VODAFONE

Vodafone

Vodafone

Introduction of Vodafone

Vodafone started its mobile network business in the UK by the name of Mercury Communications mobile phone operation. By the end of 1999, Mercury was re-banded to One2One communication network and was acquired by Deutsche Telekom. In June 2002, One2One was already operated under Vodafone brand name and has launched its first MMS picture messaging services in the UK. By the year 2003, Vodafone also started 3G UMTS service in the United Kingdom. With the rapid development taking place in the telecommunications industry, Vodafone reacted by moving in to new markets (Hynson, 2000, pp. 110).

Company Performance

The revenue of the company that has been reported for the fiscal year ended on March 2009 is £ 41,017 million. The company has recorded the increase of 15 to 16% in its revenues for the past few years since 2008. For the year 2009, the operating profit of Vodafone was recorded to be £ 5,587 million. According to this figure, the revenues for the year 2009 decreased to 41.7% in comparison to the year 2008. However, the profit for the fiscal year 2009 stood at £ 3078 million that is considered to be a decrease of 53.78% in comparison to the year 2008.

The impact of the global crisis on the European mobile operators is clearly evident: both voice revenues and services revenues are highly correlated with a nominal growth of GDP in the region. Furthermore, even recovery of the economy did not result in the revenue growth in the voice segment. This implies that consumer confidence is still low and many clients try to spend less money on the additional services. The impact of the slowdown on the telecommunication business differs in each country, but the general trend of high correlation of the telecom market and GDP growth is clearly evident.

For an attempt to continue the expansion, Vodafone has taken steps to keep the business profitable by moving to newer markets such the South East Asian countries of India and Pakistan. The Ministry of Communications and Information Technology drafted the master plan for communications in June 2000 in coordination with the private sector, where the plan sets parameters of the strategic directions in the areas of economics and business, services, and technical issues related, as well as setting the framework for work on the infrastructure of the telecommunications sector in UK.

MacroEconomic Analysis of UK

Market economy of the United Kingdom is one of the largest markets in the Europe. After Germany, France and Italy, it is the fourth largest market . If we talk about the world market, the UK market economy is ranked number seventh. The government of UK has privatatized a number of state enterprises and welfare states in the past two decades. Banking and insurance sectors has the largest share of GDP within the UK service industries. On a global scale, the United Kingdom has played a significant role in terms of production. One of its significant contributions include 4% of the total world oil production in ...