national football team, 2008 sponsor
• Brisbane Lions Football Club, Australian rules football team, major sponsor from
2007
• Indian Premier League (Cricket), Associate sponsor
• Bucharest Ring – Vodafone Bucharest Challenge 07, primary sponsor
• Clare Gaelic Athletic Association
• Deutsche Tourenwagen Masters (DTM - German Touring Car Masters) series (2002–
2007) (formerly D2).
• Vodafone Oaks and Vodafone Derby horse races
• Gaelic Athletic Association - Vodafone is one of the main sponsors of Ireland's GAA
Football Championship for the 2009 Summer.
• Vodafone McLaren Mercedes Formula One team, title sponsor
• New Zealand Warriors – An NRL Rugby League team
• UEFA Champions League from the 2006/7 season
• Port Adelaide Football Club Australian rules football team, joint major sponsor since
1997
• North Melbourne Football Club Australian rules football team, joint major sponsor
since 2008
• Romania National Football Team, major sponsor from 2006
• St Kilda Football Club Australian rules football team, joint major sponsor from 2007
• Vodafone Arena (Rosenholm) multisport arena in Karlskrona, Sweden (since 2005)
• Wellington Lions – New Zealand rugby union team
• West Coast Eagles, Australian rules football team, elite sponsor since March 2006
• Triple 8 Race Engineering, V8 Supercars team, primary sponsor (since 2007)
• Olympiakos, Greek football team
• Newbury R.F.C., Newbury Rugby Club
• Newbury Comedy Festival
• Newbury Buses
• Home-Start International worldwide family support charity
• Al Ahly, Egyptian Club football team
• UCD Ents, the Entertainments Division of UCD Students' Union – primary sponsor
(since 2007)
• Penske Racing - Primary sponsorship of the #12 NASCAR Nationwide Series, Grand-
Am Rolex Sports Car Series, and Indy Racing League IndyCar Series cars entries. A
Page | 24
 Associate sponsorship of the #3 and #6 Dallara-Honda IndyCar Series. All are
through the Cellco Partners venture with Verizon. This sponsorship was moved from
the NASCAR Sprint Cup Series because their purchase of Alltel broke NASCAR's
grandfather clause prohibiting wireless telephone companies from advertising in the
NASCAR Sprint Cup Series, and was split among all other racing efforts.

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.

Subsidiaries:

Networks where Vodafone Group owns a majority holding. These networks are branded
Vodafone.

Network
Ownership Customers Rank Main Local
Country Name Local Website
Competitor
(former)

Albania Vodafone 99.9% 1,127,000 2/2 www.vodafone.al AMC

Czech Vodafone O2, T-Mobile,
100% 2,658,000 3/4 www.vodafone.cz
Republic (Oskar) U:fon
Vodafone 33,920,00 T-Mobile, E-
Germany 100% 2/4 www.vodafone.de
(D2) 0 Plus, O2
Vodafone Cosmote, Wind,
Greece 99.9% 5,438,000 2/4 www.vodafone.gr
(Panafon) Q-Telecom
Vodafone
T-Mobile,
Hungary (AirTouch 100% 2,304,000 3/3 www.vodafone.hu
Pannon
- Primatel)
Vodafone O2, Meteor, 3,
Ireland 100% 2,265,000 1/4 www.vodafone.ie
(Eircell) Tesco Mobile
Vodafone 22,791,00
Italy 76.86% 2/4 www.vodafone.it TIM, Wind, 3
(Omnitel) 0
Vodafone www.vodafone.com
Malta 100% 201,000 1/2 GO mobile
(Telecell) .mt
Vodafone
Netherlands 99.9% 4,038,000 3/3 www.vodafone.nl KPN, T-Mobile
(Libertel)
Northern KKTC www.kktctelsim.co
100% 104,000 2/2 KKTCell
Cyprus Telsim2 m
Portugal Vodafone 100% 5,111,000 2/3 www.vodafone.pt TMN, Optimus
Page | 25
 (Telecel)
Orange,
Vodafone
Romania 100% 8,808,000 2/4 www.vodafone.ro Cosmote, Zapp
(Connex)
Mobile
Vodafone 15,810,00 movistar,
Spain 100% 2/4 www.vodafone.es
(Airtel) 0 Orange, Yoigo
Vodafone 16,116,00 www.vodafone.com
Turkey 100% 2/3 Turkcell, Avea
(Telsim) 0 .tr
O2, T-Mobile,
United 18,447,00 www.vodafone.co.u Virgin Media
Vodafone 100% 2/5
Kingdom 0 k (Mobile), 3,
Orange

Asia-Pacific

www.vodafone.com
Australia Vodafone 50% 6,000,000 27% 3/3 Telstra, Optus
.au
AirTel,BSNL
Mobile,
Vodafone 44,126,24 Reliance,
India 52% 22.93% 3/9 www.vodafone.in
(Hutch) 3 MTNL, Idea,
Aircel TATA
DOCOMO
Vodafone
www.vodafone.co.n Telecom,
New Zealand (BellSout 100% 2,309,000 52.3% 1/2
z TelstraClear
h)

Middle East and Africa

DR Congo Vodacom 25.5%3 4

49% 1/? www.vodacom.cd Celtel, Tigo
Vodafone
13,333,00 Mobinil,
Egypt (Click 55% 44.3% 2/3 www.vodafone.com.eg
0 Etisalat
GSM)
Vodafone
(Ghana MTN, Tigo,
Ghana 70% 1,400,000 17% 3/6 www.vodafone.com.gh
Telecom, Zain
onetouch)
Econet
Lesotho Vodacom 44.15%3 4
80% 1/2 www.vodacom.co.ls
Wireless
Mozambique Vodacom 49%3 4
40% 2/2 www.vm.co.mz mCel
Qatar Vodafone5 22.95% 0% 2/2 www.vodafone.com.qa Qtel
16,521,00
South Africa Vodacom 65% 52.6% 1/3 www.vodacom.co.za MTN, Cell C
0
Tanzania Vodacom 32.5%3 4
46% 1/4 www.vodacom.co.tz Celtel, Tigo
1
The number of customers are presented on a controlled (fully consolidated) and jointly controlled
(proportionately consolidated) basis in accordance with Vodafone's current segments, as at 31 December
2007
Page | 26
2
Due to exclusive partnership agreements with CYTA that covers the entire island of Cyprus, Vodafone
cannot market its services under the Vodafone brand in northern Cyprus.
3
Approximate percentage only. Stakes held through majority-owned Vodacom group
4
Customer numbers for South Africa includes customers from DR Congo, Lesotho, Mozambique, and
Tanzania.
5
Although not majority-owned by the group, Vodafone has full management control.

Affiliates

Networks where Vodafone Group owns a minority holding. Some of these networks offer
Vodafone-branded products.

Network Main
Name Market Local
Country Ownership Rank Local Website
(former) Share Competi
tor
Orange,
Bouygue
France SFR 43.9% 36% 2/3 www.sfr.fr
s
Télécom
Plus Orange,
Poland 24.4% 32.3% 2/4 www.plusgsm.pl
GSM Play, Era
China www.chinamobile.co China
China 3.4% 70% 1/2
Mobile m Unicom
Vodafon
Fiji 49% 100% 1/2 www.vodafone.com.fj Digicel
e
BSNL
Mobile,
India Airtel 4.4% 23.4% 1/9 www.airtel.in
Reliance
,

Celtel,
Telko
Kenya Safaricom 35% 81% 1/3 www.safaricom.co.ke
m
Kenya

AT&T,
Sprint,
United Verizon www.verizonwireless.co
45% 31.7% 1/6 T-
States Wireless m
Mobile
,

Partner Networks

Page | 27
Partner Networks are networks that cooperates with Vodafone. This arrangement does not
involve any equity transactions. It allows the Vodafone brand to be extended to markets
where the Vodafone does not own a local company. Products resulting from this agreement
are marketed using dual brand formula, wherein the Vodafone is put after the local brand.

Country Network
Market Main Local
/Region/ Name Rank Local Website
Share Competitor
Territory (former)

mobilkom T-Mobile, One,

Austria 42.5% 1/4 www.a1.net
Austria 3
Belgium Proximus 48.7% 1/3 www.proximus.be Base, Mobistar
GloBul,
Bulgaria Mobiltel 50% 1/4 www.mtel.bg
Vivatel
T-Mobile,
Croatia VIPnet 42.2% 2/3 www.vipnet.hr
Tele2
Cytamobile
Cyprus 81% 1/2 www.cytamobile.com MTN
-Vodafone
Sonofon, Telia,
Denmark TDC Mobil 41.4% 1/4 www.tdc.dk
3
Estonia Elisa Oyj ?% 1/3 www.elisa.ee Tele2, EMT
Faroe
Vodafone 30% 2/2 www.vodafone.fo
Islands
Finland Elisa Oyj 30% 1/3 www.elisa.fi Sonera, Finnet
Airtel-
Guernsey ?% ? www.airtel-vodafone.gg Wave, Sure
Vodafone
Síminn, TAL,
Iceland Vodafone 38% 2/2 www.vodafone.is
HIVE
Airtel- Jersey
Jersey ?% ? www.airtel-vodafone.je
Vodafone Telecom, Sure
LMT
Latvia Bitė Latvija ?% 3/3 www.bite.lv
GSM,Tele2
Bitė
Lithuania 21.6% 3/3 www.bite.lt Tele2, Omnitel
Lietuva
LuxGSM,
Luxembourg Tango 32% 2/4 www.tango.lu
VOXmobile
VIP T-Mobile,
Macedonia 10.7% 3/3 www.vip.com.mk
Operator Cosmofon
Telenor,
Norway TDC ?% ? www.tdc.no
NetCom
Vimpelcom,
Russia MTS 34% 1/3 www.mts.ru
Megafon
Serbia Vip mobile 9.1% 3/3 www.vipmobile.rs mt:s, Telenor
Mobitel,
Slovenia Si.mobil 27.7% 2/4 www.simobil.si
Tušmobil

Page | 28
Sweden Telenor 16% 3/4 www.telenor.se Telia, Tele2, 3
Orange,
Switzerland Swisscom 62% 1/3 www.swisscom-mobile.ch
sunrise, Tele2
Vimpelcom,
Ukraine MTS 33% 2/5 www.mts.com.ua
Kyivstar

Asia-Pacific

MTN, Afghan
Afghanistan Roshan 34.8% 1/4 www.roshan.af Wireless,
Etisalat
Vivacell-
Armenia 79% 1/2 www.mts.am Vimpelcom
MTS
Azercell,
Azerbaijan Azerfon 3/3 www.azerfon.az
Bakcell
3, Peoples,
SmarTone
Hong Kong 11% 5/5 www.smartone-vodafone.com CSL, New
Vodafone
World, PCCW
NTT DoCoMo,
Japan Softbank 3/4 mb.softbank.jp
17.71 KDDI
Maxis
Malaysia Celcom 31% 2/3 www.celcom.com.my Communicatio
ns, Digi
Samoatel
Samoa Digicel 78.57 1/2 www.digicelsamoa.com
mobile
SingTel,
Singapore M1 28.3% 3/3 www.m1.com.sg
StarHub
Tigo, Mobitel,
Sri Lanka Dialog 53% 1/4 www.dialog.lk
Hutch
Thailand dtac 30% 2/4 www.dtac.co.th AIS,TRUE
Turkmenista
MTS 87% 1/? www.mts.tm
n
Uzbekistan MTS 46% 1/? www.mts.uz

Middle East and Africa

Zain
Bahrain (MTC- 40% 2/2 www.bh.zain.com Batelco
Vodafone)
UAE du 26% 2/2 www.du.ae Etisalat

Americas

Anguilla Digicel ? ?/? www.digicelanguilla.com Cable &

Page | 29
 Wireless
Cable &
Antigua and www.digicelantiguaandbarbuda.
Digicel ? ? Wireless,
Barbuda com
APUA
Aruba Digicel ? ?/? www.digicelaruba.com SETAR GSM
Cable &
Barbados Digicel ? ? www.digicelbarbados.com
Wireless
Bermuda Digicel ? ? www.digicelbermuda.com M3 Wireless
Bonaire Digicel ?% ?/? www.digicelbonaire.com
Cayman Cable &
Digicel ?% ?/? www.digicel.ky
Islands Wireless
Chile Entel PCS 38.8% 2/4 www.entelpcs.cl movistar, Claro
Curaçao Digicel ?% ?/? www.digicelcuracao.com
Cable &
Dominica Digicel ? ? www.digiceldominica.com
Wireless
French
Guiana Digicel
(Bouygues ? ? www.digicel.fr Orange SA
Guadeloupe
Télécom)
Martinique
Cable &
Grenada Digicel ? ? www.digicelgrenada.com
Wireless
Guyana Digicel ? ? www.digicelguyana.com GT&T
Haiti Digicel 65% 1/? www.digicelhaiti.com Voila
Honduras Digicel ? ? www.digicel.hn
bmobile,
Jamaica Digicel 75% 1/3 www.digiceljamaica.com
Miphone
Panama Digicel ? ? www.digicelpanama.com
St Kitts and www.digicelstkittsandnevis.co Cable &
Digicel ? ?
Nevis m Wireless
Cable &
St Lucia Digicel ? ? www.digicelstlucia.com
Wireless
St Vincent
Cable &
and the Digicel ? ? www.digicelsvg.com
Wireless
Grenadines
Trinidad and
Digicel ? ? www.digiceltt.com TSTT
Tobago
Turks and Cable &
Digicel ?% ?/? www.digiceltci.com
Caicos Wireless

It's Vodafone Essar! Ruias have $5 bn exit option

British giant Vodafone and Indian conglomerate Essar group reached an agreement on
Thursday for jointly running India's fourth largest mobile firm -- Hutch-Essar, which would
be rechristened Vodafone Essar.

The two companies said in a joint statement that they have agreed on partnership terms for
Hutchison Essar, in which Vodafone is acquiring 67 per cent stake from Hong Kong's
Page | 30
Hutchison Telecom International Ltd while Essar would continue to retain its 33 per cent
stake.

"The partners have agreed that Hutchison Essar will be renamed Vodafone Essar and in due
course the business will market its products and services under the Vodafone brand," it said.

Under the terms of the partnership, Vodafone will have operational control of Vodafone
Essar and Essar will have rights consistent with its shareholding, including proportionate
Board representation.

Ravi Ruia will be appointed chairman of Vodafone Essar and Arun Sarin will be vice
chairman.

Under the partnership terms, Essar will have an option to sell its 33 per cent stake to
Vodafone for $5 billion between the third and fourth years or an option to sell between $1
billion and $5 billion worth of Vodafone Essar shares to Vodafone at an independently
appraised fair market trading value.

Earlier during the day, Sarin and Ruia had met Telecom Minister Dayanidhi Maran and had
briefed him about future plans of their joint venture.

Sarin had also struck an optimistic note about signing a deal with Essar for jointly running
India's fourth largest mobile firm, to be called Vodafone Essar.

"..Hopefully that is something we might be doing here," Sarin had told reporters.

Last month, the UK giant had clinched a deal to acquire 67 per cent controlling stake in
Hutch-Essar from Hong Kong based Hutchison Telecom International Limited.

Sarin is expected to fly to Mumbai on Thursday evening, where the Ruias are hosting a
dinner for the India born CEO of the British firm.

Vodafone, Essar press statement

Following is the statement issued by Vodafone and Hutch on the partnership agreement:

Vodafone and Essar have reached an agreement under which they will work to continue the
growth of Hutchison Essar Limited ("Hutchison Essar"), one of India's leading mobile
operators.

This follows Vodafone's announcement on 11 February 2007 that it had agreed to acquire
Hutchison Telecommunications International Limited's ("HTIL") controlling interest in
Hutchison Essar, in which Essar is and will continue to be a 33% shareholder.

The partners have agreed that Hutchison Essar will be renamed Vodafone Essar and, in due
course, that the business will market its products and services under the Vodafone brand.

Page | 31
With penetration levels of around 13%, both partners believe that there are substantial growth
opportunities in the Indian mobile telecommunications market. Vodafone is the leading
international mobile operator with an extensive range of products and services, many of
which are not currently available in India.

Essar is a major industrial group with a deep understanding of India and the Indian mobile
telecommunications industry.

With these complementary strengths Vodafone and Essar plan to broaden Vodafone Essar's
service offering and enable it to become the leader in the Indian mobile telephony market.

Commenting on the new partnership, Arun Sarin, Chief Executive of Vodafone said: "I am
delighted that Essar and Vodafone have agreed the terms of an ongoing partnership. Essar
has played a key role in transforming this business into a leading Indian mobile operator. We
look forward to leveraging this experience and working with our partner as the company
enters its next phase of growth in the attractive Indian telecommunications market. We will
be bringing the relevant range of Vodafone products and services to the Indian consumer."

Ravi Ruia, Vice Chairman of Essar, added: "It is terrific that we are joining with the world's
leading international mobile company. I welcome them as our partner into this successful
business which we will now take forward to the next level. Essar was a founding partner in
Hutchison Essar and played an active role in building the company, including extending
network coverage into several profitable regional markets. By partnering with Vodafone we
expect to create further value in the business."

Under the terms of the partnership, Vodafone will have operational control of Vodafone
Essar and Essar will have rights consistent with its shareholding, including proportionate
Board representation. Ravi Ruia will be appointed by Vodafone as Chairman of Vodafone
Essar and Arun Sarin will be appointed by Essar as Vice Chairman.

Essar will have certain liquidity rights including, between the third and fourth anniversaries
of completion, and subject to regulatory requirements, an option to sell its 33% shareholding
in Vodafone Essar to Vodafone for US$5 billion or an option to sell between US$1 billion
and US$5 billion worth of Vodafone Essar shares to Vodafone at an independently appraised
fair market trading value.

Vodafone expects to complete the acquisition of HTIL's interest in Hutchison Essar in the
coming weeks.

Page | 32
Vodafone wins Hutch-Essar for $19 bn
New Delhi: The long-drawn ‘bid battle’ for Hutch-Essar finally came to an end on Sunday as
UK telecom giant Vodafone acquired India's fourth largest mobile venture for an estimated
enterprise value of US $19 billion (Rs 85,000 crores).

Essar welcomed the offer and said it is indeed “good price” for the company.

“This is a good price, which reflects the premier position of Hutchison Essar as India's
leading operator. Essar owns 33 per cent of the company and we are delighted that Hutchison
and Essar have together created this value,” said the company in a statemnt.

Sources told CNN-IBN that Vodaphone has offered Essar to become a partner firm. The
board is evaluating the option and is likely to appear with a decision shortly. “We have been
offered by Vodafone to be their partner. We are at the moment evaluating all our options in
the best interest of the Group,” said Essar in a statement.

Vodafone, the world’s largest mobile phone group by revenue, emerged winner at the
Hutchison Telecom Ltd's Board Meeting at Hong Kong convened for considering the four
bids for its 67 per cent stake put on the block late in 2006.

Essar, a conglomerate, that owns 33 per cent of Hutchison-Essar Limited has 21 days time to
decide on whether to exercise its RoFR (matching the top bid) or the tag-along right (to sell
its 33 per cent stake in the venture).

The company’s India operations expects reaching out to 180 million mobile phone users by
end-2007, up more than 25 per cent from 143 million now.

Hutchison Telecom first announced in December last year that it had been approached by
various bidders for acquisition of its stake in the Indian venture.

This was followed by announcements by Vodafone, Reliance Communications, Essar Group

and Hindujas expressing their interest in the acquisition.

Page | 33
Vodafone's ZooZoos, stars of IPL ad breaks

Vodafone has given birth to ZooZoo a special character created specifically to convey value
added service (VAS).Meet the Zoo zoos, the stick-like figures with egg-like heads that
appear in TV ads for Vodafone and have become all the rage in India.
So much so that the Vodafone plans to air 25 to 30 different commercials featuring the Zoo
zoos during the Indian Premier League’s (IPL) Twenty20 cricket series seems like a strategic
masterstroke, although it is likely to come as a surprise to viewers that the ads aren’t
animated—there are really people inside those Zoo zoo costumes.
But this much is known: Zoo zoo is definitely anthropomorphic, and was created by the
creative team at Ogilvy and Mather (O&M) India. The ads, 13 of which have been aired until
now, have become popular with viewers. So much so that one of them, an ad for beauty tips
over the phone, was viewed 13,000 times last week on YouTube. The Zoo zoos have also
taken Facebook by storm. They have nearly 35,000 friends.
“With approximately 300 seconds of media being spent each day (on IPL), we had to figure
out a way to communicate as many services as possible in a way that would not cheese off
the customer,” said Harit Nagpal, director (marketing and new business) at Vodafone Essar
Ltd.

Page | 34
Each of the 30 ads will promote a different value-added service on offer by Vodafone, from

maps to stock alerts.

RECHARGE CARDS

Page | 35
Recharge cards
MRP (Rs) Access Fee (Rs) Talktime Validity (days) Equivalent mins.
10 2.00 7.07 0 6.37
15* 13.45 0.00 0 0.00
20 2.00 16.13 0 14.53
21* 18.62 0.00 0 0.00
25 22.6 0 0 0
30 2.00 25.20 0 22.70
31* 28.06 0.00 0 0.00
33* 29.44 0.00 0 0.00
39* 34.85 0.00 0 0.00
46* 41.21 0.00 0 0.00
47* 42.20 0.00 0 0.00
48 40.51 3.01 Lifetime 2.71
49* 44.37 0.00 0 0.00
55 2.00 47.86 0 43.12
110 2.00 97.73 0 88.05
149* 134.99 0.00 0 0.00
199 2.00 178.41 0 160.73
298* 270.07 0.00 0 0.00
549* 497.33 0.00 0 0.00
599 0.00 543.05 365 days 489.23
2500* 2266.22 0.00 0 0.00
2599* 2355.96 0.00 0 0.00

Average rate calculation

Type of call rate (Rs / min) % of distribution of MOU Rate (Rs / min) Effective rate
Local Mobile-to-Mobile 59% 1.00 0.59
Local – Fixed 20% 1.00 0.20
STD – Mobile-to-Mobile 14% 1.5 0.21
STD – Fixed 7% 1.5 0.11
Average rate 1.11 0.11

* Bonus cards
15 : 60 local V2V mins, to be used btw 11 pm & 8 am. Mins to be used within 30 days of
recharge

21 : All local vodafone to vodafone calls @ 20p/min for one selected vodafone number for 30
days

25 : 125 local V2V mins, to be used btw 11 pm & 8 am. Mins to be used within 30 days of
recharge

31 : All STD calls at Re 1/min for 30 days Page | 36

33 : 200 local V2V mins, to be used btw 11 pm & 8 am. Mins to be used within 30 days of
recharge
46 : 300 local V2V mins, to be used btw 11 pm & 8 am. Mins to be used within 30 days of
recharge

49 : Local SMS @ 2 p for 30 days

O&M creates ‘ZooZoos’ for Vodafone
47 : US/Canada calls@Rs2.99/min,Gulf calls@6.99/min&UK,Europe/Australia/Newzealand
Fixed@2.99/min & SEA @3.20/min - to be used in 2 days

149 : US/Canada calls @ Rs.5.25/min+All STD Calls @ Re1/min - to be used in 60 days

298 : Gulf Calls @ Rs.6.99/min - to be used in 60 days

549 : USA/Canada calls @Rs3.99/min,UK Fixed & SEA call

@Rs4.20/min,Japans@Rs5.50/min,China @Rs2.50/min - to be used in 90 days

2500 : US/Canada calls @ Rs.1.99/min,South East Asia @ Rs4.20/min + All STD calls @ Re
1/min - to be used in 270 days

2599 : Call UAE @ Rs 6/min and Rest of Gulf @ Rs8/min with 6sec pulse + All STD calls @
Re 1/min - to be used in 270 days
After the famous pug, O&M has now created a new set of characters called ‘ZooZoos’ for the
latest Vodafone campaign featuring value added services. The spots were launched during
the ongoing IPL series.

The agency was tasked to leverage the IPL 2 to communicate the wide range of products and
services from Vodafone while building a consistent brand story.

Explaining the idea behind the campaign, Rajiv Rao, executive creative director, O&M says,
“We created a special world in which all the product stories get told. A world which is real
yet different, strange yet simple, warm and lovable. All the specific product stories and
services get told in this world of Zoozoos, making the messages more charming.”

One of the most interesting facts about this campaign is that even though the ZooZoo
characters look animated, they have been played by real people dressed in a white attire.
Reveals director Prakash Varma of Nirvana films, “Animation requires so much detailing and
here we had to do the exact opposite. We had to make real characters look like animated
characters. It was quite challenging as none of them could see as they were covered from
head to feet. The set, including all the props, is in the form of shadows created by spray
painting.”

The media mix for the campaign includes television, print, outdoor, radio activation and
online. There is a ZooZoo community on Facebook which has around 3183 fans and which
features all the ZooZoo commercials that have been released so far, ZooZoo emoticons and
‘Tag me’ application.

Vodafone Trims Down Base Tariff On Local & STD Calls

Page | 37
Vodafone, India’s second largest telecom operator, has reduced base tariff on its local and
STD call charges in Bihar and Jharkhand. The new base tariff for local call is 50 paisa per
minute, whereas for STD it is Rs.1 per minute.

The new base tariffs will be applicable to all new as well as existing Vodafone subscribers
irrespective of their current plan. The subsisting users don’t have to buy any additional
voucher or bonus card.

Vodafone has also launched two new STD bonus cards for its prepaid subscribers in Bihar
and Jharkhand. These two bonus cards - Regional STD Bonus Card and All India STD Bonus
Card allow STD calls at 50 paisa per minute in a predefined region. Both bonus cards are
valid for a period of 30 days.

The Regional STD Bonus Card costs Rs 24 and it enables the Vodafone customer to make
STD calls at 50 paisa per minute to the bordering states of Uttar Pradesh, Orissa, West
Bengal, Assam and the North East. The All India STD Bonus Card is available for Rs 49 and
allows user to call anywhere in India at 50 paisa per minute

TARRIF OFFERS

1.Friends and Family

Page | 38
Keep in touch with your Family & Friends at just 20p / min . You can include up to 10
Vodafone AP numbers in your list of family & friends.
To activate, Recharge with Rs 21 & send FFA <10 digit Vodafone AP number> to 144 (toll-
free).
Note: FFA <10 digit Vodafone AP number> to 144 (toll-free) should be sent after a
confirmation SMS, sent by us, is received. This confirmation SMS should reach you within 1
hour of recharging with Rs 21

2.STD goes Local

Recharge with Rs 54 and make STD calls to any phone in India @ Re 1 / min. This offer is
valid for a period of 30 days.

3.Call @ 60p

Make calls to any local phone in Andhra Pradesh at just 60p / min, by recharging with Rs 39.

4. South STD @ 50p/min

Recharge with 38 & make all STD Calls to Kerala, TN & Karnataka @ 50p/min for 30 Days.

Page | 39
5. STD @ 50p/min to metros

Recharge with 26 & make all STD Calls to Delhi, Mumbai, Kolkata & Chennai @ 50p/min
for 30 Days

6.Talk @ 20 p/min with Vodafone Friends Circle

Now talk @ 20 p/min with Vodafone Friends circle. You can add a maximum of 10 numbers
to your friends circle.
To know more, sms FRIENDS to 144 (toll free)
Charges: Rental - Re 1/ day or Recharge with Bonus Card 21 Number change - Rs 5 per no
Note: Applicable only on local Vodafone to Vodafone calls.

BONUS CARDS

1.All local calls @ 60p/mins for a year

Page | 40
Buy a Bonus Card worth Rs 59 and make all local calls @ 60p / min

2. SMS promo packs

Rs 30 SMS Promo Pack Get 100 local SMS for 1 month at Rs 30. To activate, SMS ACT
SMS30 to 111 (toll free)

Note:
The promo pack is valid 30 days from the date of subscription


You can subscribe to this SMS Promo Pack only once.

Chota SMS Promo Pack Pay a monthly rental of Rs 10 and get 25 free local SMS. Validity is
1 month from date of activation. To activate, SMS CSMS to 111 (toll free)
SMS Card @ Rs 49 Recharge with an SMS Card worth Rs 49 and get local SMS @ 2p for 30
days.

3. Apne minutes

Page | 41
You can now enjoy free local calls to local Vodafone mobile phones from 11 pm to 8 am. All
you need to do is just recharge with Rs 15 or 25 or Rs 33 or Rs 46.

 Buy a recharge voucher worth Rs. 15 and get 60 free local Vodafone to Vodafone
minutes, to be used in 30 days
 Buy a recharge voucher worth Rs. 25 and get 125 free local Vodafone to Vodafone
minutes, to be used in 30 days
 Buy a recharge voucher worth Rs. 33 and get 200 free local Vodafone to Vodafone
minutes, to be used in 30 days
 Buy a recharge voucher worth Rs. 46 and get 300 free local Vodafone to Vodafone
minutes, to be used in 30 days

4.SMS @ 10p

Now get all local SMS @ 10p / SMS Recharge with Rs 34 Bonus Card to get 340 local SMS
valid for 30 days.

Page | 42
BIBLOGRAPHY

1. Wikipedia
2. Vodafone.com
3. The Times Of India
4. Economic Times

Page | 43