Vodafone Group Plc Q1FY26 Q&A Transcript
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relaxation, that you do not have the same opportunities to maybe wholesale and that leaves you, and I am going to say, stuck with a cable network. I was really interested in that regulatory letter you guys sent the other day. I would love your thoughts around that. I am not even sure that is a direct question, but I will let you answer. Thank you.
Margherita Della Valle
Well, maybe I will pick up on the "what is happening on fixed regulation" and the read-across to our strategy.
Vodafone Group
First of all, the reason for the letter. Let me be absolutely crystal clear, there is a big opportunity for simplifying regulation in telecoms across all areas, fixed as much as mobile. The status quo in fixed is not an option. We need to move the agenda on if we want to regain competitiveness in Europe. However, the reason why we have been calling out fixed is that there needs to be a very simple red line, and we wanted to make sure it was clear in the conversation on simplifying regulation, which we wholeheartedly support, and this is re-monopolisation. Where fixed is today is there are very large areas of Europe, as you know, which are served by one infrastructure. And again, as you know, this is set to stay with us for many, many years to come. In these conditions where for any customers, our customers, any other European customers, there is only one provider. It is really important that we maintain a degree of rules in the case of what I would call natural monopolies. What we mean by that and what we have been advocating with the Commission is that ex-ante regulation is maintained and fair and equitable access is guaranteed to European customers where there is one infrastructure. It is just as simple as that. And it has nothing to do with whatever we are doing with our own infrastructure. We are very happy with the strategy we were mentioning earlier in this conversation with James. We are continuing to invest in our cable network, and we are building fibre. However, in Germany, in our plans, for example, there will always be areas of the country where there will be a degree of wholesale. That does not change. And it is really important that if that happens in monopoly conditions, some framework rules are maintained.
It is very, very simple. Lots of simplification ahead for fixed regulation should not go all the way to create areas of monopoly.
David Wright
Interesting. However, if I am the incumbent, am I not saying yes, but none of you guys are investing? You are not overbuilding cable with fibre. VMO2 in the UK has stopped investing in rollout. Do I not say, but it us who are investing, not you?
Bank of America Merrill Lynch
Margherita Della Valle
I think that this logic on who invests the most, we need to move to the point to a different point, which is if there is a monopoly in place, a monopoly cannot be managed without any rule. That is what we are talking about. Nothing to do with investment.
Vodafone Group
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