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Vodafone's Key
Milestones
1980: Sir Ernest Harrison OBE,
chairman of Racal Electronics plc's, the UK's largest maker of military
radio technology, agreed a deal with Lord Weinstock of General Electric
Company plc to allow Racal to access some of GEC's tactical battlefield
radio technology. Briefing the head of Racal's military radio division Gerry Whent to drive the company into commercial mobile radio, Whent visited GE's factory in Virginia, USA in 1980.[10]
1982: Racal's newly formed subsidiary Racal Strategic
Radio Ltd under CEO Whent, won one of two UK cellular telephone network
licences; the other going to British Telecom[11][12] The network, known
as Racal Vodafone was 80% owned by Racal, Millicom with 15% and Hambros
Technology Trust 5% respectively.
1985: Vodafone was launched on 1 January 1985.[13] Racal
Strategic Radio was renamed Racal Telecommunications Group Limited in
1985.[12]
1986: On 29 December 1986, Racal Electronics bought out the
minority shareholders of Vodafone for GB£110 million.[14] Under
stock market pressure to realise full value for shareholders (the
mobile unit was being valued at the same amount as the whole Racal
group).
1988: September 1988, the company was again renamed Racal
Telecom, and on 26 October 1988, Racal Electronics floated 20% of the
company. The flotation valued Racal Telecom at GB£1.7
billion.[15]
1991: On 16 September 1991, Racal Telecom was demerged from
Racal Electronics as Vodafone Group.[16]
1996: In July 1996, Vodafone acquired the two thirds of Talkland
it did not already own for £30.6 million.[17] On 19 November
1996, in a defensive move, Vodafone purchased Peoples Phone for
£77 million, a 181 store chain whose customers were
overwhelmingly using Vodafone's network.[18] In a similar move the
company acquired the 80% of Astec Communications that it did not own, a
service provider with 21 stores.[19]
1997: In 1997, Vodafone introduced its Speechmark logo, as it is
a quotation mark in a circle; the O's in the Vodafone logotype are
opening and closing quotation marks, suggesting conversation.
1999: On 29 June 1999, Vodafone completed its purchase of
AirTouch Communications, Inc. and changed its name to Vodafone Airtouch
plc. Trading of the new company commenced on 30 June 1999.[20] To
approve the merger, Vodafone sold its 17.2% stake in E-Plus
Mobilfunk.[21] The acquisition gave Vodafone a 35% share of Mannesmann,
owner of the largest German mobile network. On 21 September 1999, Vodafone agreed to merge its U.S. wireless assets
with those of Bell Atlantic Corp to form Verizon Wireless.[22] The
merger was completed on 4 April 2000. In November 1999, Vodafone made
an unsolicited bid for Mannesmann, which was rejected. Vodafone's
interest in Mannesmann had been increased by the latter purchase of
Orange, the UK mobile operator.[23] Chris Gent would later say
Mannesmann's move into the UK broke a "gentleman's agreement" not to
compete in each other's home territory.[24] The hostile takeover
provoked strong protest in Germany, and a "titanic struggle" which saw
Mannesmann resist Vodafone's efforts. However, on 3 February 2000, the
Mannesmann board agreed to an increased offer of £112bn, then the
largest corporate merger ever.[24] The EU approved the merger in April
2000. The conglomerate was subsequently broken up and all manufacturing
related operations sold off.
2000: On 28 July 2000, the Company reverted to its former name, Vodafone Group plc.
2001: In April 2001, the first 3G voice call was made on
Vodafone United Kingdom's 3G network.In 2001, the Company took over
Eircell, then part of eircom in Ireland, and rebranded it as Vodafone
Ireland. It then went on to acquire Japan's third-largest mobile
operator J-Phone, which had introduced camera phones first in Japan. On
17 December 2001, Vodafone introduced the concept of "Partner
Networks", by signing TDC Mobil of Denmark. The new concept involved
the introduction of Vodafone international services to the local
market, without the need of investment by Vodafone. The concept would
be used to extend the Vodafone brand and services into markets where it
does not have stakes in local operators. Vodafone services would be
marketed under the dual-brand scheme, where the Vodafone brand is added
at the end of the local brand. (i.e., TDC Mobil-Vodafone etc.)
2008: Vodafone acquired an additional 15% stake
in Vodacom Group (Proprietary) Limited (“Vodacom Group”) from Telkom SA
Limited (“Telkom”) for a cash consideration of ZAR22.5 billion
(c.£1.4 billion) less the pro rata consolidated attributable net
debt of Vodacom Group of approximately ZAR1.55 billion (c.£0.1
billion). The transaction increased Vodafone’s shareholding in Vodacom
Group from 50% to 65%. Vodacom Group was listed on the Johannesburg
Stock Exchange (“JSE”) and the remaining 35% of Vodacom Group was
demerged by Telkom to its shareholders.
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