VODAFONE INTERNATIONAL
Executive Summary
The report aims at finding various areas of changes in the International Markets with respect to
the telecommunication industry. It had focused on Vodafone International that had obtained
wider aspects of the company that it had a greater contribution to its 5G networking services in
the markets. On the other hand, the report also throws light on the negative aspects of the trading
practices. This includes lowering the range of cost in the investments of cloud systems as well as
digital media platform enhancement. Thus, the report had shown changes in digital implications
with time and on-going business as well as future scope of improvement.
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Table of Contents
Introduction 3
1. Identification of relevant changes in International Markets, in relation to Vodafone
International 3
Cross border taxation 3
Platform market monopolization 4
Increasing tariffs and trade barriers 4
Increasing Regulation 5
Major changes in international marketing with accordance to Vodafone 5
2. Discussion of the impacts of the identified changes in International Markets on Digital Media 6
3. Discussion of the implications for the future of Digital Media from the impacts identified
changes in International Markets 8
4. Discussion of How Digital Media use and implementation may need to change to respond to
the impacts identified changes in International Markets 9
Conclusion 10
References 11
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Introduction
International markets are essential aspects of the business that deal with a certain range of terms
and conditions in terms of doing business in any sector. In other words, international business
can be enhanced through global expertise in structural as well as regulatory procedures that can
influence on setting up and flourish it within stakeholders. This report has been based on the key
relevant changes that took place from the past five years in the international markets as well as
its major impact on digital media platforms. In this respect, the paper focuses on Vodafone
International, the organization that has been affected due to certain changes n positive and
negative ways.
1. Identification of relevant changes in International Markets, in relation to Vodafone
International
There have been major changes in the international markets in the approaches of digital media
platforms. Below are some specific areas, which have been affected in the global market of the
telecom business.
Cross border taxation
Cross border taxation is a category of revenue renovation that enhances the tax-related issues in
two ways such as outbound and inbound taxation. The outbound taxation has been implemented
for US citizens who are required to pay an attributed amount of tax for investing in foreign
businesses and concerning this pattern, the foreigners are bound to pay tax for being engaged in
US-based enterprises by outbound taxation as well. As influenced by, Overesch & Pflitsch
(2019), it can be opined that certain changes have been applied in cross border taxation by Tax
Cuts and Jobs Act, which had introduced regulation of 21% of taxation rate, as the Organization
for Economic Co-operation and Development has implied in the revenue procedure by reducing
the rate to improve the condition of incoming and outgoing service facilities in a suitable way.
However, Global intangible low-taxed income has been applied under the reformed taxation law
by improvising the foreign tax ratio with a 10% increase of taxation in inbound areas by Base
erosion and anti-abuse tax as well (Tracking the Economic Impact of Tariffs 2020). Moreover,
foreign-derived intellectual property income ensures a permanent rate of profit while accessing
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concrete properties by preventing 30% of interest expansion. The aforementioned law has
inflicted a few non-cooperative aspects on the digital media market in Europe due to inconsistent
and impractical stratagem of taxation, as reported by (Ecommerce News 2020).
Platform market monopolization
Market monopolization is a paternal theorem, which enhances the development of a market by
operating the procedure, single-handedly while acquiring a high range of gain. It can be
characterized as natural, location-based, government, and digitized. The changes in market
monopolization have affected the digital media on an international basis as well (Loertscher &
Marx 2020). On the other hand, a market monopoly can be restricted in the United Kingdom due
to the increasing number of competitors with a lack of authentication and customer reliability,
according to Sherman Antitrust law while distributing 80% of mobile telecom service is handled
by three combined groups of companies. For example, it can be certainly suggested that though
Google is one of the largest profitable digitized monopolies, it has undergone the antitrust
investigation by 50 US states and other provisions, as reported by an editor (The Guardian 2020).
Increasing tariffs and trade barriers
The eminent change in the Gross Domestic Product has been reduced by 0.23% while
eliminating the reimbursement with a closed amount of 0.15% with 179,800 job losses. If the
entire execution of elevation in tariffs would be followed, 0.51% of the GDP and 0.35% of the
reimbursement would be damaged. However, the Congressional Budget Office of the United
States has implemented a cost-effective prognosis that has deducted GDP by 0.3% in 2020
(Cbo.gov 2020). However, the digital media market has experienced rapid development in recent
years due to an intensive impact of GDP on it. This had raised tariffs, as one of the most
common trade barriers (Drogue & Bartova 2020). According to the United States Trade
Representative, the government employed a regulation of the Trans-Pacific Partnership, initiating
the cross border data frequency between the US and other business-oriented countries like China
for the future rise in trade barriers. In this respect, it can be identified that international markets
are originally influenced by cloud computational restrictions, filtering of the website as well as
tariffs on digital products (Ustr.gov 2020).
Increasing Regulation
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The World Trade Organization has established several legitimized rules to maintain international
enterprise quality. These regulations contain the fundamental implication of equality,
cooperation, negotiable obligation with reliable terms of privacy protection of the participating
nations in the agreement (Mitchell & Mishra, 2019). This has reflected a significant impression
on electronic commerce by the judgment of the directorial verdict. Moreover, the North
American Free Trade Agreement has been regulated for the enterprise partnership of America,
Canada, and Mexico. This has deducted the ratio of tariffs in several prospects. Furthermore, the
"most favored nations'' law, one of the prime regulations of the World Trade Agreement has
initiated an exclusive progression in digital media in the international aspect (Mitchell & Mishra,
2019). United States Trade Representative has introduced section 301 introspection of digital
services revenue in ten judicial segments (International Comparative Legal Guides International
Business Reports, 2020).
Major changes in international marketing with accordance to Vodafone
According to HM Revenue & Customs, cross border taxation has been regulated in the United
Kingdom without contradicting Brexit. However, Vodafone has faced the loss of 20% of taxation
in the UK from the last 5 years. From an online review, Vodafone has not paid any Tariff in
Britain in 2011-12, leading the company strategy against the WTO regulatory patterns (Garside,
2020). As mentioned before, Vodafone has decided to leave the European Union for increasing
the trade barriers while following international criteria of tariff and cross border data flow as
well. As influenced by Barata (2016), it can be suggested that Vodafone has onslaught the
monopolized telecom companies such as Deutsche Telekom and BT in the year 2015 (Reuters,
2020). This had turned Vodafone, as the second-largest communication service organization.
According to an online survey, Vodafone has decided to be inaugurated in the USA as T-Mobile
Virtual Network Operator in 2015 while following the prescribed International regulations
regarding trade in the USA (Fierce Wireless, 2020). Hence, it seems to agree with WTO for an
international trading relationship in an effective manner.
2. Discussion of the impacts of the identified changes in International Markets on Digital
Media
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Based on the above-identified changes in the international markets on digital media, it can be
recognized that the telecom sector has been tremendously influenced by all its effective
concerns. Sharma, Chen & Luk (2018), opined that a cross border taxation impact on the digital
media in terms of customer perceived value. It determines that in the case of Vodafone
International, it had its impact on its global customers in gaining unlimited network benefits after
trading partners in order to upgrade its 5G scale of services (Vodafone, 2020). However, on the
contrary, it has been argued by Aaronson & Leblond (2018), as there is a data-driven service had
a greater impact on the flow of information.
In this respect, it cannot be denied that consumers’ perceptions change with time and trading
channels as well as the legitimate process of doing business as well as exploring it in the global
market. In the case of Vodafone International, it has been acknowledged that the organization
had its major challenges in the international markets and especially in the Asian market with
networking services. This had a deeper impact across Asian countries in terms of poor customer
feedback as well (Deborshi Chaki, 2020). At this particular point, that company had its multiple
partnership and agreement with specific nations in the international markets apart from its home
country, the UK, nevertheless, it turns out to face this kind of issue for a long time.
Moreover, it has been stated by Cambini & Lorrai (2020), UK-based market monopolization had
its influence on its network services and business restrictions. This in relation to Vodafone
International had its deeper impact on its business in the UK-based market as well. Other than
this, Thompson (2017), commented that in most of the monopolized market, businesses in
telecom sectors had fallen its share of the market.
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Graph 1: Vodafone International Market Share percentage in IM
(Source: Thompson, 2017)
According to the evidence, it has been obtained that Vodafone’s share in the market had fallen
due to its failed sky merger (Thompson, 2017). At the same time, it has also been well
encountered that the market in New Zealand is highly competitive in most global markets. With
respect to tariff rates as well as trade barriers, it cannot be denied that the organization had its
major losses so far. Hence, looking at the previous market scenario above, it has also been
focused on some of the additional key concerns of the company that mainly required
concentrating on its legitimized rules of enterprise quality along with stabilizing its business
formula through partnerships.
Further, the 5 th Generation network services are expected to be more advanced and strengthened
in this new digital media platform (Abbas et al. 2017). This area is the major one that has been
observed to be affected in a tremendous way. Hence, crowd sourcing platforms are effectively-
known for its benefits as well as advantages, which might be beneficial, as it is depending on the
above cases and relevant changes as well.
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3. Discussion of the implications for the future of Digital Media from the impacts identified
changes in International Markets
According to the above situations is observed in the international markets, it can be suggested as
well as practically thrown light on the major implications of the future of digital media. McLean
& Osei-Frimpong (2017), stated that examination of the satisfaction ratio of customers is the
most important aspect of development and growth. Besides, Hasan Mahmud & García-Medina
(2018), commented on the relationship between brand image and online marketing strategies
would make some major changes in a positive direction. Vodafone International might be able to
concentrate on these particular areas of enhancements so that they could be able to find the
intricacies of the relationship in terms of better growth in the International Market.
Apart from that Ab Rahman, Hamid & Chin (2017), acknowledged that enhancing AI can be
another future implication so that it can be able to draw on better growth prospects of IoT
infrastructure as well. For example, emerging technologies had a greater impact on its service
qualities as well as the creation of new portfolios in the markets. With reference to Vodafone
International itself, it cannot be denied from the fact that the organization had its emerging offers
in the global markets such as Mobility, as well as Cloud services as well as valuable insight into
Vodafone Media Recording and Analytics and so on (Vodafone.com, 2020). However, despite
that, it has to be more emphasizing its global communication system as well as customer services
in respect of digital media platforms. Being in this industry, the organization can include a future
implication of technical innovation on its internet as well as calling services keeping aside its
major challenges as well. This could bring some resiliency in this business as well as enhance its
customer relationships for long-term prospects.
As influenced by Claessen (2020), it has been well-identified that if the business in this industry
sector can be strengthened by the application of internet governance, it could be applicable for
this business to have its international markets stable. For example, if there is a securitization of
internet laws as well as cyber policies among different nations like Russia with the EU, it could
have a deeper impact on the greater area of telecommunication business using digital media. In
fact, it has been largely being focused on legislation aspects that can be improved using the
normative framework as well. Vodafone’s international markets having its major priority needs
to be looked into its internet legislation higher authority under EU regulations along with
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agreements throwing key notice on its internet domain as well as registration services. This can
at least have some effective medium of securing cyber threats in respect of customers.
4. Discussion of How Digital Media use and implementation may need to change to respond
to the impacts identified changes in International Markets
In response to the impacts identified in the International Markets, it cannot be denied from the
key fact that digitalization in the telecommunication sector can be able to transform the
communication system in a wider area of the network as well as services. According to
Overesch, & Pflitsch (2019), digital embracing leads to technological progress in a business that
has been challenging in a competitive environment. In accordance with the perception, it has
been accepted that if the digital media in Vodafone International gets modified into a higher
level through the Omni-Channel communication center as well as social media channels, it might
not be able to find traditional ways of hindrances that took place prior to this new concept. This
tries to illustrate as well as pointing on the legal as well as pro-flexible working culture and
doing business successfully.
On the contrary, Saint & Deen (2018), identified and focused on the fact that moving onto the
cloud platforms digital media platforms can be enhanced through the purpose of cloud drivers
through virtual machines. The ultimate goal of adopting cloud services in the digital media use
and implementation is to mainly enhance the quality of IaaS at the same time, reducing the cost
of utilities on the businesses. In that respect, Vodafone International has a great opportunity to
implement either utility-based or else subscription-based models for the benefit of its virtualized
process of infrastructure as well as platforms that can be effective. Besides, open sources cannot
be incorporated in this network, as it is prescribed for traditional telecommunication services.
Hence, as per changing demand in the international markets, it can be implemented and used in
the manner so that services are not in a vulnerable position.
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Conclusion
Therefore, depending on the overall analysis of the telecommunication International Markets are
concerned, the report has been considered to be an effective piece of evidence and critical
thinking analyzing on the wider aspects of network and internet services that have been
influenced and affected by major areas while using digital media. Throwing the relationship
between Vodafone International, it has been associated with the key areas where the company
had to face challenges and its deeper impact on its business growth and development aspects.
Hence, the implications, as well as changed prospects that have been discussed above, are a few
positive aspects that can bring sustainability in its International Market relationship as well as
effective consumer services.
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References
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