Vodafone Strategic Plan

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VODAFONE’S STRATEGIC AUDIT

External Environmental Analysis: PEST ANALYSIS

Political factors
Vodafone is generally subject to regulations governing the operation of its business activities. Such as industry specific laws and regulations covering telecommunications services and general competition (antitrust) laws applicable to all activities. Most member states of the EU have now implemented the EU Regulatory

Framework for the communications sector, adopted in 2002. It aims to encourage competition in the electronic communications markets, to improve the functioning of the single market and to guarantee basic user interests that would not be guaranteed by market forces6. The impact of EU Framework on Vodafone was significant. After member states of the EU enacted national laws implementing the EU Framework, Vodafone had to reduce its mobile phone termination rates considerably

Spectrum liberalization has been one of the key issues in mobile regulation for a number of years. At its heart is the simple proposition that markets, rather than regulators, are better placed to decide the most efficient use of the spectrum. In September 2005, the European Commission published proposals for spectrum reform across the EU, including proposals to allow holders of spectrum greater flexibility on the use to which it is put, to allow holders to trade spectrum within a spectrum market and to improve harmonization of certain bands.

Regulation, which seeks to reduce by up to 70% of the charges consumers have to pay for using their mobile phone abroad9. These proposals came into force on 30 June 2007. The regulation requires mobile operators to offer a ‘Euro‐tariff’ under which the cost of making calls within the EU is capped at 49 eurocents and the cost of receiving calls within the EU is capped at 24 eurocents.

Economic factors
The most common indicator for measuring a nation’s economic activity is gross domestic product (GDP). This indicator covers the

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