Business Strategy of Vodafone & O2: Ireland Ioannis Sapountzis ioanniss@kth.se 2012-11-15 IK2514

1. Business Strategy of Vodafone & O2: IrelandIoannis Sapountzisioanniss@kth.se2012-11-15IK2514

2. Business Strategy of Vodafone & O2: Ireland • Facts: • Small mobile market • Mobile penetration: 119.7%. • Decreasing ARPU: • Decreasing Voice ARPU • Increasing Data ARPU • Vodafone & O2 = 69.1% market share • Target Segment: • Vodafone targets no specific customer group but is more focused on business customers • O2 has offers for everyone BUT • targets young people via 48 MVNO • Targets smartphone mobile users via BitBuzz IK2514 – 2012/11/15 • Type of Services & Offers: • Both provide Services to Private and Business customers • Mobile, Mobile Broadband, Home Broadband etc • Smartphones for free, depending on contract etc. • Vodafone opts for differentiated services to add value. • O2 opts for simplicity and the launch of new services (O2 money, Location-Based advertisements) • Customer Acquisition Focus: • Vodafone boasts for coverage • “Power to You” • Smartphones & other offers for newcomers • O2 except smartphone deals offers different deals or exclusive content • Both use Social Media effectively 1

3. Business Strategy of Vodafone & O2: Ireland • Pricing Strategy: • Vodafone: both pre-paid and post-paid options. Voice, SMS and data in bundles with variable pricing dependent on usage and access speed. Highly complex pricing plans that differentiate depending on add-on services. • O2: simple pricing policy (boxed). No complex plans, added value is generated from the minimum possible top-up and the post-paid plans. • Network Development Strategy: • Same amount of spectrum for GSM & 3G • Vodafone acquired Complete Telecom. Invested 120m in network upgrade. Provides the network in wholesale. Will compete in future spectrum auction. Already have network sharing deal with 3. • O2 searches for revenue streams through new services. Has agreement with BitBuzz for indoor WiFi access. Invested 61m in networks. . Will compete in future spectrum auction. Already have network sharing deal with Meteor. IK2514 – 2012/11/15 • Summary: • Both mobile operators are leaders • and they seem to have similar strategies. • They both offer similar services but they have a different strategy for acquiring customers. • Both try to reduce their CapEx and OpEx for future networks via network sharing. 2