Feeds

Vodafone eyes annual savings of £2.5bn

Squeeeeze the suppliers

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

Vodafone is to cut costs by £2.5bn per year by March 2008. It will do this a combination of £1.4bn through cost-saving measures and £1.1bn through revenue initiatives.

The mobile network operator will exploit its size to buy in bulk, and will generate additional revenue by eliminating duplicated effort. In other words, the handset makers and network equipment vendors are in for years of tough negotiations.

The company told analysts and investors today that it will employ a "build once, deploy many times" development strategy to reduce time-to-market on new services. It aims to reduce mobile capital expediture to less than 10 per cent of mobile revenue by 2008.

Arun Sarin, chief executive, reiterated guidance for the financial year, saying that he expected to generate £7bn in free cash flow, this year. Some of this will go into increasing dividend payments - more information is promised in November to accompany the publication of half-yearly results.

The money will also come in useful for acquisitions: Voda remains interested in acquisitions in France, eastern Europe, Asia and Africa, Sarin said. ®

Related stories

O2 shuns 3G hype
Voda plays Santa with 3G bonanza
Vodafone to bring Blackberry 'Charm' to Europe

Related link

Vodafone's last annual report is here (pdf).

Beginner's guide to SSL certificates

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.