Vodafone facts for kids
Logo used since 2017
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Vodafone main office in Newbury
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| Public | |
| Traded as |
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| Industry | Telecommunications |
| Predecessors |
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| Founded | 16 September 1991 |
| Founders |
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| Headquarters | Newbury, Berkshire, England, UK |
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Area served
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Worldwide |
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Key people
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| Products |
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| Revenue |  €45.706 billion (2023) |
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Operating income
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€14.296 billion (2023) |
| €12.335 billion (2023) |
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| Total assets | €155.521 billion (2023) |
| Total equity | €64.483 billion (2023) |
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Number of employees
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104,000 (2023) |
| Divisions | Vodafone Global Enterprise |
| Subsidiaries |
List
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Vodafone Group Plc is a large British company that provides telecommunication services. Its main office is in Newbury, Berkshire, England. Vodafone mostly offers its services in Asia, Africa, Europe, and Oceania.
As of January 2024, Vodafone owns and runs mobile networks in 21 countries. It also partners with networks in 44 other countries. Its special division, Vodafone Global Enterprise, helps big companies with their phone and internet needs in 150 countries.
Vodafone is listed on the London Stock Exchange, which means its shares can be bought and sold there. It is also part of the FTSE 100 Index, a list of the 100 biggest companies on that exchange. Etisalat by e& is the largest single owner of Vodafone's shares, holding 14% of them.
Contents
- What Does Vodafone Mean?
- Vodafone's Journey Through Time
- Where Vodafone Operates
- Products and Services
- Advertising and Slogans
- Sponsorships
- Company Leadership
- Financial Information
- Things People Have Said About Vodafone
- See also
What Does Vodafone Mean?
The name Vodafone comes from combining parts of three words: voice data fone. The word "fone" is a shorter, more casual way to say "phone". The company chose this name to show that it offers both voice calls and internet data services on mobile phones.
Vodafone's Journey Through Time
Starting as Racal Telecom: 1980 to 1991
In 1980, Ernest Harrison, who led a company called Racal, made a deal. Racal was the UK's biggest maker of military radios. Harrison wanted to see if this radio technology could be used for everyday people. He asked Gerry Whent to look into it.
In 1982, Racal teamed up with an American company called Millicom Inc. They worked together to get a licence to build a mobile phone network in the UK. Racal owned most of this new company, called Racal-Millicom Ltd. The UK government liked their plan for covering the country with mobile service.
On January 1, 1985, the mobile network officially started. It was called Racal-Vodafone (Holdings) Ltd. Their first office was in Newbury, England. The very first mobile phone call in the UK by someone outside the company was made by comedian Ernie Wise that day. By 1986, Vodafone became fully owned by Racal.
In 1988, Racal Telecom became a public company, meaning people could buy shares in it. This was so successful that Racal Telecom became more valuable than its parent company, Racal Electronics. Because of this, Racal decided to separate Racal Telecom in 1991.
Becoming Vodafone Group and Vodafone Airtouch: 1991 to 2000
On September 16, 1991, Racal Telecom officially became its own company, named Vodafone Group. Gerry Whent became its first CEO.
In 1996, Vodafone bought more parts of other phone companies like Talkland and Peoples Phone. This helped them grow their customer base.
In January 1997, Chris Gent became the new CEO. That same year, Vodafone introduced its well-known Speechmark logo. It looks like a quotation mark in a circle, suggesting conversation.
On June 29, 1999, Vodafone bought a big American service provider called AirTouch. After this, the company changed its name to Vodafone Airtouch plc. This purchase also gave Vodafone a large share in Mannesmann, a German mobile network.
Later in 1999, Vodafone joined its US wireless business with Bell Atlantic Corp to create Verizon Wireless. This deal was completed in April 2000.
In November 1999, Vodafone tried to buy Mannesmann. Mannesmann had just bought Orange, a UK mobile operator, which Vodafone saw as breaking an agreement not to compete in each other's home countries. After a big struggle, Mannesmann finally agreed to Vodafone's offer of £112 billion in February 2000. This was the largest company merger ever at that time. To get approval for the merger, Vodafone had to sell the Orange brand, which was bought by France Télécom.
Vodafone Group plc: 2000 to Today
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On July 28, 2000, the company went back to its original name, Vodafone Group plc.
In 2001, Vodafone started a new idea called "Partner Networks." This meant they could offer Vodafone services in local markets without owning the local company. They would add the Vodafone brand to the local brand, like "TDC Mobil-Vodafone."
Vodafone sponsored the famous football team Manchester United F.C. from 2000 to 2006. From 2007 to 2013, they also sponsored the McLaren Formula One racing team.
In 2012, Vodafone bought Cable & Wireless Worldwide. This gave Vodafone access to a large fibre network, helping them offer more services to businesses.
In 2013, Vodafone sold its 45% share in Verizon Wireless back to Verizon Communications for a huge $130 billion. With this money, Vodafone started "Project Spring" to make its networks better in Europe and other growing markets like India.
In June 2023, Vodafone UK announced plans to merge with Three UK. If approved, Vodafone would own 51% of this new, larger company. This merger would create a group with 27 million mobile customers.
Where Vodafone Operates
After growing worldwide, Vodafone has recently been simplifying its operations.
Africa
Vodafone has a strong presence in Africa, often through its majority-owned company Vodacom Group.
Vodafone in Egypt
The Vodafone Egypt network started in 1998 as Click GSM and changed to Vodafone in 2002. Vodafone sold its shares in Vodafone Egypt to Vodacom in 2022. Vodafone owns 65% of Vodacom.
Vodafone in South Africa
In 2004, Vodafone's South African partner, Vodacom, started offering Vodafone's international services. Vodafone now owns 57.5% of Vodacom. In 2011, Vodacom changed its brand to include the Vodafone logo.
Vodafone in Ghana
In 2008, Vodafone bought a 70% share in Ghana Telecom. In 2009, Ghana Telecom became Vodafone Ghana. In February 2023, Vodafone Group sold its share in Vodafone Ghana to Telecel Group, leaving the Ghanaian market.
Other African Countries
Vodafone also has partner network agreements in Libya and used to operate in Cameroon.
Middle East
Vodafone has partner networks in the Middle East.
Vodafone in Qatar
In 2007, a group led by Vodafone was given the second mobile phone licence in Qatar. This company is called "Vodafone Qatar" and started services in 2009. Vodafone Europe sold its share in the Qatar business in 2018. In 2019, Vodafone Qatar launched the first 5G mobile hotspot in the region.
Vodafone in Oman
In January 2021, Vodafone received a licence to offer phone services in Oman. Vodafone will be the third mobile operator in Oman.
The Americas
Vodafone has partner networks in North and South America.
- Canada: Vodafone's partner network in Canada is Telus.
- Chile: In 2008, Vodafone made a deal with Entel PCS Chile. This allowed Entel PCS to use Vodafone's equipment and services.
- United States: Vodafone used to own 45% of Verizon Wireless, a very large mobile company in the US. However, Vodafone's brand was not used there. In 2013, Vodafone sold its share to Verizon Communications.
Asia
Vodafone has operations and partnerships across Asia.
Vodafone in India
In 2007, Vodafone bought a large share (67%) in Hutch Essar, an Indian mobile company. In September 2007, Hutch was rebranded as Vodafone India. In 2017, Vodafone announced it was merging its Indian business with Idea Cellular. This created Vodafone Idea, which became the largest telecom provider in India in 2018. In 2020, Vodafone Idea launched a new combined brand called 'Vi'.
Vodafone in Japan
In 1999, J-Phone launched a mobile internet service. It became Japan's third-largest mobile operator and was the first to offer camera phones. Vodafone later bought J-Phone. In 2003, J-Phone became 'Vodafone Japan'. In 2006, Vodafone sold Vodafone Japan to SoftBank.
Other Asian Countries
Vodafone has partner networks in Singapore, Hong Kong, Indonesia, Malaysia, Sri Lanka, Afghanistan, Thailand, and Taiwan.
Europe
Vodafone has many operations and partnerships across Europe.
- Germany and Italy: When Vodafone bought Mannesmann AG in 2000, it gained companies in Germany and Italy. The Vodafone brand was introduced in Italy in 2001 and became Vodafone Italy in 2003.
- Ireland: In 2001, Vodafone bought Eircell, the biggest wireless company in Ireland. It was later renamed Vodafone Ireland.
- Nordic and Baltic Countries: Vodafone has partner networks in Finland, Estonia, Iceland, Lithuania, Latvia, Sweden, and Norway.
- Central and Eastern Europe: Vodafone has operations or partnerships in Austria, Bulgaria, Croatia, Slovenia, Czech Republic, Hungary, Romania, Turkey, Serbia, North Macedonia, and Ukraine.
- Spain and Portugal: Vodafone has strong operations in Spain and Portugal. In 2013, Vodafone Spain agreed to invest with Orange S.A. to expand Spain's fibre-optic internet network. In 2014, Vodafone bought ONO, a large cable operator in Spain.
- United Kingdom: Vodafone UK is a major mobile provider in the UK.
Changes in Europe Since 2019
Since 2019, Vodafone has been changing its European business.
- In 2019, Vodafone sold its business in Malta to Monaco Telecom.
- Vodafone also created a separate company for its European mobile towers called Vantage Towers. This company manages over 68,000 towers in several European countries.
- In 2023, Vodafone sold its shares in Vodafone Ghana and Vodafone Hungary.
- In March 2024, Swisscom bought 100% of Vodafone Italy. Vodafone will still provide some services to the new company for a few years.
Oceania
Vodafone has a presence in Oceania.
Vodafone in Australia
The Vodafone Australia network started in 1993. In 2009, Vodafone Australia merged with 3/Hutchison to form VHA Pty Ltd, which uses the Vodafone brand. In 2020, VHA merged with TPG to create TPG Telecom Limited.
Vodafone in Fiji
The Vodafone Fiji network started in 1994. In 2014, Vodafone sold its share in Vodafone Fiji but kept a branding agreement.
Vodafone in New Zealand
Vodafone bought BellSouth New Zealand in 1998, which then became Vodafone New Zealand. In 2019, Vodafone sold its New Zealand business to investors. It kept using the Vodafone name until September 2022, when it announced it would change its name to One New Zealand. The rebranding was finished in April 2023.
Vodafone Global Enterprise
Vodafone Global Enterprise is a special part of Vodafone Group. It was created in 2007 to provide phone and information technology services to large companies around the world.
This division offers many services, including phone calls, internet data, and services for smart devices. It also helps companies with cloud computing and online collaboration tools. Vodafone Global Enterprise works in over 65 countries. Some of its big customers include Deutsche Post and Volkswagen Group.
Products and Services
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In 2009, Vodafone launched Vodafone 360, an internet service for mobile phones, PCs, and Macs. This service was stopped in 2011. In 2010, Vodafone launched the Vodafone 150, which was one of the cheapest mobile phones in the world. It was designed to be sold for under $15 in developing countries.
Mobile Money Transfer Services
In 2007, Safaricom, a company partly owned by Vodafone in Kenya, launched a mobile payment service called M-Pesa. This system allows people to send and receive money using their mobile phones. By 2008, M-Pesa had 1.6 million customers in Kenya. It became very successful, and Vodafone expanded the service to other countries like Afghanistan, Tanzania, South Africa, and India.
Health Services
In 2009, Vodafone started a new business unit focused on using mobile technology for healthcare. One successful project was "SMS for Life" in Tanzania. Vodafone helped create a system where health facilities could report their medicine levels using text messages. This helped make sure that anti-malarial medicines were always in stock, saving many lives.
Vodafone Foundation
The Vodafone Foundation is a charity that uses mobile technology to help people in need. Its slogan is "Connecting for Good." They work with other charities on various projects:
- DreamLab: A mobile app that uses your phone's power to help research diseases like cancer and COVID-19.
- TECSOS: Special mobile phones that help victims of domestic violence quickly contact emergency services.
- Paediatric Epilepsy Remote Monitoring System: A system that lets doctors check on young patients with epilepsy from far away.
- Safe Taxi System: A project in Portugal where taxi drivers can alert police if they are in danger.
- Learning with Vodafone Solution: Technology that helps teachers in India use videos and pictures to make learning more fun.
- The World of Difference programme: This program pays people to work for charities for a few months, helping good causes.
Advertising and Slogans
Since 2021, Vodafone's main advertising slogan has been "Together We Can." Before that, they used "The future is exciting. Ready?" (in 2017) and "Power to You" (in 2009).
Sponsorships
Vodafone has sponsored many sports teams and events, including:
- Al Ahly SC (football team, 2002–11)
- Beşiktaş J.K. (football team, 2014–20)
- Manchester United F.C. (football team, 2000–06)
- Olympiacos F.C. (football team, 2006–09)
- Scuderia Ferrari (Formula One racing team, 2002–06)
- McLaren (Formula One racing team, 2007–13)
Company Leadership
Chief Executive Officers
- Sir Gerald Whent was the first CEO of Vodafone Group from 1988 to 1996. He helped the company become the UK's market leader.
- Sir Christopher Gent took over in 1997. He helped Vodafone grow into a global company by merging with AirTouch and taking over Mannesmann.
- Arun Sarin became CEO in 2003. He focused on expanding Vodafone into new markets like Asia and Africa.
- Vittorio Colao was CEO from 2008 to 2018.
- Nick Read was CEO from 2018 to 2022.
- Margherita Della Valle became the CEO in January 2023 and leads the company today.
Financial Information
Vodafone shares its financial results every year. Here's a quick look at how the company has performed:
| Year ended 31 March | Money Made (€m) | Profit Before Tax (€m) | Total Profit (€m) |
|---|---|---|---|
| 2023 | 45,706 | 12,816 | 12,335 |
| 2022 | 45,580 | 3,954 | 2,624 |
| 2021 | 43,809 | 4,400 | 536 |
| 2020 | 44,974 | 795 | (455) |
| 2019 | 43,666 | (2,613) | (7,644) |
| 2018 | 46,571 | 3,878 | 2,788 |
| 2017 | 47,631 | 2,792 | (6,079) |
| 2016 | 49,810 | (190) | (5,122) |
| 2015 | 48,385 | 1,734 | 7,477 |
Things People Have Said About Vodafone
Tax Practices
In 2010, a magazine called Private Eye reported on how Vodafone managed its taxes. It suggested that Vodafone used a company in Luxembourg to reduce the amount of tax it paid on a big deal. Vodafone later agreed to pay £1.25 billion related to this. Some experts believed the amount of tax not paid could have been much higher.
These reports led to protests outside Vodafone shops in the UK. People were upset about the company's tax strategies.
In 2011, another report claimed that Vodafone's Swiss offices were very small and seemed to be mainly for tax reasons. Vodafone stated that these Swiss offices were not involved in its global finances for many years.
Vodafone also had a long-running tax dispute in India. In 2012, an Indian court ruled that Vodafone did not owe taxes from a 2007 deal. However, the Indian government later changed the law to allow for taxes to be charged backwards. In 2020, an international court ruled in favor of Vodafone, saying India's tax claims were unfair.
Internet Shutdown During Egyptian Protests
During the protests in Egypt in 2011, Vodafone was asked by the Egyptian government to shut down all phone and internet services. Vodafone said it had to follow the law and obey the government's order. Vodafone also received criticism for allowing the government to send mass text messages to people during the protests. These messages encouraged people to go against the protestors. Vodafone later said they had no choice but to send these messages and complained to the Egyptian authorities about it.
Customer Service Concerns
In Australia, around 2010, Vodafone faced a lot of criticism for poor customer service and network problems. People even created a website called "Vodafail" to share their complaints. In response, Vodafone worked to improve its network and offered a 30-day satisfaction guarantee.
In the UK, a consumer group called Which? rated Vodafone as the worst mobile network provider for several years in a row.
Roaming Costs on Stolen Phones
Vodafone UK, like some other phone companies, has been criticized. If a customer's phone is stolen abroad, they can be charged very high roaming costs, even though the company can limit costs for pay-as-you-go customers.
Breaking Consumer Rules
In 2016, Vodafone was fined £4.6 million by Ofcom, the UK's communications regulator. This was for "serious" violations of rules meant to protect customers.
In 2017, a group called Citizens Advice found that Vodafone and other companies were not lowering customers' bills after their fixed contracts ended. This meant customers were paying extra money each month.
Surveillance Information
In 2014, Vodafone shared information about how governments can directly access customer data and information from phone companies.
See also
- List of mobile network operators of Europe
