Industry Trend Analysis - LTE Tracker: Vodafone Seeing Success - FEB 2018

BMI View: The latest edition of our LTE Tracker highlights how Vodafone has been successful with its data strategy, especially the latest Pass plans. Rankings remain unchanged, though growth outside Europe has stalled, as operators are looking at 5G as the ne xt stage of market development .

The latest edition of our LTE Tracker sees very little change in the rankings (see ' LTE Tracker: Europe Still Lagging Behind ' , June 7 2017). Europe continues to lag behind its global rivals in the US and Asia, but more operators in the region are now reporting penetration rates above 50%. Vodafone has been particularly successful with its overall data strategy, in all its core European markets, but specifically Spain and Italy, whose own internal dynamics have led to a greater uptake of premium services.

As well as its convergence strategy, which has led the operator to acquire a number of fixed assets in Europe, Vodafone has also revamped its data offers in the region. Focusing on the premium segment, they first launched their RED tariffs, allowing both flexible device upgrades as well as inclusive content, for example Spotify. These were followed by the introduction of the "more-for-more" plans, offering extra services and larger data bundles, and finally the Vodafone Passes, zero-rating specific data services - video, chat, music, social - for an extra fee. The success of the latter has had a positive impact on ARPU, as it enabled Vodafone to upsell services to its customers. Looking at specific countries:

  • Vodafone's Data Strategy With Positive Traction
    LTE Penetration (%) And Six-Month Change, Q317
    Source: BMI, operators

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