Vodafone UK has unveiled its plans to expand its public sector activities, as government spending cuts provide new growth opportunities for mobile operators.
The U.K.’s union government aims to lower spending by US$37.18 billion in fiscal 2011-12, with a view to saving US$130.95 billion by fiscal 2014-15. However, Vodafone UK’s enterprise director Peter Kelly sees the cutbacks as an opportunity for the operator to win new business by identifying areas where it can help the government to rein in costs.
According to Kelly, Vodafone has a key role to play in driving cost-efficiency and productivity in the public sector. They believe investment in mobile is a key way of lowering fixed [telecoms] costs and property [costs]. The U.K. government spends US$3.23 billion per year on fixed-line services.
According to Kelly, Vodafone could enable central government to save between 10% and 20% of the US$40.41 billion it spends annually on property by deploying solutions that would allow more of its 110,000 employees to work remotely.
Kelly added that Vodafone already has around 1 million public sector mobile connections, but the operator plans to ramp up its activities and win further business by developing four new units within its enterprise arm that will focus on providing mobile services to four different public sectors: health, criminal justice, local government, and central government.
Vodafone’s head of public sector sales Ian Cunningham stated that the new divisions are due to launch in March, and will take a consultative-led approach. It doesn’t stop once you’ve sold them a solution. It’s about understanding the challenges that they have, and addressing them. Giving someone the right tools is not just about giving someone a BlackBerry and leaving them to get on with it; you have to install the services and applications that are going to drive productivity as well.
Indeed, Vodafone announced at the same event that it has won a four-year contract to provide mobile services to the Metropolitan Police Service (MPS) the U.K.’s largest police force.
The deal will see Vodafone build on projects it has undertaken with police in Lancashire and Northampton shire that enabled officers to carry out duties that would normally require them to return to their police station such as accessing secure databases and filing reports while on the move, therefore increasing the amount of time spent out on patrol.
Furthermore, Vodafone’s agreement with the MPS also acts as an umbrella agreement known as the National Police Framework Agreement under which any of the U.K.’s police forces may procure mobile technology and services from the operator on the same terms.
Kelly noted that not only will it offer more cost-effective and better services to the citizen, but also better productivity and satisfaction for the employee.