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Vodafone Group Plc
Morgan Stanley
BNP Paribas Exane
Bank of America Merrill Lynch
New Street Research
Deutsche Numis
Forward-looking statements
Barclays
JP Morgan
Citigroup
UBS
Berenberg
Just a bit more colour on the actions. I would say and reiterate, as Luka said, the team is doing a really great job. I think we are progressing at a pace that has not been seen before in UK telcos, in terms of bringing the two companies together. Just to give you a sense, we are only a few months in, and we are already completing the integration of the third levels in the organisation. And on networks and on other operations, what are the things we are seeing? On the network front, we talked in Q1 about higher speeds for Three customers, the whole customer base of Three, because of how we are using the spectrum together. I would say Q2 was all about rolling out our multi operators core network to allow customers to use seamlessly both networks. You may remember me saying that we had a target of 8,000 sites upgraded for MOCN by year-end. Well, actually, it will be, I think by tomorrow, is the latest. We will get there this week. This obviously talks to the reduction of ‘not spots’ for our base. You know that we are targeting a surface of 10 times the size of London. And it is actually really visible today. You do not need to take my word for it. Opensignal has already published a report saying it is noticeable and measurable. I cannot wait to tell you more about this in the coming quarters, as we will also see the customer reactions. But it is a very strong pace. Operationally, beyond the networks and the teams coming together, what is also coming together really well now is what I would call our multi-brand strategy. We now have a single team, for example, in consumer, managing across all our brands. And these brands allow us to cover all market needs and do this in a consistent coherent way, which is quite powerful. Then as Luka mentioned, we have been opening cross-selling. That is obviously supporting our commercial momentum. We were already the market leader in growth in broadband. We are now offering our broadband offers to the whole Three base and the FWA offers to the Vodafone base. As you can see, the first things we are excited about at the moment are the revenue synergies, and these come, of course, on top of the £700 million cost and CAPEX synergies that are, of course, part of our business case. Good momentum in the UK, and you will see this continuing ahead of us. It is a question on Germany. There are proposed changes to legislation that will make it easier for operators such as Deutsche Telekom to access MDUs and deploy fibre. What is your view on the impact of these potential changes? And can you also talk to the economics for the OXG fibre JV. From memory, it is about €7 billion of CAPEX to build a footprint to seven million homes. But can you remind us what the equity injections ae that are required for the JV, and how should we think about the wholesale costs that the German unit has to pay to OXG JV longer term? Thank you, Polo. I think I will take both sides of your questions, maybe starting from the draft Telco Act which is being discussed in Germany. There are a lot of measures as part of this that are all geared towards simplifying and accelerating high speed network builds in Germany, for example, by simplifying permit processes. This is actually really good. It is good for the fibre build out. It is good for the 5G build out. So I think the government is really pushing in the right direction in the country. Now as part of all the discussions going on, there are some elements, and you referred into the in-building wiring debate that we feel are unnecessary and we are openly sharing, what I would call, our real-life insights on what is happening on the fibre building. I think it is very clear to everyone that the bottleneck in fibre building in Germany has nothing to do with housing association and has more to do with other factors such as construction capacity limits. But beyond that, today, these are discussions. There is no draft law to really comment upon. But just to take your point, even if all the discussions that are going on, were translated into law, for the reasons I have just described, actually, the impact is going to be just a marginal maybe acceleration of the fibre building towards the housing associations. And that will benefit all players in the market, including OXG.
Margherita Della Valle Vodafone
Polo Tang UBS
Margherita Della Valle Vodafone
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