For more information, contact:

Kirsten Fischer, Senior Marketing Manager
Phone: 480-609-4534; Email: kirsten.fischer@reedbusiness.com

Vodafone, World’s Largest Multi-National Wireless Phone Network Provider, Faces Burgeoning Threats That Must Be Addressed Soon

SCOTTSDALE, Ariz., December 17, 2004 - Vodafone, the largest operator of multiple, multi-national wireless networks in the world, faces tough challenges to protect its turf, reports In-Stat/MDR (http://www.instat.com). Vodafone faces the twin tasks of extracting greater and greater efficiencies in the mostly mature markets in which it operates, while at the same time fending off competitors who are employing many of the same techniques that brought Vodafone to the forefront in the first place.

What is not yet obvious, but what will become apparent over the next two to three years, is what Vodafone is prepared to do to protect its position from encroachment by these challengers. Vodafone offers services to more than 139 million customers in 26 different countries around the world. The company has reached this position through a process of skillful acquisitions of networks in different countries, and strong management skills and operational techniques that have allowed it to build out wireless networks that are highly competitive.

A recent report by the high-tech market research firm also found the following:

• The cost of Vodafone’s growth through acquisition is estimated to top $270 billion (225 billion Euros) over the last five years.
  
• Vodafone has an 18 to 24 month window in which it can still enter Latin American markets and use its deep bank accounts and purchasing power to build out modern networks to compete with other operators there.
  
• Perhaps the company’s greatest weakness is its exposure to maturing markets, where commoditization of wireless services is a growing trend that will grow over time, particularly in Europe.

Recent In-Stat research, Vodafone: Success Secrets of the Global Operator (#IN0401855GM), which examines Vodafone’s market position, assesses its strengths and weaknesses, and explains the threats the operator faces, how it must respond to those threats, and where opportunities for future growth will come from.

For more information, contact:

Ken Hyers, Senior Analyst
Phone: 617-558- 4528
Email: khyers@reedbusiness.com

Kirsten Fischer, Senior Marketing Manager
Phone: 480-609-4534
Email: kirsten.fischer@reedbusiness.com

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