Competition
and Policy in
Regional Australia
Dan Lloyd
Director , Strategy &
Corporate Affairs
•£44BN
in capital expenditure
•£14BN
on spectrum
Substantial global investments in capital
expenditure and spectrum
2
Investments made across challenging and
competitive markets
33
Vodafone India – points of distribution expanded from only
...
Key role in defining LTE standards, and driving
4G LTE adoption
4
Leading efficient investment partnerships
• Spain & Czech Republic, 3G reciprocal roaming
• India:
– Indus Towers, 112,000...
Australia is a very unusual market in
revenue share ...
6
Canada Germany AustraliaFrance
66%
51%
Spain
52%51%
UK Italy
49%...
Australia is a very unusual market in
EBITDA share ...
7
UK Spain AustraliaFrance
75%
61%
Italy
68%
57%
Canada Germany
55%...
Australia is a very unusual market in
Operating Free Cash Flow share
8
UK Spain AustraliaItaly
85%
65%
France
79%
63%
Cana...
Substantial impact on consumers...
9
0
20
40
60
80
100
120
140
160
180
Canada
€49
Germany
€ 68
UK
€ 65
France
€ 65
Austral...
Mobile regarded as more
important than fixed
10
Regional consumers:
Which is MOST important
52%
MobileFixed
48%
64%
Region...
of regional consumers agreed
that being able to choose their
mobile provider is important
83%
of regional consumers agreed...
12
regional consumers believe the Federal
Government $100m black-spot program
should be used to deliver a mobile
solution ...
Conclusions
• Not seeking more regulation, seeking better regulation
• Seeking recognition of the structural barriers to i...
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Vodafone's Dan Lloyd at CommsDay Summit 2014

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Vodafone's Dan Lloyd at CommsDay Summit 2014

  1. 1. Competition and Policy in Regional Australia Dan Lloyd Director , Strategy & Corporate Affairs
  2. 2. •£44BN in capital expenditure •£14BN on spectrum Substantial global investments in capital expenditure and spectrum 2
  3. 3. Investments made across challenging and competitive markets 33 Vodafone India – points of distribution expanded from only 434,000 to 1,250,000
  4. 4. Key role in defining LTE standards, and driving 4G LTE adoption 4
  5. 5. Leading efficient investment partnerships • Spain & Czech Republic, 3G reciprocal roaming • India: – Indus Towers, 112,000 towers, 232,000 tenancies. – 2G National Roaming – largest wholesale roaming provider – 3G National Roaming with Bharti and Idea • South Africa, New Zealand, Egypt – National roaming provision • UK single-grid with Telefonica 5
  6. 6. Australia is a very unusual market in revenue share ... 6 Canada Germany AustraliaFrance 66% 51% Spain 52%51% UK Italy 49% 39% 31% Incumbent share of Total Telecoms Revenue 2013, % Source: Vodafone Group Analysis based on company reports.
  7. 7. Australia is a very unusual market in EBITDA share ... 7 UK Spain AustraliaFrance 75% 61% Italy 68% 57% Canada Germany 55% 43% 37% Incumbent share of Total Telecoms EBITDA 2013, % Source: Vodafone Group Analysis based on company reports.
  8. 8. Australia is a very unusual market in Operating Free Cash Flow share 8 UK Spain AustraliaItaly 85% 65% France 79% 63% Canada Germany 62% 48% 35% Incumbent share of Total Telecoms OFCF 2013, % Source: Vodafone Group Analysis based on company reports.
  9. 9. Substantial impact on consumers... 9 0 20 40 60 80 100 120 140 160 180 Canada €49 Germany € 68 UK € 65 France € 65 Australia € 164 Spain € 103 Italy € 85 Euro/Pop International benchmarking OFCF / Population 2013, Euro OFCF/BITDA minus Capex. Source: Vodafone Group Analysis based on company reports.
  10. 10. Mobile regarded as more important than fixed 10 Regional consumers: Which is MOST important 52% MobileFixed 48% 64% Regional consumers agree that mobiles will be more essential than fixed line in the next 5-10 years Yet $200m a year USO goes towards proprietary fixed infrastructure Source: Empirica
  11. 11. of regional consumers agreed that being able to choose their mobile provider is important 83% of regional consumers agreed that they would change providers if another provider offered the same or better coverage 59% What do regional consumers want?
  12. 12. 12 regional consumers believe the Federal Government $100m black-spot program should be used to deliver a mobile solution for customers of ALL providers. regional consumers believed it was very/extremely important that Government funding should be provided to both fixed and mobile coverage. 77% Consumers resent lack of choice ‘...it’s like being held to ransom.’ ‘I want competition...’ Source:Empirica research What do regional consumers want?
  13. 13. Conclusions • Not seeking more regulation, seeking better regulation • Seeking recognition of the structural barriers to investment and competition not only in fixed, but in regional mobile • Reconsideration of policies which subsidise, entrench advantages and protect from competition • Backhaul priced above cost maintains a substantial barrier to competition • NBN presents great opportunities in backhaul and regional mobile • Serious commercial discussion about how to invest to deliver choice and competition 13
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