Telecom operator Vodafone is looking at data services to drive its future growth in Europe.
According to a company spokesperson, “As per our new strategy in November 2010 we plan to create a more valuable business and establish Vodafone as the leading operator in mobile data across Europe, Africa and India and further develop our market position in total communications.”
Recently, the telecom regulator Ofcom opened frequency access to 3G technology. The move this will help players such as Telefonica SA’s O2 and Vodafone to offer more applications such as video on new smartphone models.
Addressing an analyst meeting, Vittorio Colao, chief executive at Vodafone, stated that the company had focused on the right areas of growth, especially regarding mobile data.
The company's interim results reported that revenue from data and emerging markets contributed more to the its balance sheet than mature voice services for the first time.
According to Emeka Obiodu, an analyst at research firm Ovum: “The voice business is stagnant in Europe and moving ahead telecom companies will move to data. Vodafone is on the right track and has bounced back from recession."
In the second quarter Vodafone saw a strong recovery in the UK. Revenue growth rates were up as improved device range and extended distribution led to good customer growth. The company added 122,000 UK customers during the third quarter of this year, taking its total base in the UK to 18.98m.