Vodafone is set to appoint WPP as its agency to handle its £800 million global media planning and buying requirements in around 20 markets, including the UK.

The WPP team appointment will be a huge loss to OMD, which handles the bulk of Vodafone's media business elsewhere in Europe. WPP's entry is expected to affect all markets where Vodafone operates as a wholly-owned venture, including the UK, Germany, Italy (despite it being a partnership, not wholly owned venture), and Spain in Europe. For now, there's no word on the Indian market.

WPP team for Vodafone will work as a centralised unit within WPP, which to date has largely been a vehicle for WPP's creative agencies. It co-ordinates WPP companies working on the Vodafone business, drives best practices and focuses on the client relationship.

Vodafone's US and French media interests, through Verizon Wireless and SFR, respectively, have not been included in the review, neither have Russia or South Africa.

It is not yet clear if Vodafone's Australian business, which recently merged with Hutchison's 3, is included.

A Vodafone spokesman said an official decision was yet to be announced, but confirmed the consolidation of global accounts was the first time the telecom company had placed its entire multi-market media business with one supplier since it became a global player.

The spokesman also confirmed total billings for the markets involved in the review were approximately £800 million. "It was all about finding the most cost-effective way of doing things", added the spokesman. "The decision means we won't actually save on costs, but we will get a bigger bang for our buck." A spokesman for WPP said that, as far as it was concerned, no final decision had been made and there were still three agencies involved in the process.

The pitch process has been run by Vodafone's global brand director David Wheldon and global media director Charlie Stopford. It will supersede a number of local-market reviews that have already taken place or that are still under way.

The global review was instigated by Vodafone chief executive Vittorio Colao, who took control of the company in July 2008. Announcing group revenue of £19.9 billion, which is 17.1 per cent above that of 2008, Colao said he planned to further improve operational performance through cost efficiency.