Vodafone cutting costs and starts restructuring business operations

Mobile service providers Vodafone has said that they are planning to bring some restructuring procedures to cut costs in operations. They unveiled a new group structure on Thursday aligned to its key challenges. This includes cutting costs, boosting growth in emerging markets and expanding their services by introducing newer technologies.

The company is facing saturation in some of their primary markets, which in the end hampers growth. Vodafone said that the operations would now be managed through three new business units — Europe; Central Europe, Middle East, Asia Pacific and Affiliates; and New Businesses and Innovation.

Market analysts believe that the company is doing well by concentrating on new technologies such as convergence services, which link mobile and fixed-line devices, and Internet services. They also believe that Vodafone might suffer in the coming years, as they are not present in the growing market for fixed line services.

A Vodafone spokesman said: “I wouldn’t necessarily jump just to the conclusions that we ourselves will be pulling loads of fixed-line business. It may be that we partner up with someone else who already does that. It’s all highly speculative at this stage.”

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