Focus on key areas of growth potential:

Total communications

To meet customers’ total communications needs beyond just mobile we have developed our fixed line capabilities including voice calls and broadband data, to provide a full suite of services. We can integrate customers’ mobile and fixed line communications into one service and provide related services such as Vodafone TV. Enterprise customers in particular have shown an increasing demand for receiving all their communication products from one company.

Approach

Our European strategy is to obtain long-term access to fast fixed broadband to service high value customers in a capital efficient manner. Access is obtained through wholesale agreements, partnerships or acquisitions.

Fixed services

Fixed broadband and voice account for around 8% of our service revenue. We have fixed services in 13 countries with 6.1 million fixed broadband customers at 31 March 2011, a 9.5% increase over the previous year. In addition, through Gateway, we provide wholesale carrier services in over 40 African countries.

Combining fixed and mobile services

The Vodafone DSL Router, now available in 11 markets, up from six markets the previous year, combines mobile and fixed broadband services. This means customers can connect immediately after purchase via the USB broadband modem and then later with fixed broadband when this has been provisioned. During the year we have enriched this product in our largest fixed markets (Germany, Italy and Spain) through the integration of digital living network alliance (‘DLNA’) capabilities which facilitates the sharing of digital media between different electronic devices. For example, a DLNA compliant TV can operate with a DLNA compliant PC to play music or videos, or display photos.

We have been offering triple play services (fixed broadband, voice and TV) in Portugal since 2009. This year we increased our presence in the home TV market by launching services in Italy, Spain and Germany.

Application services

We offer a range of total communications applications as well as services for enterprise and consumer customers. For example Vodafone Always Best Connected software enables customers to stay connected to the internet on the best available connection wherever they are by automatically managing the switching between connection types including mobile broadband, Wi-Fi and LAN. Vodafone PC Backup is an online back-up and restore service that enables users to remotely store data securely and automatically via their internet connection.

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