Vodafone, a prominent telecommunications group, has entered into a strategic agreement with Microsoft, entailing a significant $1.5 billion investment in artificial intelligence (AI) and cloud services to bolster adoption across Africa.
Announced on Tuesday, the collaboration outlines Vodafone’s commitment to invest $1.5 billion over the next decade in cloud infrastructure and customer-centric AI services developed collaboratively with Microsoft. Concurrently, Microsoft will leverage Vodafone’s fixed and mobile connectivity services.
As a British multinational telecommunications company, Vodafone operates predominantly in Asia, Africa, Europe, and Oceania. Presently, it offers services in eight African countries, including DR Congo, Egypt, Ethiopia, Kenya, Lesotho, Mozambique, South Africa, and Tanzania.
Part of this alliance involves Microsoft’s investment in Vodafone’s managed Internet of Things (IoT) connectivity platform, slated to become an independent entity by April 2024. The newly formed company aims to attract additional partners and customers, fostering growth in applications and expanding its platform to encompass more devices, vehicles, and machinery.
The envisioned digital services resulting from this collaboration will leverage cutting-edge generative AI technology, providing a highly personalized and distinctive customer experience across various channels. These services will adhere to unbiased and ethical privacy and security policies within Vodafone’s established framework for responsible AI.
In response to the agreement, Margherita Della Valle, Chief Executive of Vodafone Group, stated:
“Today, Vodafone has made a bold commitment to the digital future of Europe and Africa. This unique strategic partnership with Microsoft will accelerate the digital transformation of our business customers, tiny and medium-sized companies, and improve the quality of customer experience for consumers.”
The chairman and CEO of Microsoft Satya Nadella, also commented saying:
“This new generation of AI will unlock massive new opportunities for every organization and every industry around the world.
We are delighted that we will apply the latest cloud and AI technology together with Vodafone to enhance the customer experience of hundreds of millions of people and businesses across Africa and Europe, build new products and services, and accelerate the company’s transition to the cloud.”
Vodafone and Microsoft have announced a strategic collaboration, identifying five key areas of cooperation encompassing Generative AI, Scaling IoT, Africa Digital Acceleration, Enterprise Growth, and Cloud Transformation.
As part of the Africa Digital Acceleration initiative, Microsoft aims to contribute to the expansion of M-Pesa, the largest financial technology platform in Africa, by hosting it on Azure. This collaboration will facilitate the introduction of new cloud-native applications. The companies are jointly launching a purpose-driven program aimed at positively impacting the lives of 100 million consumers and 1 million SMEs across Africa. The program focuses on enhancing digital literacy, skill development, and youth outreach, while also providing digital services to underserved SME markets.
With a goal to foster financial services innovation, the collaboration will establish a community of certified developers. In the realm of Generative AI, Microsoft Azure OpenAI will be employed to deliver seamless, real-time, proactive, and highly personalized experiences across all Vodafone customer touchpoints, including the digital assistant TOBi available in 13 countries.
Furthermore, Vodafone employees will harness the AI capabilities of Microsoft Copilot to revolutionize working practices, enhance productivity, and optimize digital efficiency. This comprehensive collaboration aims to bring forth advancements in various sectors, leveraging the strengths and expertise of both companies.
