This glossary has been prepared to assist our shareholders’ understanding of the most common acronyms and technical terms in listed companies and telecommunications sector.

A&R
Acquisition and retention costs. Total costs incurred by operators to acquire and retain customers. See also acquisition costs, SAC and retention costs.

Acquisition costs
The total of connection fees, trade commissions and equipment costs relating to new customer connections. See also SAC.

Active data users
Customers who have used a data service in a given period.

Adjusted EPS
Adjusted earnings per share is the total adjusted profit of the Group attributable to equity shareholders divided by the weighted average number of ordinary shares in issue. Adjusted earnings per share excludes non-operating income of associates, impairment losses, restructuring costs, and other income and expense as well as amounts in relation to equity put rights and similar arrangements and certain foreign exchange rate differences, together with related tax effects. See also 'EPS'.

ADR
American depositary receipts are US dollar denominated equity shares of non-US companies issued by depository banks for US markets. The main purpose is to create an instrument which can easily be settled through US stock market clearing systems.

ADS
America depositary shares are the individual shares related to the issue of America depositary receipts. ADSs are issued by a depositary bank and represent one or more shares of a non-US issuer held by the depositary bank. The main purpose of ADSs is to facilitate trading in shares of non-US companies in the US markets and, accordingly, ADRs which evidence ADSs are in a form suitable for holding in US clearing systems.

AGM
Annual general meeting of a company’s shareholders.

AMAP
Africa, Middle East and Asia Pacific region, comprising of the Group's interests in Australia, Egypt, Ghana, Kenya (associate), India, New Zealand, Qatar and the Vodacom Group. For the year ended 31 March 2014, AMAP accounted for 34% of Group revenue.

Amortisation
An accounting concept that spreads the cost of intangible assets excluding goodwill (licenses, spectrum, computer software) across their useful economic lives, with a charge recorded in each accounting period of their use. Vodafone includes the profit and loss on disposal of computer software within its amortisation charge.

AMPU
Average margin per user, calculated by dividing attributable revenues less attributable costs (excluding operating expenses) by the average number of customers in the period.

AOP
Adjusted operating profit. Group adjusted operating profit excludes non-operating income of associates, impairment losses, restructuring costs, other income and expenses and amortisation of customer bases and brand intangible assets

App
Programs that can be downloaded onto smartphones and vary in function.

ARPU
Average revenue per user is an industry KPI calculated by dividing revenue by the average number of customers in the period. Revenue comprises: service revenue excluding fixed line revenue, fixed advertising revenue, revenue related to business managed services and revenue from certain tower sharing arrangements.

Backhaul
Connections linking access networks to the core network.

Bandwidth
The width of the frequency band used to transmit data. Broader widths give faster connections.

Base station
A unit functioning as a transmitter and receiver for a mobile network. See also ‘tower’.

BSS
Billing support system

Bundle
A collection of services, e.g. voice, SMS and data allowances, included within one price.

Buyback
See share buyback

Capital expenditure
Capital expenditure (‘capex’) is the aggregate of capitalised property, plant and equipment additions and capitalised software costs.

Carrier services
The sale or lease of bandwidth to another provider for reselling to their own customers

CDMA
Code-division multiple access refers to any of several protocols used in 2G and 3G communications. It allows numerous signals to occupy a single transmission channel, optimising the availability of bandwidth.

Cell
Term used to describe the area of radio operation or coverage from a base station.

Charge to bill
Vodafone’s service that allows users to pay for apps by charging their Vodafone account. See also ‘operator billing’.

Churn
Total gross customer disconnections in the period divided by the average total customers in the period.

Cloud services
A set of servers, storage and software applications run as a shared capability delivering services to the end user over the network (private or public). This means the customer has little or no equipment at their premises and all the equipment and capability is run from the Vodafone network instead. This removes the need for customers to make capital investment and instead they have an operating cost model with a recurring monthly fee.

Contract (postpaid)
Customers who subscribe for the provision of a bundle of services for a recurring (usually monthly) fee, paid in arrears. See also ‘postpaid’.

Core network
The central part of a telecommunications network, connecting access networks and base stations.

Customer costs
Customer costs include acquisition costs (being the total of connection fees, trade commissions and equipment costs relating to new customer connections) and retention costs (being the total of trade commissions, loyalty scheme and equipment costs relating to customer retention and upgrades) as well as expenses related to ongoing commissions.

Data attach rates
The number of complementary data plans sold as a percentage of data capable handsets.

Depreciation
An accounting concept that spreads the cost of property, plant & equipment across its useful economic life, with a charge recorded in each accounting period of the asset’s use. Vodafone includes the profit and loss on disposal of property, plant and equipment within its depreciation charge.

Direct costs
Direct costs include our own network, the costs of delivering calls to other networks (‘interconnect costs’) and other direct costs of providing services.

DSL
A digital subscriber line which is a fixed broadband service over copper lines.

EBITDA
Earnings before interest, tax, depreciation and amortisation is the Group's operating profit excluding its share in results of associates, depreciation and amortisation, gains/losses on disposal of fixed assets, impairment losses, restructuring costs and other operating income and expense. The Group's definition of EBITDA may not be comparable with similarly titled measures and disclosures by other companies

EDGE
An advanced version of GPRS called enhanced data rates for GSM evolution (‘EDGE’). This provides download speeds of up over 200 kbps to customers. Sometimes referred to as 2.5G.

Emerging markets
For Vodafone these are the markets in India, Vodacom, Egypt, Turkey, Ghana, and Qatar.

Enterprise
The Group’s business customer segment.

EPS
Earnings per share is the total profit of the Group attributable to equity shareholders divided by the weighted average number of ordinary shares in issue. See also 'adjusted EPS'.

ERP system
Enterprise resource planning system

Ex dividend date
Shareholders need to own shares before the ex dividend date in order to receive the declared dividend. For the period between this date and the dividend payment date, share prices are quoted as ‘ex dividend’. If shareholders sell their dividends in this period they are still entitled to the dividend payment but buyers are not.

FCA
Financial Conduct Authority, the UK's securities regulator focusing on companies that issue securities such as shares and bonds.

FDD
Frequency division duplex is a method of transmission where a distinct frequency channel is assigned to both the transmitter and the receiver. Uplink and downlink traffic can transmit simultaneously. See also TDD.

Final dividend
The dividend recommended by the directors for shareholders’ approval at the AGM.

Fixed broadband customer
Defined as a physical connection or access point to a fixed line network.

FRC
Financial Reporting Council, the UK’s independent regulator for corporate reporting and governance.

Free cash flow
Operating free cash flow after cash flows in relation to taxation, interest, dividends received from associates and investments and dividends paid to non-controlling shareholders in subsidiaries but before license and spectrum payments.

FTCO
From the central office

FTTC
Fibre to the cabinet

FTTH
Fibre to the home

GHz
A billion hertz, a measure of frequency or cycles per second.

Goodwill
An intangible asset recognised onacquisition of a business, representing the amount by which the purchase price exceeds the aggregate of the fair value of the identifiable assets and liabilities acquired.

GSM
Global system for mobile technology used by Vodafone in all its markets.

GPRS
General packet radio services used in 2.5G. See EDGE.

Hertz
Measure of frequency or cycles per second. Usually measured in millions as Megahertz (MHz) or billions as Gigahertz (GHz).

Hosting
Providing users space on a server, typically in a data centre

HSDPA
High speed downlink packet access is a wireless technology enabling theoretical download speeds of up to 43.2 Mbps, providing customers with voice, video telephony, multimedia messaging and high speed data services.

IFRS
International Financial Reporting Standards used by Vodafone.

Impairment
A downward revaluation of an asset.

Incoming revenue
Incoming voice revenue is generated when a Vodafone mobile customer receives a call from a user on another fixed or mobile network. Fees classified as incoming voice revenue are generally not charged to the Vodafone customer receiving the call but, rather, the telecommunications company that routed the call to the Vodafone network. These fees are generally determined by MTRs.

Indus Towers
Indian tower company jointly owned by Vodafone Group Plc (42%), Bharti Airtel (42%) and Idea Cellular (16%). It is the largest tower company in the world.

Instant messaging
Internet based communication offering instantaneous transmission of text messages and other content.

Institutional investor
Large financial institutions, such as a bank, insurance company, pension fund or investment trust that hold stock and shares in other companies.

‘in the cloud’
Where the customer has little or no equipment at their premises and all the equipment and capability is run from the Vodafone network instead.

Interconnect costs
A charge paid by Vodafone to other fixed line or mobile operators when a Vodafone customer calls a customer connected to a different network. See also MTRs.

Interim dividend
A dividend declared part way through a company’s financial year.

IOT
Inter operator tariff is an interconnection fee paid by a telco to another overseas telco.

IP
Internet protocol is the method by which data is sent from one computer to another on the internet.

IPVPN
IP virtual private network

IT stack
Comprises all the IT software and applications that are required to support a business process or processes

ISDN
Integrated services for digital network is the communication standard for simultaneous voice and other network services over the traditional public switched telephone network. It is gradually replaced by the internet protocol (see IP).

KDG
A cable operator in Germany, acquired by Vodafone in 2013.

KPI
Key performance indicator.

LAN
A local area network supplies networking capability to a group of computers in close proximity to each other.

LTE
Long-term evolution is a 4G technology.

M2M
Machine-to-machine communications, or telemetry, enable devices to communicate with each other via built in mobile SIM cards.

Mark-to-market
Valuing assets and liabilities on their current market price (also known as fair value accounting).

Market capitalisation
Value at current market prices of a company’s equity capital. It is calculated by multiplying the current share price by the number of ordinary shares in issue.

Mbps
Megabytes per second, a measure of data transfer speed.

MHz
A million hertz, a measure of frequency or cycles per second.

Mobile broadband
Browser based access to the internet or web applications using a ‘dongle’/data card and a laptop computer.

Mobile customer
Defined as a SIM (or in territories where SIMs do not exist, a unique mobile telephone number) which has access to the network for any purpose, including data only usage, except telemetric applications.

Mobile internet
Browser based access to the internet or web applications using a mobile device.

Mobile penetration
Number of mobile customers in a country expressed as a percentage of the country’s population (can exceed 100% due to customer’s owning more than one SIM).

M-Pesa
Our propriety mobile money transfer service, which allows customers to send and receive money, pay bills and buy airtime using their mobile phone. The Group has over 18.5 million active users (September 2014).

MoU
Minutes of use is the average minutes of use per customer.

MTR
Mobile termination rates are charges paid by a telecommunications network operator when a customer makes a call to another mobile or fixed line network operator.

MVNO
Mobile virtual network operators are providers of mobile phone services that do not have their own licence of spectrum or the infrastructure required to operate a network.

Net adds
The number of new customers acquired less the number of customer leaving during the period.

Net debt
Long-term borrowings, short-term borrowings and mark-to-market adjustments to financial instruments less cash and cash equivalents.

NGA
See NGN

NGN
Next generation access fixed networks. Typically offer higher speed internet connections than current generation access fixed networks such as ADSL. We provide NGN services over a range of technologies include FTTH, cable, VDSL-FTTC and VDSL-FTCONPS

NPS
Net promoter score is a customer loyalty metric used to monitor customer satisfaction.

On-net
Traffic that both starts and ends on a Vodafone network.

One Net
Vodafone One Net is a fixed mobile converged solution offering customers integrated landlines and mobiles alongside a wide range of business tools. The service is currently live in six markets with plans to expand into a further five markets by the end of 2012 and a further three by the end of 2013.

Ono
A cable operator in Spain, acquired by Vodafone in 2014

Operating expenses
Operating expenses comprise primarily network and IT related expenditure, support costs from HR and finance and certain intercompany items.

Operating free cash flow
Cash generated from operations after cash payments for capital expenditure (excludes capital license and spectrum payments) and cash receipts from the disposal of intangibles assets and property, plant and equipment.

Operator billing
Vodafone’s service that allows users to pay for apps by charging their Vodafone account. See also ‘charge to bill’.

Ordinary shares
Shares that confer ownership in a company, carry voting rights and entitle owners to dividends if declared by the company.

Organic growth
Presents performance on a comparable basis in terms of merger and acquisition activity, movements in foreign exchange rates and other one-off items.

OTT
‘Over-the-top’ applications and services refer to the delivery, via communication devices, of content without the direct involvement of the service provider.

OSS
Operation support system.

Outgoing voice
Fees charged to a Vodafone mobile customer who initiates a call.

Partner markets
Markets in which the Group has entered into a partnership agreement with a local mobile operator enabling a range of Vodafone’s global products and services to be marketed in that operator’s territory and extending Vodafone’s reach into such markets.

Peering
The arrangement of settlement-free traffic exchanges between Internet service providers

Penetration
Number of SIMs in a country expressed as a percentage of the country’s population (can exceed 100% due to customer’s owning more than one SIM).

Petabyte
A measure of data usage (equal to a million gigabytes).

Ppt
Percentage points.

Postpaid
Customers who subscribe for the provision of a bundle of services for a recurring (usually monthly) fee, paid in arrears. See also ‘contract’.

PRA
Prudential Regulation Authority, responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms.

Prelims
Preliminary results announcement is the first release of a company’s audited financial results for the financial year.

Prepaid
Customers who purchase services with a set unit price against a prepaid credit on their account, which they can ‘top-up’.

Pro-forma growth
Organic growth adjusted to include acquired businesses for the whole of both periods.

Project Spring
Project Spring is our organic investment programme that will see us spend £19 billion over two years. It will enable us to accelerate and extend our strategic priorities through investment in mobile and fixed networks, products and services, and our retail platform, to strengthen further our network and service differentiation

RAN
The radio access network is part of a mobile telecommunications system which conceptually sits between the mobile phone and the base station.

Record date
The date on which an investor must be recorded as an owner of shares to qualify for a forthcoming dividend or share distribution.

Red
Vodafone Red is our worry-free consumer proposition that offers unlimited calls and texts with generous data allowances.

Reported growth
Reported growth is based on amounts reported in pounds sterling as determined under IFRS.

Retention costs
The total of trade commissions, loyalty scheme and equipment costs relating to customer retention and upgrade.

Rights issue
Offer of shares to existing shareholders (usually in proportion to their existing shareholdings) to raise additional capital.

Roaming
Allows our customers to make calls, send SMS and use data on other operators’ mobile networks while travelling abroad.

SAC
Subscriber acquisition costs are those costs incurred by operators to acquire customers comprising the total of connection fees, trade commissions and equipment costs relating to new customer connections. See also acquisition costs and A&R.

Service revenue
Service revenue comprises all revenue related to the provision of ongoing services including, but not limited to, monthly access charges, airtime usage, roaming, incoming and outgoing network usage by non-Vodafone customers and interconnect charges for incoming calls. It excludes revenue from selling handsets.

SIM
Subscriber identity module, stored on a SIM card, is an integrated circuit that provides the user with secure access to the network.

Single RAN
Single radio access network. A common product platform to support multiple radio technologies.

Share buyback
A company empowered by a shareholders’ resolution can offer to buy back shares from shareholders. Usually used as a means to return capital to shareholders.

Smartphone
A mobile phone offering advanced capabilities including access to email and the internet.

Smartphone penetration
The number of customers with a smartphone as a proportion of total customers (calculated by dividing the number of smartphone devices by the number of registered SIMs, excluding data only SIMs).

SME
Small to medium-sized enterprises.

SMS
Short message service. A service which enables mobile customers to send and receive text messages on their handsets. See also text.

SoHo
Small-office-home-office.

Special dividend
A non-routine dividend declared at any time during a company’s financial year, usually as a result of an event.

Spectrum
The radio frequency bands and channels used for telecommunication services.

Subsidy
The proportion of the cost of a handset funded by the operator.

Tablet
A tablet is a slate shaped, mobile or portable, casual computing device equipped for a finger operated touchscreen or stylus.

TDD
Time division duplex is a method of transmission where a single frequency channel is assigned to both the transmitter and the receiver. Uplink and downlink traffic flows at different times. See also FDD.

Telemetric applications
Telemetric applications include, but are not limited to, asset and equipment tracking, mobile payment and billing functionality.

Text message
Messages sent by customers from handset to handset using SMS.

Tier 1 IP transit
Communication over an IP network that participates in the Internet solely via settlement-free interconnection

Treasury shares
Shares purchased by the Company out of distributable reserves. They hold no voting or pre-emption rights and receive no dividends.

TSR
Total shareholder return is a measure of the returns that a company has provided for its shareholders, the product of the share price movements plus dividends reinvested over a stated period. It is an indicator of a company’s overall performance.

Tower
A unit functioning as a transmitter and receiver for a mobile network. See also ‘base station’.

VDSL
A very-high-bit-rate digital subscriber line providing faster data transmission rates over copper wires than ADSL. VDSL includes both VDSL-FTTC and VDSL-FTCO.

Verizon Wireless
A US operator that Vodafone previously held a 45% interest in. Vodafone sold its stake in February 2014.

VGE
Vodafone Global Enterprise is the service offered to multinational companies, giving global support through one relationship.

Visitor revenue
Amounts received by a Vodafone operating company when the customers of another operator, including those of other Vodafone companies, roam into its network.

Vodafone One Net
A fixed mobile converged solution offering customers integrated landlines and mobiles alongside a wide range of business tools. The service is currently live in six markets with plans to expand into a further five markets by the end of 2012 and a further three by the end of 2013.

VoIP
Voice over Internet Protocol is the method by which voice and multimedia communications are transmitted over the internet.

VZW income dividends
Distributions (other than tax distributions) by Verizon Wireless as agreed from time to time by the Board of Verizon Wireless.

VZW tax distributions
Specific distributions made by the CellCo Partnership to its partners based on the taxable income of Verizon Wireless.

Wi-Fi
Wireless technology that allows remote devices to connect with networks without the use of wires.

Withholding tax
Tax deducted in some countries from dividends paid to non-residents of those countries.

2G
Second generation networks delivering voice, text messaging and basic data using global system for mobile (‘GSM’) technology.

3G
Third generation networks delivering enhanced data services.

4G
Fourth generation networks offering faster data transfer than 3G networks. See also LTE.