vodafone carrier services€¦ · marketing/sales strategy: very strong vodafone carrier services...

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© 2014 Current Analysis Inc. All rights reserved. For more information, please call +1 703 404 9200, toll-free +1 877 787 8947 Europe +33 (0) 1 41 14 83 15. Or visit our Web site: www.currentanalysis.com 1 Company Assessment Vodafone Carrier Services Wholesale Services Joel Stradling, Current Analysis Research Director, Business Network and IT Services July 8, 2014 J Summary Competitive Strengths • VCS has completed the internal integration and reorganization bringing together buying and selling activities across 26 operating companies. • VCS can combine best-of-breed services with powerful buy/sell synergies to be a strong competitor. • Vodafone Group provides strong financial backing. • e former Cable & Wireless Worldwide provides global network assets and existing wholesale market traction. • VCS owns substantial undersea cables and is investing in more undersea backhaul and IP transit. Competitive Weaknesses • Work is ongoing to integrate networks and back-office OSS in order to combineVodafone’s assets with the former Cable & Wireless assets into a single efficient structure. • More progress is required to provide more detailed product specifications, for example in the area of IPX. • Competitors currently present their wholesale carrier service portfolios and current developments in more comprehensive detail via web presentations, press and marketing; examples include BICS, Sparkle and TSIC. Joel Stradling Current Analysis Research Director

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Page 1: Vodafone Carrier Services€¦ · Marketing/Sales Strategy: Very Strong Vodafone Carrier Services combines the carrier services businesses of Vodafone’s operating companies and

© 2014 Current Analysis Inc. All rights reserved. For more information, please call +1 703 404 9200, toll-free +1 877 787 8947 Europe +33 (0) 1 41 14 83 15. Or visit our Web site: www.currentanalysis.com 1

Company Assessment

Vodafone Carrier ServicesWholesale Services

Joel Stradling, Current Analysis Research Director, Business Network and IT Services

July 8, 2014

J Summary

Competitive Strengths•VCShascompletedtheinternalintegrationandreorganizationbringingtogetherbuyingandsellingactivitiesacross26operatingcompanies.

•VCScancombinebest-of-breedserviceswithpowerfulbuy/sellsynergiestobeastrongcompetitor.

•VodafoneGroupprovidesstrongfinancialbacking.

•TheformerCable&WirelessWorldwideprovidesglobalnetworkassetsandexistingwholesalemarkettraction.

•VCSownssubstantialunderseacablesandisinvestinginmoreunderseabackhaulandIPtransit.

Competitive Weaknesses•Workisongoingtointegratenetworksandback-officeOSSinordertocombineVodafone’sassetswiththeformerCable&Wirelessassetsintoasingleefficientstructure.

•Moreprogressisrequiredtoprovidemoredetailedproductspecifications,forexampleintheareaofIPX.

•Competitorscurrentlypresenttheirwholesalecarrierserviceportfoliosandcurrentdevelopmentsinmorecomprehensivedetailviawebpresentations,pressandmarketing;examplesincludeBICS,SparkleandTSIC.

Joel Stradling Current Analysis Research Director

Copyright © 2014 Current Analysis, Inc.

July 8, 2014August 20, 2013

Overall Position

Strategy

Products

Sales Strategy

Support

Partnerships

Leader

Very StrongStrong

Competitive

Vulnerable

Competitive Index

Page 2: Vodafone Carrier Services€¦ · Marketing/Sales Strategy: Very Strong Vodafone Carrier Services combines the carrier services businesses of Vodafone’s operating companies and

© 2014 Current Analysis Inc. All rights reserved. For more information, please call +1 703 404 9200, toll-free +1 877 787 8947 Europe +33 (0) 1 41 14 83 15. Or visit our Web site: www.currentanalysis.com 2

Company Assessment

Strategy: Very StrongVodafoneGroupEnterprise,thenewVodafoneCarrierServices(VCS)divisioncombinesthecarrierservicesbusi-nessesofVodafoneGroupwiththeglobalwholesaleactivitiesoftheformerCWW.VCShascompleteditsintegrationprogramplacingtogetherbuyingandsellingunitsacross26operatingcompaniesandtheformerCWWoperationsinasinglegroup.ThissensibleactivityresultsinVCSgivingasinglefacetoitscustomersthroughglobalaccountman-agementandnationalaccountmanagementstructures.Thecarrierisnowfocusedondevelopingthreecoreproductareasincludingvoice,networkcapacityandmobility.Recognizinggrowthopportunitiesthatderivefromgrandscaleexistingtrafficvolumes,includingretailtrafficfromitsglobalbaseofmobileandfixedcustomers,VCSisinvestinginitsglobalvoiceplatform.LeveragingVCS’scaleshoulddelivercostreductionsandrevenuegrowth.WhenVCShascompleteditsunifiedglobalplatform,itwillbeabletocontrolvoicequalityend-to-endandsupportofHDvoiceandVoLTEservices,bothbetweenVodafonecustomersandwithinterconnectedpartners.

Underpinningitsglobalvoiceplatform,VodafoneiscurrentlydeployingIPXconnectivity,basedonitsexistingglobalMPLSnetwork,whichcurrentlycoversmorethan40countriesandwillcovermorethan65by2015.TheirIPXalreadysupportsarapidlygrowing4GroamingfootprintandwillbetheprimaryinterconnectionplatformforanincreasingrangeofIP-basedservices–includingvoice,roaming,signalling,HDvoiceandVoLTE.VCSsellsitscar-rierservicestoothertelcos,ISPs,OTTplayersandcommunicationsprovidersandatthesametimedeliversefficien-ciesandcost-savingstoVodafoneGroupinternalcustomers.Previously,Vodafoneoperatingcompaniesconductede-auctiondealsforvoicetrading,butwiththeformationofVCSasasingleinterfacetoVodafone,thedealsarelargevolume-basedagreementswhichdelivereconomiesofscaleandcostsavingswhenbothbuyingandselling.

ThecompanyhasestablishedbusinesswithlargeInternetplayerssuchasGoogle,AmazonandSkype.IntheUK,VCShasadedicatedportfoliofortargetingfacility-basedcarriersandpartnersanditsLLUofferingscanbeprovidedonflexibletermsandthecarriercandemonstrategoodcustomerservicelevelsandqualitytodifferentiatefromcompetitors.VCS’strengthsincludeglobalnetworkpresenceinover150countries,itsIPv6-enabledglobalnetworkandpresenceinover80cablesystems,includingitsnewinvestmentintheBayofBengalGateway(BBG)aswellastheEurope-PersiaExpressGateway(EPEG),EuropeIndiaGateway(EIG)andWestAfricaCableSystem(WACS).ItscontinuingnetworkinvestmentinIndia,AfricaandAsia-Pacific,aswellasitsGlobalMarketsSolutionsCentreinIndia,makeitanattractivepartnerforcarriersintheseregions.

Solutions/Services/Products: StrongVodafoneCarrierServices’portfoliospansfixedandmobilecarrierservicesbackedbyglobalandlocal/granularreach.Theserviceprovider’sportfolioincludesinternationalwholesalevoice,ITFS,servicesinmobileandfixedvoice,dataandmessagingconnectivity,publicandprivateIPVPNandprivatecarrierMPLSservices,accessandlast-mileservicesincountriessuchastheUK,Germany,India,TurkeyandNewZealand,SouthAfrica,therestofAfrica,theNetherlands,Spain,GhanaandQatar.CurrentproductdevelopmentinitiativesareunderwayintheareasofIPX,intelligentrouting(globalIPswitching)includingconsolidatingIPtrafficontothesingleAS1273number,andanSMShubsolution.ThestrategyforvoiceandIPisfirsttoreduceoperationalcostsandthentobeginsellingserviceonthelower-costbaseplatform.VCSoffersaGlobalVoIPInterconnect(GVI)productaspartofitswholesalevoicerange,appealingtonewcommunicationserviceprovidersandsmallISPs/telcosthatwishtostartoutonanewvoicebusinessdesignedaroundanIPvoicestrategyfromtheoutset.VCSalsooffers‘managedvoice’outsourcing,whichhasthepotentialtodrivenewbusinessandsalesandoffsetfallingvoicerevenuepressure.ThecompanyismakinggoodprogressinadaptingsuchproductsforglobalmarketsthroughitsGlobalMarketsSolutionsCentreinIndia.Wholesaledatacentreandflexiblecomputing(cloud)solutionsareavailableandthecompanyoffersadvancedsecurityservicessuchasDDoSblackholingtocontentproviders.VCScarriesnearly60billionunregulatedvoiceminutesacrossitsIPandTDMcore,withCLIandenterpriseQoSforTDMandIPvoicecalls,withitsGlobalVoIPInterconnectgatewaybridgingbetweenthetwotechnologies.ItisworkingonaTDM-VoIPmigrationstrategy

Vodafone Carrier Services (Continued)

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Company Assessment

Vodafone Carrier Services (Continued)

fornationalmarkets.VCSoffersaspecificportfolioforitsUKcarriersandisworkingtoprovidecarrierswithinnovativesolutionbundlescomprisingtwoormoreofthefollowingproducts:IPVPN,EthernetWANoptions,dedicatedInternetaccess,SIPtrunking,wholesalebroadbandandamanagedapplication/SaaSportfolio,andhostedExchange.IPCentrexandmanagedfixed/mobileconvergenceproductsareinthepipeline.

Marketing/Sales Strategy: Very Strong VodafoneCarrierServicescombinesthecarrierservicesbusinessesofVodafone’soperatingcompaniesandCWWintoasingle-entitybusiness.Marketingmessagesarebuiltuponnetworkcapabilitiesatboththeglobalandgranularin-countrylevel,withhighlightedbenefitsofeconomiesofscale.VCShasputinplaceglobalaccountmanagementandnationalaccountmanagement.VCSisbuildingitsbrandrecognitionasawholesaleprovideraroundtheworld,andithasadedicated,multilingualsalesteamtospearheadin-regionbusinessdevelopment.VCShasimplementedaglobalaccountmanagementapproachforitstop50customersandpartnerswhileputtinginplacededicatedlocalaccountmanagementteamstoserveothercustomers.

Customer Service and Support: Very Strong VCSemphasizescustomerserviceandsupport.ThecarrierisfocusingoncustomerexperienceimprovementbyintegratingservicedeliveryandassuranceacrossitoperatingcompaniesandCWWintoaconsolidateddistributedorganizationwithacommonoperatingmodelandcommonprocesses.Customerswithinthetop50areallocatedaglobalservicemanagementmodel,whilelocalservicemanagementteamsareresponsibleforothercustomers.Theseteamsconductregularserviceandqualityreviewswithcustomersandpartners.VCScontinuestoenhanceitscustomerportalforwholesaleIPVPN,dedicatedInternetaccess,SIPtrunkingandEthernetservices,increasingthelevelofpersonalizationwithwhichwholesalecustomerscanplaceorders,raisetroubleticketsandaccessbillingandperformancemanagementdata.Anonlinepricingtoolsupportsmanagedbandwidth,IPVPN,EthernetandInternetaccess,withtraceabilityfromquotetobill.

Partnerships: Very Strong VCShasextensivegeographicalnetworkcoverageandisinapositiontodelivernetworkservicesacrossEurope,Asia,Africa,theMiddleEastandAustralasia.ThecompanyisthuscapableofdeliveringservicestocustomersandpartnerssuchasOrange,BT,Telefonica,Etisalat,AT&T,Verizon,TelecomNewZealand,MTNandAirtel.VCShasastrongpartnershipstrategythroughwhichitextendsitsnetworkreachforwholesaleandenterprisecustomers.IthaseightIP/MPLSNNIswithpartnercarriers,includingChinaTelecomandChinaUnicom,whichmeansthatitisoneofthefewinternationalcarriersthatcanprovideextensiveMPLScoverageinChina,across200Chinesecities.VodafoneisalsopartofaGCC-widetelecomsconsortiumformedtobuildahigh-bandwidthregionaltransmissioncablesystemfortheMiddleEastregion.Thesystem,calledtheMiddleEast-EuropeTerrestrialSystem(MEETS),wasbothconceivedandco-promotedbyZain,du,VodafoneandZajil.

VodafonealsopartnerswithBSNLinAsia,OTEGlobeintheMediterraneanbasinandNorthAfrica,TelusandSprintinNorthAmerica,RogersinCanada,TelefónicainSouthAmerica,andTDCandBeelineintheNordicsandRussia,respectively.IthasanagreementtoshareaninternationalleasedlineacrosstheAAGcablebetweenHongKongandPLDT’scablelandingstationinBauang,LaUnion.

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© 2014 Current Analysis Inc. All rights reserved. For more information, please call +1 703 404 9200, toll-free +1 877 787 8947 Europe +33 (0) 1 41 14 83 15. Or visit our Web site: www.currentanalysis.com 4

Company Assessment

Vodafone Carrier Services (Continued)

J Perspective

Current Perspective: Positive WearetakingapositivestanceonVCS’wholesaleactivities,becausethecompanyhasmadesolidprogressintegrat-ingitsinternalorganizationalstructureandisnowtightlyfocusedonrelevantproductareassuchasvoice,IPX,SMShubbingandintelligentIProuting.Groupsynergiesareamajorstrengthforthecompany,withglobalopera-tions,networkassetsandskillsetsallestablished,andtremendousbuyingandsellingpowertoobtainthebestdealsandtoextendtoitspartnersandcustomerscompellingofferings.VCShasgoodpresenceinkeymarkets,includingEurope,theMiddleEast,Africa,AsiaandAustralasia.Ithasadifferentiatedpartnershipapproachtowholesalecustomers,whichfocusesongettingtoknowtheirbusinessesandtheirproductandserviceneedsandprovidingtailoredcustomersalesandservicepropositions.VCSisalsoexperiencedwithsupportingC7ISUPv2andotherprotocolssuchascallinglineidentity(CLI),originalcallednumber(OCN)andredirectednumber(RDN)infor-mationwithinitsinternationalmobile-to-mobileoffering.ThecompanyhasasolidMPLSofferandhascredibleAsiancustomerreferencesasaresultofextensivenetworkinvestmentintheregion.VCShasacompellingmanagedwholesaleIPVPNofferingandisinnovativewithproductbundling.Theoperatorisacceleratingitswholesaledatacentreandcloudservicesstrategy,whichwillhelpitopenupanewrevenuestream.

VCSfacesmanychallengesfromexternalsources,namelycompetitionandpricingpressure,andinternallyintermsofintegratingback-officesystems.CompetitionisintensefromEuropeanproviderssuchasColt,BICS,TSICandInteroute.Meanwhile,inAsia,VCSfacesTataCommunications,PCCWGlobalandChinesecarriersaswellaslongstandingplayerssuchasVerizon,AT&TandBT.IntheUK,companieswithgrowingnetworkfootprintssuchasVirginMediaBusinessandTalkTalkBusinessarechallengingintheareasofbasicvoiceanddataservices,EFMandsuperfastbroadband,whileBTWholesaleisdifficulttomatchforitsbreadthofofferings.

Ratings

J Strengths and Weaknesses

Strengths•VCShasemergedwithanewintegratedbusinessdivisionandaconcretefocusonrelevantproductareas.Twenty-sixoperatingcompaniesgivetremendoussynergiesandalargelocalaccessfootprint.

•TheintegrationoftheformerCWWintoVCScreatesasingleconsolidatedentitywithstrongglobalnetworkas-setsandasubstantialpresenceinEurope,Africa,theMiddleEastandAsia-Pacific.VCSisembarkingonanewpathwithverysolidbackingfromglobalandnationalassets,existingclientbasesandskilledstaff.Forexample,Asian

Market

Perspective

Market Perception

Momentum

Vision

Innovation

Wholesale Positive Positive Positive Positive PositiveEthernet Moderate Moderate Positive Positive Moderate

IP Services Positive Positive Positive Positive Positive

Managed Services Moderate Moderate Moderate Moderate Moderate

Mobile Wholesale Services Positive Positive Positive Positive Positive

Transport Positive Positive Positive Positive Positive

Voice Very Positive Very Positive Very Positive Very Positive Positive

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Company Assessment

assetsincludeitsbackhaulnetworkinHongKong,anextensiveIndianMSP-basednetwork,investmentinEIGandBBG,andNNIagreementswithleadingChineseoperators.

•VCScanbenefitfromanestablished,fruitfulpartnershipapproachandobjectiveoftailoringproductsandservicestothespecificneedsofhigh-valuecustomersinmanagedservicesdealswithTescoandMorrisonintheUK.VCS’managedservicesportfolio,skillsets,trackrecordandGlobalMarketsSolutionsCentreputitinagoodpositiontobuildasuccessfulandleading-edgemanagedservicesbusiness,targetingfurtherdomesticaswellasinternationalcarriercustomers.

•VCSiswellpositionedtomeetgrowingcablerequirements.Theoperatoralreadyhasasubstantialunderseacablenetworkandisinvestingingreatercapacity,includinganinnovativein-situupgradeontheApollocablefrom2Gbto10.5Gb,whichgivesthecompanyapotentialfuturecapacityof24Tboverthiscablealone.Thecarrierisamongtheworld’stopfourprovidersofglobalconnectivity,whichitisextendingwithinvestmentintheWACS,aregionalmarketinwhichthecompanyishistoricallystrong,andtheEIG.

•VCS’multi-serviceplatformtargetingUKfacility-basedcarriersenablesittoofferasingleSLAandguaranteedbandwidthregardlessofaccesstechnology.VCSalsohasopportunitiestocapitalizeonitspresenceinemergingmarketswherethereareoperatorslookingforall-IPtransformationpartners.

Weaknesses•TheintegrationoftheformerCWW’sinternationalwholesaleactivitiesintoVCSiscomplexanditwilltaketimeandattentiontointegratenetworks.Meanwhile,competitorswillseekanyopeningstoapproachcustomerswiththeirportfoliosandmessagesthattheintegrationmaycauseconfusionanddifficulties.

•VCSfacesstiffcompetitionfromserviceprovidersthathaveestablishedbrandsinthecarrier-to-carriersegment.

•VCShasyettoannounceaclearlydefinedproductsetwithbackingproductspecificationsheets.Thecarrierneedstomoverapidlytopresentitsrangeinthemainproductareasofmobile,data,cloudandcarrieroutsourcing.Incontrast,BICShasaclearmenuofserviceswithinits‘GlobalMobileVillage’concept,andseveralotherrivalsareaheadwithstrictlydefinedportfolios.VCSdoescommunicateseveralservices,butthereisalackoflaser-focusdetailabouteachtieratthisstage.

J Recommended Actions

Recommended Vendor Actions•VCScanbringtotheforeinitsmarketingmessagesthepositiveattributesthatcanbederivedfromnewsynergiesofscaleandsolidfinancialbacking(e.g.,VodafoneGroupinvestsaroundGBP6billioneachyearinthenetwork,andanadditionalinvestmentofGBP7billionisunderwaythrough‘ProjectSpring’).

•VCScandevelopabroadandthreateningservicerangeformobileproviderstochallengeBICS’strongpositioninthisfield.IPX,M2M,security,fulloutsourcingandinternationalLTEroamingareallhotproductareasthatVCScanpursuetobringinnovativeanddifferentiatedproductstomarket.LeveragingtheVodafoneGroupmobilesubsidiariesaroundtheworldtounderstandwhatMNOsreallyneedisanexcellentspringboardtomakeapushintothissegmentagainstexistingcompetitors.

•VCSshouldpromoteitsdeepaccessnetworksincountriessuchasGermany,Turkey,India,NewZealandandSouthAfricaalongsideitsstrongUKfootprintandadvancednext-generationserviceportfolio,includingEthernetservices,wholesalebroadbandandwholesaleIPVPN,toensurethatcarrierswithinternationalenterprisecustomerstoserveunderstanditsattractionsasanalternativetoBTWholesaleandotherincumbents.

Vodafone Carrier Services (Continued)

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Company Assessment

•VodafoneisinanidealpositiontooffersmallerMNOsfullymanagedconsultingandmobilevoiceandbackhaul.VodafonePartnerMarketshasaverystronglevelofexperiencehere,andtheprovidercandevelopcompellingsuitesforsmallerMNOsthatoperateinnicheandemergingmarketswhereVodafoneisnotpresent.

Recommended Competitor Actions•CompetitorsshouldemphasisethatVCSwillcontinuetobespendingtimeandattentiononintegratingdisparatesystems,andinthemeantime,buyinganumberofproductsfromthecompanymightnotgivethemostconvenientuserexperience–forexample,nosingleonlineportalacrossmultipleproductsets.

•ColtandInteroutecanhighlighttheirmoreextensiveEuropeannetworks,theirstrongEthernetandsoftswitchVoIPservicesandtheirstrategiesforwholesaledatacentre/cloudservicestocustomerslookingforpartnerswithapan-Europeanreach.Ethernet,inallitsguises,andcloudservicesaregrowingininterestamongcorporatedatausers,andColtandInterouteareinagoodpositiontofulfiltheneedateithertheretailorwholesalelevel.

•Level3shouldpointoutthatitisamatchforVCS’wholesaleactivitiesintheUKandinternationalmarkets;plus,ithasastrengthenedoverseasandUSfootprintviaLevel3.WithanextensiveUKnetworkandUS,LatinAmericanandAsianreach;astrongVoIPoffering;advancedmanagedservices;andcontentdeliverystrategies,Level3isastrongcompetitorforVCS.

•TataCommunicationsandotherAsia-PacificplayerscanpromotetheirnetworkfootprintinAsia-Pacificaswellastheirincreasingbreadthofcapabilities,particularlyinthevoice,Ethernetmanagedservicesandcontentdeliveryseg-ments.TataandBThavestrengthenedtheireconomiesofscaleinthewholesalevoicemarketthroughtheirrecentpartnershipagreement.

•TSICcanpointtofargreaterIPnetworkassetsandtrafficvolumescomparedwithCWWandnotethattheTSICrolloutof100GbpsservicesintheUSandavailableinpartsofEuropeprovidesdifferentiation.

•BTWholesaleshouldpromoteitsIPexchangecapabilities,whichprovidecustomers(andespeciallymobileopera-tors)withaconvincingTDM-to-IPmigrationstrategy,anditsWholesaleBroadbandConnectservicesandstrategyasanalternativetothemorelimited,thoughuncontended,speedsavailablefromVCS.BTWholesalecanpresentitsstrongabilitiesandoperationsresourcestodelivermanagedandoutsourcedservices.

Recommended End-User/Customer Actions•GlobalandregionalcarrierslookingforapartnerwithastrongnationalandregionalpresenceinEurope,theMiddleEast,Africa,Asia,NewZealandandAustraliacanevaluateVCS’footprintandexpansioninkeymarketssuchasSouthAfrica,India,HongKongandSingapore,whereitisinvestinginitsownnext-generationfacilities,anditspartnershipsinChina,Oman,VietnamandthePhilippines,aswellaswithTelekomMalaysia.

•Tier2/3AsianoperatorsseekingtodifferentiatethemselvesintheirdomesticmarketsshouldtalktoVCSaboutitsabilitytoprovidethemwithaninternationalnetworkfootprintaswellasastrongportfolioofmanagedservicesthatcanbetailoredfortheirlocalneeds.

•CarriersconsideringIPtransformationshouldinvestigateVCS’capabilitiesinthisarea,sinceithaswonamajorNGNbuildandoperatecontractforNationalGridandgaineditsowntransformationexperienceonwhichtodraw.

•UKfacility-basedcarrierslookingtobroadentheportfolioofservicestheycanoffertotheirenterprisecustomersshouldevaluateotheroperatorsandseekreassurancefromVCSthatwholesalewillremainanareaoffocus.

Vodafone Carrier Services (Continued)

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Company Assessment

J Fast Facts

Company Description

Network Description

Vodafone Carrier Services (Continued)

Company Name Vodafone Carrier Services

Company Type Global network operator

Headquarters Vodafone Group: London

Public/Private Public; LSE: VOD. NASDAQ: VOD

Revenue Vodafone Group: GBP 43.6 billion (year ending 31st March 2014)

Primary Markets Europe, Africa, the Middle East, the US and Asia-Pacific

Employees Vodafone Group 91,000 employees. Over 300 people are dedicated to VCS.

Target Customers Communications service providers, Internet companies, OTT players, mobile network operators, carriers (Tier 1s seeking route diversity, Tier 2/3 carriers looking for international networking partner) via the wholesale divi-sion

Key Customers Wholesale customers include BT, Amazon, Artel, AT&T, Bharti, BSNL, Completel, Deutsche Telekom, Etisalat, Google, Hellas Online, KPN/iBasis, MTN, Orange Business Services, Rostelecom, Seacom, Skype, SoftBank, Sri Lankan Telecom, Tata Communications, Telefonica, Telekom Malaysia, Verizon, Virgin Media

Sales Structure VCS operates a global account management structure for its top 50 customers with dedicated local account management teams serving the remaining 1,000+ named communication service providers. Customer ser-vice and support is structured in a similar way.

Service Lines Carrier voice/VoIP, voice transit, IP transit, IPX, bandwidth, Ethernet, IP VPN with five classes of service, MPLS, WLR, indirect access, directory inquiry services, local access, hosting, managed applications. VCS of-fers four wholesale voice offerings: GVI, mobile to mobile, TDM switched interconnect and route access.

Geographic Network Coverage

1 million km global network (including submarine and terrestrial), 562 PoPs across 76 countries.Investor in 80+ cables globally, including Apollo, EPEG, Europe India Gateway, APCN2, West Africa Cable System and BBG (Bay of Bengal Gateway).

Fixed/Wireline Network IP/MPLS multi-service platform (MSP) network based on Alcatel-Lucent 7750 Service Router and 5620 Service Aware Manager products. Plans to move to a multi-vendor environment.

Mobile/Wireless Network Wireless footprint that includes more than 80 countries (including its own equity interests in more than 30 operating companies, affiliates, and joint ventures, as well as more than 50 partner networks)

Expansion or Upgrade Plans

Major plans include integrating networks in Africa, Europe and India together with the expansion of the network in India and participation in the EIG upgrade.

Network Operation Center (NOC)

Europe (the UK, Germany, Portugal) and India (Bangalore, Pune, Chennai)

Data Centers 14 data centres in the UK and Ireland as well as South Africa and expansion into Germany; plus access to 100 data centres globally

Support Centers India (Pune & Bangalore), 24x7 multi-lingual support centre for global carrier customers; Hong Kong, a 24x7 multi-language (North Asian languages) centre for Asian customers. Global service delivery teams in India (Bangalore) and the UK manage the backend processes and handle all customer requests cen-trally.

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Company Assessment

Vodafone Carrier Services (Continued)

Select Customer Wins

Key Partnerships and Alliances

Date Customer Commentary

June 2013 Numeric Futures A focus on inbound voice traffic both nationally and internationally

July 2013 Digicel Bilateral contract for international termination of traffic in 39 countries

July 2013 Telus Agreement for bilateral international voice traffic, terminating traffic between North America and the UK

May 2014 SFR France Expansion of existing partnership, which includes IPX Interconnect agreement

June 2014 Telenor Global Services IPX Interconnect agreement

Partner Description

EPEG Consortium Vodafone is an investor in the EPEG Consortium, which is the first terrestrial high-capacity cable between Europe and the Middle East that avoids the Suez Canal and Egypt. The $150 million project was com-pleted in December 2012.

BBG Consortium Vodafone is a member of the BBG Consortium. The submarine cable system, spanning 8,000 km, will provide a low-cost, low-latency route for communications traffic between Southeast Asia, India and the Middle East.

MPLS NNI partnerships These include China Telecom and China Unicom for MPLS coverage across 200 Chinese cities; Telefonica; Vimpelcom in Russia; Batelco and Tawasul in the Middle East; SoftBank in Japan; and Telekom Malaysia.

MEETS consortium Middle East-Europe Terrestrial System – subsea capacity and capacity via a power cable.