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Vodafone Group Plc
Morgan Stanley
Goldman Sachs
BNP Paribas Exane
New Street Research
Bank of America Merrill Lynch
Bernstein SocGen UBS
Deutsche Numis
Forward-looking statements
JP Morgan
Citigroup HSBC
In a market, which now we should all recognise in Germany, does not have much growth in terms of penetration anymore. It is plateauing. The stabilisation of our customer base in the last couple of quarters has come from churn reduction. We are very pleased to see now our cable churn, where we also by the way the highest ever NPS Vodafone as recorded for cable. Our cable churn is now very much in line with what you would expect. It is actually below, for example, the fixed broadband churn that we have in the UK, which is growing strongly. This churn reduction is a function of the fact that we have really changed the customer experience. You have seen us and you have heard us talking about network investment over the last couple of years, improved customer base management and processes. Also we have done a lot of work on legacy routers, which are now less than 15% across the whole customer base of Vodafone. As an outcome of all this, we have had best in test results, as you have seen on the network across all networks in fixed broadband in Germany, just recently a third less network complaints, from our customers and this best ever NPS. This is the sort of structural customer experience transformation that I see as a leading indicator of performance and that we will continue to drive in that space adding what I said before, which is on top of a better service to our customers, also a wider footprint in which we can sell gigabit product is going to allow us to be a one-stop shop for the customers across fixed mobile and TV. This is a very clear objective for us. Now you asked where are we on fibre and then what is going on in the MDUs. Maybe just covering these aspects. In terms of our own fibre build, you have seen in these results that OXG has been running late compared to the original plan. The majority of the build was to be done with Geodesia, which obviously had some issues in the last 12 months. But we have taken action. We now have 29 different building companies working across 22 cities in Germany. As of today, we are reaching 200,000 households and our cruising speed of now is 100,000 per quarter but we are looking forward to an acceleration and our orders are already been issued for 2 million. I think it is really important, there will always be competition in the MDUs. There was competition in the MDUs before. That is not new. But we really want to leverage the economic benefits that we have working in the MDUs and the strong partnerships that, as you will have seen, have carried us through the transition of the TV law for, of course, a good business case, I would say, also from fibre in those areas. These are the areas of focus for us. In a nutshell, if I had to summarise, same strategy as before. We will continue to fiberize our cable network that satisfies our customer needs and is now getting very good satisfaction. We will continue to overbuild ourselves in the MDUs because there is a strong economic case for that and then in the areas of the country where today we resell DSL, we will grow with fibre together with the fibre builders there. That is the same strategy. Alongside all the changes at Vodafone, the world has changed a fair bit too since we last met. You mentioned the opportunity on sovereign data as a result of geopolitical change. Perhaps German stimulus plans are good news there, too. On the less helpful side, are you expecting any impact on the trade tariffs on equipment pricing or equipment availability at this stage? Maybe we should not be worried about CAPEX though as mobile data in Q4 is growing at less than half the rate of a year ago. Is this more Wi-Fi offload or lower growth in demand?
Robert Grindle Deutsche Numis
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