• Market saturation in Europe – Europe’s share of subscribers is 30%, but it brings in more than two-thirds of the revenue for Vodafone. This demonstrates the extent of its dependence on the continent. Since the mobile phone penetration in most of its European markets is about 100%, the scope of growth, apart from services like LTE, is limited. Not surprisingly, its service revenue from the region declined by 7.9% in the recent quarter. The trend has been downwards for a few years now. If a company’s profits are decreasing in its most important region, it is a big threat.