Vodafone Australia (situation Analysis).

Essay by zagapoUniversity, Bachelor's September 2003

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1.1 Introduction

The mobile telecommunications industry in Australia has grown rapidly. The mobile penetration rate as at February 2002 was approximately 62 per cent, which represented more than 12 million mobile customers in Australia (vodafone.com.au 2003). And according to the Australia Telecommunications Industry Reports did by BuddeComm (2003), the services market will increase by 6% this year and a similar growth is predicted for 2004; this resonates the fact that mobile phone services in Australia is highly competitive and stilling growing fast.

This paper is written intended to obtain a better understanding as well as to analysis the current situation of our selected brand: Vodafone Australia.

1.2 Company Overview

Wholly owned by UK-basedVodafone Group, Vodafone Australia is the third largest mobile carrier in Australia after Telstra and Cable and Wireless Optus (Singtel). It was awarded the third Australian mobile telecommunications carrier licence in December 1992. In September 1993 the company began providing GSM mobile telecommunication services with network coverage in Sydney, Melbourne and Canberra.

By March 1994, the mobile network was extended to the cities of Brisbane, Adelaide and Perth.

Vodafone Australia operates a GSM digital mobile network that covers 92 per cent of the Australian population. Vodafone's Globalstar satellite service, launched in May 2000, offers 100 per cent geographic coverage of Australia with an integrated GSM/satellite handset.

The company offers GPRS (General Packet Radio Services) on the network to its customers and continues to upgrade its network to allow the company to deliver mobile Internet services at data transmission speeds which are significantly faster than the existing GSM networks can deliver.

In March 2001, the company bid $253.5 million to secure a national licence of 2 GHz spectrum for the delivery of third generation (3G) mobile telephony services.

Vodafone Australia has more than 2 million customers,