Vodafone looks to smartphones for increased revenue

The operator thinks up to 40 percent of phones sold will soon be smartphones

Vodafone reported Thursday that revenue from data services exceeded £1 billion (US$1.58 billion) for the first time during the last three months of 2010, but that only partially helped offset lower voice revenue.

The mobile service provider reported revenue of £11.5 billion, a year-on-year increase of 10.3 percent, for its fiscal third quarter, which ended Dec. 30.

However, organic growth -- which excludes favorable exchange rates, for example -- was down 2 percent, according to Vodafone. It does not report profit on a quarterly basis.

Still, the results represents a good step forward, Vodafone CEO Vittorio Colao, said during a conference call.

Data revenue continues to grow, and organic mobile Internet revenue was up by 27 percent in Europe between October and December. But today that only partially offsets lower voice revenue, which continues to be impacted by market and regulatory pricing pressures, according to Vodafone.

Data revenue is driven by connected laptops and smartphones. During Vodafone's fiscal third quarter 25 percent of the phones it sold were smartphones, compared to 20 percent during the second quarter. That share will continue to grow, according to Colao, and its data revenue along with it.

During Vodafone's fiscal 2010 and 2011, which starts April 1, the share will grow to between 30 and 40 percent, he said.

Today, data revenue represents about 10 percent of Vodafone's total service revenue, compared to approximately 70 percent for voice.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags smartphonesVodafonemobile datamobile services

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?