Vodafone made its mark as a mobile service provider, but the company now believes it has to become a “total communications provider,” which means fixed-line services, broadband services and video entertainment, the Wall Street Journal reports.
Vodafone also believes it has to aim to be the number one or number two provider in each of three key regions where it expects to focus operations, including Europe, sub-Saharan Africa and India.
Vodafone currently has more than 340 million subscribers in over 20 countries, as well as minority investments in a number of other companies, including Verizon Wireless. Vodafone already has sold the company’s 3.2 percent stake in China Mobile Ltd. It retains a 45 percent stake in Verizon Wireless, a share of France’s SFR SA, Polkomtel SA in Poland and India’s Bharti Holdings as well.
Lots of fixed-line operators might want to go the other way, adding mobile capabilities. Vodafone thinks it has to add fixed-line operations.
Those strategy considerations illustrate the way that the tier-one business, at least, has become the sort of business that virtually requires operation of both fixed and mobile networks.
And that’s only half the story. Most executives at tier-one firms also believe they have to gradually wean themselves away from an exclusive reliance on revenues generated by access services and end user customers. That means adding more revenues from business partners rather than end users.
Verizon getting a share of ad revenues from Google searches conducted on Verizon’s mobile devices provide one example.
