Vodafone 2026 Annual Report

34 Vodafone Group Plc Annual Report 2026

Strategic report

Governance

Financials

Other information

Empowering People continued

Affordability and accessibility Affordable connectivity is a cornerstone of digital inclusion. When people can access reliable mobile services, data, and devices at a cost they can reasonably afford, they are better equipped to participate in the modern economy – studying online, working remotely, accessing public services, starting and growing businesses, and staying in touch with communities and support networks. Across both Europe and Africa, affordability challenges persist, though the barriers differ by context. In Europe, rising living costs and energy prices continue to strain household budgets, increasing pressure on ongoing connectivity expenses. In Africa, affordability challenges are often compounded by the high relative cost of basic smartphones and data, creating a higher threshold to get connected in the first place. Our approach recognises these different realities. In Europe, the focus is on affordable mobile plans that help lower the cost of staying connected for marginalised groups. In Africa, we combine smartphone accessibility (getting people online) with affordable data offers and zero-rated access to essential services (staying online). Together, these interventions support broader digital inclusion and unlock positive social and economic outcomes for impacted groups. Affordable Tariffs in Europe Affordability remains a barrier to digital participation across Europe. In FY26, despite continued progress, around 6% of EU residents (aged 16–74) did not access the internet regularly 2 . This group faces a heightened risk of digital exclusion, potentially limiting access to remote work, online learning and essential digital services.

Strategy Our aim is to address digital inequality across our European footprint by ensuring that all segments of society, including those on lower-incomes, can get-and stay-connected. Across all our European markets, we aim to offer more affordable mobile connectivity plans, either through targeted social tariffs (which are means- tested or linked to government support) or lower-cost plans (commercial tariffs available to all customers) to meet customer needs. For example, in both the Czech Republic and the UK, we offer social tariffs that enable customers receiving government financial support to access discounted and flexible fixed and mobile plans. Following a review of our European markets – combining external research with input from commercial market leads – we established a minimum standard for affordable mobile data access. This standard is based on a minimum data allowance of 6GB per month, priced at less than 2% of the average income of the bottom 40% of the population in each market. This aligns with international benchmarks, including World Bank data and the UN ITU’s Aspirational Targets. Our aim is that all of our European markets meet this standard, creating a consistent approach to supporting customers on a lower income. This year We made strong progress in meeting our ambition to offer affordable tariffs across our European footprint. As at 31 March 2026 seven of our eight European markets met our definition of an affordable tariff.

We are committed to supporting affordable internet access for lower-income customers in all our European markets. We conduct annual audits across our European footprint to review the availability of affordable tariffs. These checks help ensure tariff offerings continue to meet data and income thresholds over time. In addition, we are committed to ensuring continued alignment across our European footprint through annual audits. These checks help ensure tariff offerings continue to meet data and income thresholds over time. Affordable tariffs in Europe 2026 2025 European markets that have an affordable tariff in place 7/8 5/8 Looking forward We will prioritise ensuring the availability of affordable mobile plans across our European markets, providing tariffs that continue to meet the minimum data requirements and remain accessible relative to local income levels. As more daily activities digitalise, we will also review our minimum standard so that it continues to align with evolving customer data needs and ensure we are able to support their full participation in Europe’s digital economy.

Despite living in areas covered by mobile networks, 38% of the world’s population still do not use mobile internet 1 . For many, the cost of both smartphones and data remains out of reach. This challenge is known as the ‘usage gap’ and is eight times larger than the number of people who lack mobile broadband coverage entirely. Our strategy aims to reduce this gap by lowering the cost of smartphones in Africa and offering solutions to make data more affordable across both Africa and Europe.

65% smartphone penetration across our African markets 7/8 of our European markets offer an affordable tariff

Notes: 1. GSMA, 2025. 2. Eurostat, 2025.

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