Vodafone is injecting £7bn into its networks and services over the next two years in a bid to stand out from competitors.
In the UK this will see further investment in Vodafone's network, including an extra £150m to fund a 30% increase in Vodafone's network footprint in London. This follows a 50% increase in spending on Vodafone's UK network, to more than £900m this year, which the operator announced in June this year.
Plans for its £7bn Project Spring investment programme, aimed at driving organic growth through strategies such as Vodafone Red, extending its 4G network and its unified comms services were revealed as Vodafone announced its half year results..
The operator said trading remains ‘very tough’, particularly in mature markets. Organic service revenue, which measures ongoing revenue after one off costs such as handset sales are stripped out, was down 4.9% in the seconds quarter, which the operator said was due to weak trading in Europe.This compares to a 3.5% fall in Q1 and 4.2% in Q4 last year.
Vittorio Colao, group CEO, said: 'Whilst trading conditions in Europe remain very tough at present, we are encouraged by the forecast return to economic growth over the next two years and the potential for a shift in regulatory focus to support greater industry investment and consolidation.'
He said the operator's emerging markets businesses are performing well, due to rising smartphone sales and data usage. However he said its mature markets were facing 'more challenging conditions', which the company is continuing to tackle through its ongoing cost efficiencies drive.
He added: 'This rigorous approach, plus our substantial investments in Vodafone Red, 4G and unified communications services – including our recent acquisition of Kabel Deutschland – are laying strong foundations for the future.
'Our Project Spring organic investment programme – now increased to £7 billion – will accelerate further our plans to establish stronger network and service differentiation for our customers.’