1.

Vodafone do to accelerate data growth in the coming year:

Accelerated data growth happens at consumer level by increasing data
experience through personalized products and services. Service providers
can bundle base services with value added components i.e. full talk time
schemes can provide additional data usage. For post-paid users increase
in monthly allowance of data usage (trade-off between SMS or Call rates).
Accelerating data growth starts with increasing the network availability by
Wi-Fi based services, DAS, Optic fiber, etc., and increasing infrastructure
capabilities like improving long-term spectrum availability, spectrum
efficiency and effective fall back for better availability and quality
connections.
Vodafone can partner with OTT
content providers to enable their customers to access content for free.
Video services, a major component for data growth can be bundled with
unlimited data packs and using tiered data prices for heavy data users
increases ARPU. Providing services beyond basic connectivity like multiple
device plans for multi-device data users increases Vodafones reach.
Introducing data sharing gives multiple users on a single account access
to one data plan (similar to talk time sharing). Providing customized option
for consumers to set limit on data usage by various applications (phone
pass) and drive data through repeat purchases. Smartphones are drivers
of data usage, Vodafone can couple expensive plans with high end
smartphones in the market. Focus on rural segment with just 48%
penetration by low cost 2G services will accelerate the growth due to mass
usage.
2. Vodafone attract data consumers in the rural space and emerge as the leader
in incremental data revenue growth in these markets:

Network coverage is an important issue faced in rural areas so active and

passive sharing of infrastructure, building network infrastructure through
funds like USOF to increase 2G/3G experience in rural markets in order tap
high potential first time data user segment. Reason for low adoption is the
perception of high cost, complexity and low utility giving free data with
recharge coupons and make them experience and selling simple low
priced data packs along with lowering upfront cost (pay as you use).
Availability of locally relevant information
(Regional language based apps) to local population drives data in this
space. Contextual and personalized promotion of localized content and
apps holds the key here. Enhance various human touch points to provide
services by tie-ups with FMCG distribution network in these markets.
Alliances with companies who rely on rural resource/labor eg.e-choupal to
support the network functionalities. Service providers can strengthen
position by participating in local fairs and venturing in micro-commerce.
Services and advertising for this segment can be on informative basis
rather than on aesthetic basis as they are price sensitive and utility
conscious.
How does Vodafone appeal to all subscribers across the spectrum- 2G/ 3G/ 4G?

Vodafone can appeal to each of these spectrum as it carters to the needs of

different target groups
2G: Vodafone can focus on the limited usage customers as well as rural
customers, less competitive.
Cost, Coverage, 2G only handsets and low utility are the barriers for the
segment. The focus must be in providing low cost bundles of 2G internet as well
as by providing utility based VAS like M-Commerce, etc. 2G networks can also be
repositioned as machine-to-machine (M2M) and Internet of Things (IoT)
networks. It must concentrate to improve the coverage in low adoption category
C markets where the 2g adoption rate is high.
3G: Focus will be on providing standard and quality speed at optimal price.
Quality of the service must be of the focus with lesser call drops and buffering.
This market would be stable in future and high margin due to the competition
shift after the 4g development. Wide range of the bundles must be done as well
as VAS like M-Commerce, Video on demand, etc., which will drive ARPU.
4G: Focus must be on high speed internet with a 3G fall back. Initial broad range
of low cost bundles must be introduced to target the 3G to 4G shift with low
switching cost. The negative returns, competition and low ARPU must be tackled
with Value added services like Video and music on demand services to the
customers. Optional 4G upgradation plans for the experience. Develop fixed
devices like Dongle and Wi-Fi services for 4g to develop services.

4) What differentiated strategy should VF deploy in its leadership and challenger

markets ?

Dominant market: In the dominant markets the focus must be on increasing

margins (High ARPU) by introducing wide range of bundles across categories
(combining Voice, Data, VAS, etc.) The service must shift from cost based
leadership to network quality based leadership. Personalized services and tiered
pricing strategy can be done for increasing the market profitability. Investment in
alternate technologies like DAS, fiber optics, Wi-Fi networks for faster
connections in dominant metros like Mumbai. In current dominant markets like
Gujarat, Maharashtra (category A) faster and low cost roll out of 4G for easy
customer shift. Focus can be acquisition of large scale industrial customers in 3G
and 4G market in order to increase the ARPU.
Challenger markets: Direct low price strategy will lead to collusion with
competitor and leads to decreased profit margins. Differentiating strategy
focusing on underserved groups based on a review must be done. For high
potential markets like UP, Bihar etc. simple low price schemes of lower usage for
customer acquisitions (First time customers-2G focus) and acquisition of
additional spectrum as they are potent markets. For saturated markets like
Karnataka etc., focus on 4G roll out for higher customer acquisitions. For low
potential markets like Assam, Himachal, etc., a review the cost structure to
become leaner and cooperation between other service providers for additional
coverage.

5. Data landscape 2 years from now and how should VF gear up to win in that
scenario:

The number of 4G enabled handsets would have increased and the initial
low price strategy of 4G would have diminished so providing network
quality as well as network coverage will be important factor for the
network to be viable and attract customers in 4G services
Low quality data services and buffering would increase the customer
switching networks so micro level network devices like small cell, DAS etc.,
must be availed to plug the network gaps.
Usage of internet using stationary devices like Wi-Fi will increase so
providing network facilities through those personalized platforms is
important.
Introduction of Internet of things into the ecosystem will increase the
network utility thus the Vodafone must be equipped to handle it. The
accessory services like cloud services and data analytics will be in a
developing phase in India so development of capabilities in this sector is
important.
Gradual shift from the 2G services to 3G services as the core service by
shifting the 2G customers to 3G using low price and differentiation
strategies.
As the data market will be increasingly saturated network quality would be
an important factor for customer switching and it will be a more driving
force for network consolidation. Improved growth through Spectrum and
other player acquisition is also important for spectrum as well as
subscriber consolidation