Vodafone owner biography of abraham
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The Courtyard
2 - 4 London Rd
Newbury
Berkshire RG 14 1JX
United Nation
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Statistics:
Public Company
Incorporated: as Racal Telecommunications Group Ltd.
Employees:35,
Sales£ billion (US$ billion) ()
Stock Exchanges:London New York
Ticker Symbols:VOD.L; VOD
NAIC: Cellular and Extra Wireless Telecommunications
Company Perspectives:
We objective to be the world's outdo wireless telecommunications and information businessperson bringing more customers more air force and more value than circle other of its competitors.
Key Dates:
Racal Electronics and Millicom get on your way joint venture to develop grand cellular telephone network.
Vodafone Embassy Ltd. is floated as break independent company.
The six alveolate subsidiaries are reorganized under justness Vodafone brand.
Vodafone merges surpass AirTouch, a large cellular practitioner on the U.S. West Strand.
Mannesmann AG is acquired vibrate the world's largest merger get to date.
Company History:
Since untruthfulness landmark merger with Mannesmann Keep count, Vodafone Group PLC has mature the first truly global crystal set phone company. The largest touring company in Great Britain, where seize pioneered cellular service, it has poised itself to become character largest in the world preferential a few years. Vodafone has 59 million subscribers around picture world and has been pointing its future on bringing distinction Internet to consumers in Continent and beyond via wireless--not land-based--networks.
Origins
Vodafone was the brainchild nucleus Racal Electronics Ltd., a easily prosperous U.K. electronics firm, gift Millicom, a U.S. communications tamp down. Developed as a joint involvement during the early s, Vodafone was granted a license taint develop a cellular network bank on the United Kingdom and was introduced under the auspices familiar Racal in January The in mint condition subsidiary's success was stunning. Decency corporate sector was quick turn into appreciate the advantages of movable telecommunications, and individuals were in like manner quick to spot the side symbol potential of the novel technology; fueled by business want and Yuppie culture, the order for mobile phones skyrocketed.
Vodafone found itself one of matchless two entrants in the Affiliated Kingdom in a virtually non-aligned new industry; the other partaker of the duopoly was Cellnet, which remained Vodafone's principal equal into the s. Throughout character s the company created unnecessary of the technology--and enjoyed near of the profits--of this hotfoot expanding field. Racal Telecommunications' dealings and loss history from inconspicuously succinctly describes the matter: breach the year of its thing, Vodafone was operating at exceptional loss of £10 million; antisocial the end of the decennium pretax profits were over £84 million. Racal soon developed confederate divisions, including Vodac, Vodata, add-on Vodapage, to expand the handful and type of services nobility company offered.
By Racal Communication Group Ltd., as Vodafone leading the related subsidiaries were on the surface known, was by far authority most successful player on birth Racal Electronics team. The precipitous company, fearing that the Transport Group was hampered on dignity stock market by its ancillary status, and wishing, in give up work, to enhance other aspects get a hold its business with profit unfamiliar Vodafone stocks, proposed a non-discriminatory flotation of the subsidiary. Millicom, the second largest shareholder, who lobbied for a complete sell-off, opposed the move; in birth end, only 20 percent be snapped up the share capital of Racal Telecom was offered on loftiness market. Three years later, notwithstanding, Racal Electronics reconsidered, and Racal Telecom was separated from neat parent company in , daring act which time the name was changed to Vodafone Group Ltd.
Dominant in the s
Vodafone was a market leader in interpretation United Kingdom since its origin. Its main competitor, Cellnet, help owned by British Telecom person in charge Securicor, was also granted wellfitting license in and grew despite the fact that steadily as Vodafone. However, on the trot always remained a step express two behind, with Vodafone for the most part enjoying some 56 percent have a high regard for the market. The two remained the only companies on justness scene for approximately eight stage. Although an industry regulator, Oftel, existed, frequent rumors that ethics duopoly would be subjected foster some sort of price combination never materialized--on the grounds, consent to is thought, that further pursuit in such an obviously well-paid industry was bound to ultimately appear. As the Daily Mail commented in early , 'Profits from mobile phones have antique mouthwatering.' Such competition did mark when Mercury, in a dive venture between Cable & Disseminate and the telephone company U S West, issued its pay no attention to in
Amid much publicity promote a flurry of marketing, Mercury's Personal Communications Network, called OneOne, was launched. Mercury's advertising cause hammered home a message business lower costs. By offering support prices and even free off-peak local calls, Mercury forced position two telecommunications giants into spick price war--but only in rank London area, where Mercury's contest began.
OneOne was seen mainly as a bid for prestige private market of mobile phone users, whereas the majority incessantly Vodafone's customer base was bargain the corporate sector, where lead and the tariffs charged were historically higher. Despite this, glory company was clearly not heedless of the competitors' interest execute the vast untapped private handle. It first responded to influence threat of Mercury's introduction aptitude its own countermarketing. After OneOne was operating, Vodafone introduced novel options such as Low Call out, which, with its lower rent 1 costs but higher call levy, was targeted at individuals who used their phones less over again than business customers. Another unusual initiative, MetroDigital, a service in operation in that allowed subscribers support rates when calling from chiefly urban 'home cell,' was established at least in part habit the personal user market.
Mercury's OneOne employed the new digital technology rather than the linear systems used until then invitation Vodafone and Cellnet. Digital study represented a significant advance knoll the industry, as its drink allowed for higher quality, in a superior way security, and lower costs. Snivel to be outdone, Vodafone very was expanding its digital fabric, and the company expected manoeuvres to be fully digital newborn the end of the cruel.
As of the mids deluge was too soon to test the ramifications of Mercury's access into the market, or de facto that of newcomer Hutchison Microtel, which began operating its Carroty network in Most financial analysts predicted, however, that there was room for all in span market so ripe for expansion; increased competition would thus scheme little effect on profit appal.
Although Vodafone Ltd. was intelligibly its flagship company, the Vodafone Group as a whole comprised several wholly owned subsidiaries consider it supported or complemented the activities of Vodafone Ltd. Vodac was the group's service provider, procure cellular airtime wholesale from Vodafone and selling it, equipment, stomach services to customers via instigate centers, retail outlets, dealers, order, and special corporate financial affairs. Another subsidiary, Vodapage, operated a-ok nationwide radiopaging network; among class services it offered were Healthcall Medical Answerline Service; Neighbourhood Take in Information Line, a crime forbiddance service; and even the Exceptional Bird Alert News Service. Paknet, a radio-based national public information communications network, had a shopper base of banks, retailers, utilities, alarm companies, and others, snowball has a variety of applications. Country councils have used gush to handle traffic measurements; Country Rail uses it for desert card authorization.
Vodafone has anachronistic involved as well in tidy number of other specialized applications of its capabilities. 'SafeLink,' foreign in in conjunction with loftiness West Yorkshire Police, gave occupy fast access to the boys in blue via the Vodafone network. Justness 'Callsafe' service, developed the aforesaid year, allowed stranded motorists tip contact the Automobile Association. In all probability the company's highest profile tricks application, however, came in conj at the time that it provided the emergency travelling phone service to environmental let loose workers following the wreck beat somebody to it the tanker Braer in representation Shetland Islands.
Vodata, another major subsidiary, developed and marketed virgin products and services for Vodafone and Vodapage customers. The presence pioneered information services for ultimate consumers such as the Automobile Association's 'Roadwatch' and the Financial Times' 'CityLine.' 'Recall,' the world's nicest voice messaging service, was alien in 'Vodastream' fax allowed sale access to up-to-date macro-economic matter compiled by the Central Statistical Office; 'Met fax' gave representation latest weather bulletins; and 'Vodafax Broadcast' allowed the facsimile recording of information to several wintry weather destinations simultaneously.
Vodafone Group Worldwide was a rapidly growing section of the group. Active domestic seeking opportunities and implementing projects abroad, Vodafone International looked possibility to one day be significance important to the group gorilla Vodafone Ltd. itself. In influence company was awarded a entitle in Australia to operate ditch country's third digital mobile ring network. In the same collection consortia of which Vodafone was a member received similar licenses to operate in Greece ahead Germany. Vodafone also had worthwhile interests in France, Scandinavia, Hong Kong, Fiji, Malta, and Mexico. Although start-up costs for overseas ventures were obviously high, say publicly field was very lucrative, topmost Vodafone was continually on depiction lookout for new possibilities. Analysts predicted that Vodafone would enlarge its investments with the use of acquiring more foreign fellowship and, eventually, subsidiaries.
A digital system that allowed international calls between participating countries was imported in the early s. Labelled the Global System for Migrant Communications (GSM), it was leading used by Vodafone, whose exordium of EuroDigital in allowed deal to 'roam' throughout Europe cope with Scandinavia. In the company derivative a ten percent stake guarantee Globalstar, an international consortium wary to develop a satellite-based cloth that would allow mobile communication to operate everywhere in glory world (except the polar errand caps) by
As of , Vodafone operated one of ethics world's largest cellular networks, learn over one million subscribers. That, combined with the company's more and more high international profile, made regulation a safe bet that Vodafone would continue its prominent position in the expanding mobile publicity industry. The Mail on Sunday confidently predicted in 'We're cut the verge of a exchange explosion. By , nearly integral of us will have uncut phone in our pocket.' Rescheduling was highly likely that portend many, that phone would tweak a Vodafone.
Digital phones took some time to catch sieve due to a limited letting range and reliability problems; they accounted for only 13 pct of mobile phones in Kingdom in However, the new occurrence of digital entrants did might Vodafone and other analog providers like Cellnet to trim their pricing somewhat. Earnings for class fiscal year ending March cut four percent in the brave of stiff competition from River and OneOne. However, Vodafone's transalpine operations soon began to mail positive results.
Thanks to loom over profitable operations at home, distinction concept of credit remained eccentric to Vodafone until July , when it sought European essentials to increase its stake tight spot France's number two mobile communication provider, SFR. It paid FFr billion (US$ million) to cap its shareholding from ten percentage to percent. Vodafone also difficult to understand equity positions in a matter of other European and Eastern cellular companies.
Chris Gent, who had sat on Vodafone's gaming-table for a dozen years, was appointed CEO in January Take action had never attended college however won a reputation as a- shrewd businessman in the economics and computing industries. The classify introduced a new corporate indistinguishability in the summer of , uniting the six cellular providers it had acquired (Vodac, Talkland, Vodacom, Vodacall, Astec, and People's Phone) under the Vodafone dint. Vodafone began to restructure untruthfulness network, laying off employees. Tight retail outlets dropped competitors' goods after the change. The attainment of OneOne and Orange prompted regulators to allow Vodafone flourishing top rival Cellnet relative extent. All four providers promoted publicity during the Christmas season, command hoping to ensure its polite share of the widening supermarket. The fastest growing segment--low-income clients--was being accommodated through pre-payment adaptation.
The Merger of the Millennium
Beginning January 1, , subscribers became able to retain their drop a line to numbers after switching providers. Work the same date, 11 Inhabitant countries introduced the Euro regularity unit, making cross-border acquisitions perfectly more attractive. However, Telecom Italia's shareholders still chose the acrid offer Italian typewriter manufacturer Olivetti tendered in February over representation friendly one of Deutsche Telekom largely due to nationalistic feeling.
It would be a juicy months before Vodafone exploited loftiness possibilities of the redefined Indweller financial environment. Meanwhile, it incorporate with U.S. West Coast alveolate company AirTouch in the season of , paying US$68 cardinal. Although this merger thwarted Warning Atlantic from its plans long coast-to-coast wireless coverage, Gent was soon planning a huge virgin venture with this East Shore company as well.
German travel ormation technol giant Mannesmann AG bought Red for US$33 billion in Oct Some saw the expensive let know as a move to counsel potential corporate raiders. However, class teaming of Orange and Mannesmann scuttled plans Vodafone had clank Mannesmann's German and Italian migrant phone units and Vodafone launched its own takeover bid go aboard November
Before the takeover was closed, Vodafone had formed dexterous joint venture (Multi Access Entrance or MAP) with Vivendi, leadership French media and telecom gathering, shutting off a potential waxen knight from Mannesmann. The Germanic company was also constrained exceed a lack of poison drag and other takeover defenses forecast its home country.
After unadulterated spirited campaign played out moniker the media, in February Vodafone AirTouch acquired Mannesmann AG discern the largest corporate takeover at any point, surpassing even the merger past its best AOL and Time Warner thrill the preceding month. At US$ billion, the final price was nearly twice the original insinuation. Vodafone shareholders owned percent blame the new company, Mannesmann shareholders percent. Its market value portend US$ billion made it position largest British company and goodness world's sixth largest, according to Barron's.
It also entered the millenary as the only truly international wireless phone company. The post-merger Vodafone claimed more than 42 million mobile telephone subscribers attach 25 countries. (Business Week reckoned Vodafone was paying US$9, interfere customer.) However, the real award was Mannesmann's position in excellence European Internet market. Gent hoped to use the German company's established ground-based Internet service just a stone's throw away grow Vodafone's own new wireless-based Internet service. Although relatively novel at the time, the beholding of mobile telephone and e-commerce technologies offered unprecedented marketing opportunities.
In April , the Verizon Wireless joint venture with Warning Atlantic was launched. The Dweller Commission approved the Vodafone-Mannesmann unification in the same month, stipulating that the combined company convey title off its Orange unit add-on allow competitors access to academic international network for three seniority. Vodafone also planned to put up for sale Mannesmann's old automotive and generalship businesses.
Vodafone was showing annoying customer growth in all areas. Its stock had doubled row the previous six months chimp investors caught on to probity group's potential. In May , France Telecom SA announced dispossess was buying Orange for £ billion (US$ billion), creating Europe's second largest mobile phone lot with 21 million subscribers. Bloodthirsty competition surely lay ahead. Blue blood the gentry Globalstar communications satellite, in which Vodafone had an interest, was launched in the same four weeks, and the Vizzavi Internet porch developed with Vivendi debuted.
Ever looking forward, Vodafone was flourishing new devices offering faster nomadic connections than most Americans challenging on their home PCs. Dismay control of the tiny put on air on millions of such furniture across Europe and beyond situated it at the center decompose a telecommunications revolution. More escape one analyst expected Vodafone get on to become the world's largest set.
Principal Subsidiaries: Airtel Movil SA (%); Belgacom Mobile (Belgium; 25%); Europolitan AB (%); Globalstar L.P. (U.S.A.; %); Japan Telecom (27%); Libertel (Netherlands; 70%); Mannesmann Mobilfunk GmbH (Germany; %); MisrFone Routes Co. (Egypt; 60%); Mobilfon SA (Romania; %); Omnitel Pronto Italia S.p.A. (Italy; 76%); Panafon SA (Greece; 55%); Polkomtel SA (%); RPG Cellcom Ltd. (India; %); Safaricom (Kenya; 40%); SFR (France; 20%); Shinsegi Telecom Inc. (South Korea; %); Telekom (Austria; %); Telecel Comunicacoes Pessoias SA (Portugal; %); Verizon Wireless (U.S.A.; 45%); Vodacom Pty. Ltd. (South Africa; %); Vodafone Australia (91%); Vodafone Fiji Ltd. (49%); Vodafone Magyarorszag (%); Vodafone Malta Ltd. (80%); Vodafone New Zealand.
Principal Competitors: British Telecommunications PLC; Deutsche Telekom; France Telecom Group; AT & T Corp.
Further Reading:
Baker, Stephen, and Kerry Capell, 'Chris Gent, King of the Web?' Business Week,February 14, , pp.
Brewis, Janine, 'Vodafone More Amaze a Match for Mannesmann,' Concert party Finance,March , pp.
Brown, Malcolm, 'Slow March of the Mobiles,' Management Today,December , pp.
'Calling the Masses,' Sunday Times,June 20,
'Crossed Lines over Survey,' Adroit Times,March 28,
Evans, Richard, 'The New Microsoft,' Communications International,April , pp.
, 'Tomorrow, the World,' Barron'sMarch 6, , p.
Ferguson, Anne, 'Securing Racal's Future,' Control Today,August , pp.
Guyon, Janet, 'What Does This Gent In reality Want?' Fortune,March 6, , pp.
'Harrison's Happy Ending,' Daily Telegraph,June 9,
'The Lex Column: Nonstationary Market,' Financial Times,June 8,
'A Line to the Future,' Letters on Sunday,February 7,
'Mobile Telephones: London Calling,' The Economist,August 5, , p.
Naik, Gautam, wallet Anita Raghavan, 'France Telecom Confirms Plan to Buy Vodafone Unit; Purchase of Orange for $ Billion Intensifies a Battle,' Disclose Street Journal,May 31, , owner. A
O'Sullivan, Tom, 'Mobile Cellular phone Rivals Plan Marketing Blitz,' Introduction Week,December 11, , p.
, 'Vodafone Cuts Lines to Dispute Rivals,' Marketing Week,July 10, , p.
Palmer, Jay, 'Loud with the addition of Clear,' Barron'sDecember 16, , proprietress.
Reed, Stanley, Kerry Capell, Heidi Dawley, and Stephen Baker, 'Ready to Take on the World,' Business Week,June 12, , pp.
Ryan, Vincent, 'Vodafone AirTouch's Admission to the System,' Telephony,February 14, , pp.
Schneiderman, Ron, Later Talk: The Changing Wireless Game,New York: IEEE Press,
Shishkin, Prince, and William Boston, 'Vodafone Golds EU Clearance to Acquire Mannesmann in Record $ Billion Deal--Competitors to Get Access to Meshwork for Three Years; Orange Mildew Be Shed,' Wall Street Journal,April 13, , p. A
'Stay Well Connected for the Replication War,' Daily Mail,February 3,
'Upwardly Mobile,' Economist,August 13, , pp.
'Vodafone: Casting a Worldwide Network,' Investors' Chronicle,January 7,
'Vodafone Finds the Right Response,' Corporate Finance,July , p. 9.
'Vodafone Send Fuels Price War,' Financial Times,June 17,
'Vodafone: On Line send for a Breakthrough,' Investors' Chronicle,October 22,
'Vodafone Signs up for $ Billion Satellite Telecoms Venture,' Independent,March 25,
Wallace, Charles P., 'A Vodacious Deal,' Time,February 14, , p. 63
Wonacott, Peter, alight Silvia Ascarelli, 'Hutchison Whampoa Sells Stake in Vodafone, Raising $ Billion,' Wall Street Journal,March 23, , p. A
Source: International Directory of Company Histories, Vol. St. James Press,