Vodafone Group plc is a British multinational telecommunications
company headquartered in London and with its registered office
in Newbury, Berkshire. It is the world's third-largest mobile
telecommunications company measured by both subscribers and 2013
revenues and had 453 million subscribers as of June 2013.
Vodafone has a primary listing on the London Stock Exchange and is a
constituent of the FTSE 100 Index. It had a market capitalisation of
approximately £89.1 billion as of 6 July 2012, the third-largest of any
company listed on the London Stock Exchange. It has a secondary listing
The name Vodafone comes from voice data fone, chosen by the company to
"reflect the provision of voice and data services over mobile phones"
The first of these occurred on 29th June 1999 when
Vodafone completed its purchase of AirTouch
Communications, Inc. of Germany and changed its
name to Vodafone Airtouch plc.
On 21st September 1999 Vodafone agreed to merge its
U.S. wireless assets with those of Bell Atlantic Corp to
form Verizon Wireless
Acquisitions also continued and in 2001 Vodafone takes
over Eircell (part of eircom) in Ireland, rebranding the
company Vodafon Ireland. A year later Vodafone acquired
Japan's third-largest mobile operator J-Phone, which was
the first operator to introduce camera phones in Japan.
A major shift came on 17th December 2001 where Vodafone
introduces the concept of 'Partner Networks' by signing
TDC Mobil of Denmark.
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.
In November 1998 Vodafone purchased BellSouth New
Zealand which later became re-branded as Vodafone
On 15 November 2004, Vodafone Group announced a
group-wide co-operation agreement with América
Móvil of Mexico. The agreement involves co-operation
on international services and roaming.
On 26th March 2004, Vodafone acquires a 67% stake in
Hutchison Essar for $10.7 billion. The company is
renamed Vodafone Essar. 'Hutch' is rebranded to
Changes in organizational structure can result from a merger or
acquisition, economic changes and process changes. These
changes are usually initiated due to the organization‘s desire to
reduce costs, improve processes or increase communications.
After a merger or acquisition takes place, the company may
have to reorganize in order to avoid duplication of processes
and maximize the strengths of both organizations.
Mergers and acquisitions usually require one
organization to absorb the employees and processes of the
High Level of Centralisation: Vodafone board
remained as the ultimate decision maker. Merged and
Acquired companies will not enjoy any legal power.
In 2010, 3G and 4G telecom spectrum were auctioned in a highly
competitive bidding. The winners were awarded spectrum in
September, and Tata Docomo was the first private operator to
launch 3G services in India.
The private companies which participated in the auction were:
Vodafone Essar (now Vodafone India)
• Vodafone is owned jointly by Vodafone and Essar
whereas Airtel is owned by Bharti Airtel
• Airtel has presence in all 23 telecom sectors whereas
Vodafone has presence in 16 circles only
• Airtel has a much bigger customer base than
• Airtel relies on celebrities to promote its services
whereas Vodafone has a smaller budget and makes use
of animated characters (zoozoos).
• Airtel offers a number of products and services while
Vodafone is mainly involved with mobile telephony
Operator group Vodafone has seen a 90 per cent year on year drop in
profit for the full year ended March 2013.
The operator posted a profit of just £673m, down from £7bn a year
earlier, hit hard by a £7.7bn impairment charge in Italy and Spain over
the course of the year.
Group revenue also fell by 4.2 per cent to £44.4bn while full year
organic service revenues declined by 1.9 per cent.
The Indian arm of Vodafone Group Plc, the world's largest private
mobile phone company, has recorded a £9-million operating loss for
the first six months of the fiscal ended March as payments on debt
raised to get 3G licences and corresponding network expansion kicked
Vodafone has had a horror run over the past 18 months, with a record
number of complaints about its service and the loss of about 375,000
Moody's affirms Vodafone's A3 ratings; less stable outlook
Sales: The Vodafone sales teams and resale channel partners were used
to selling mobile tariff plans and calling options. The language of web-
conferencing services, however, was new to them. As a result, Cisco
IBSG educated Vodafone’s sales staff on the new vocabulary and
provided appropriate tools, support, and compensation plans to help
them sell these new services effectively.
• Service Operations: Different working procedures and practices were
needed to reduce risk and simplify key operational areas. New services
such as web-based conferencing would align Vodafone business
operations that were previously separate. A new set of processes and
operational interlocks was implemented to allow different parts of the
business to interact with each other and with external partners and
• Billing Systems: Billing integration is a major component of the
service-operation model, and one of Vodafone’s most challenging
areas. Billing integration is influenced by different service-pricing
packages such as pay-per-use, flat fee, or a combination of the two.
These initiative forced Vodafone to undertake a massive $500m refresh
of its mobile network.
Under the new structure, the company has created two new roles at the top
level — the Chief Operating Officer and Chief Commercial Officer.
Mr Sunil Sood – who is currently Director Business Operations, for South
and West – will be the COO while Mr Sanjoy Mukerji, currently Director
Business Operations for North and East, will be the Chief Commercial
Officer. Both will report to CEO Mr Marten Pieters.
The existing position of Chief Marketing Officer will cease to exist under
the new plan. Mr Kumar Ranganathan the current CMO has been given a
global role to work on Group's commercial functions
In addition, the company will have another new role of Director External
Affairs who will be responsible for corporate communication, public affairs
and Vodafone foundation.
A new role of Business Development & Innovation has been created aimed
at building roadmap for innovation across voice and data products. This will
be headed by Mr Jonathan Bill, Director, Corporate Communications .
The Project Management Office (PMO) and Fast Forward teams will be
separated. The PMO will move to the technology function, reporting to Mr
Vishant Vora, Chief Technology Officer as most of the strategically
important programmes tend to be technology programmes or strongly
―These changes will help strike a better balance between our operational
intensity and the need to focus on emerging areas for the company‖--- CEO
Vodafone announced changes to its organisational structure
that are designed to ensure a more efficient and effective
delivery of its Vodafone 2015 priorities. The new structure
will allow Vodafone to implement its consumer and
enterprise plans more quickly and consistently, accelerate
growth in unified communications and achieve greater
efficiencies from scale.
From 1 October 2013, Vodafone will merge its Northern &
Central Europe and Southern Europe regions into one
Europe region and will report its Turkish operating company
within the Africa, Middle East and Asia-Pacific region from
that date given that country‘s emerging market
Vodafone is also creating an expanded Group
Commercial function, comprising Brand, Consumer,
Unified Communications, Terminals, Customer
Operations and Partner Markets. It will also
encompass the recently-created Group Enterprise
Vodafone said that the group‘s CEO, CFO and
Strategy & Business Development Director will be
responsible for overseeing strategies relating to other
The Vodafone group simplify accountability for it‘s
subsidiaries with the creation of two ‗operating regions‘:
Europe, which will include operations in European countries in
addition to the Czech Republic, Hungary, Romania and Turkey;
and Africa, Middle East and Asia Pacific, which will include
Australia, New Zealand and Fiji.
Two further units are to be created: Group Commercial, which
will include the previous activities of Group
Marketing, Vodafone Business Services, Vodafone Global
Enterprise and Partner Markets; and Group Technology, which
will oversee all of the company‘s technical activities.
The changes came with 12-15% salary hikes for top
management and 3-5% for middle management.