Vodafone Group Plc Annual Report 2025 233
Strategic report
Governance
Financials
Other information
Regulation continued Unaudited information
In Romania, the NRA (‘ANCOM’) has started the review of dominant operator M1’s Wholesale local access provided at a fixed location, with the NRA conclusions expected to be communicated by June 2025. This is a result of Vodafone’s request for the ANCOM to appropriately address competition distortions within the market, as M1 has over 70% of the market and continues to expand its position each year. In the Czech Republic, in July 2023, the CTU published market analyses of fixed broadband access markets. The CTU concluded that the regulation of fixed broadband central access for mass-market products is no longer justified. The CTU removed the designation of the fixed incumbent as an undertaking with significant market power in this market and thereby removed its regulatory obligations. There was a transition period of 12 months following the CTU decision which expired in February 2025. Other Africa and Middle East: Democratic Republic of the Congo (DRC); Tanzania; Mozambique; Lesotho; Türkiye; Egypt. Spectrum In Mozambique, the 5G auction consultation proposes a reserve price of $15m per 2x5 of 700 MHz, $15m per 2600 MHz and $15m per 3500 MHz. The price for 2600 and 3500MHz is comparatively excessive against both Vodafone and neighbouring markets benchmarks. The proposed draft auction rules are also against best practice. The Communications Regulator has indicated a willingness to introduce coverage obligations in exchange for marginally reduced pricing, but these are yet to be reflected in the official auction rules. The cabinet of ministers approved the auction rules and terms and conditions, which have now been published in the Government Gazette, to legalise the launch of the auction. The auction was expected be scheduled 60 days subsequent to the publication of the joint dispatch; however, there is a risk that the auction may have been postponed.
In Egypt, the NRA (‘NTRA’) initiated the issuance of 5G radio frequency spectrum licences; the initial proposal included an indicative reserve price of US$450 million and successful bidders were expected to incur US$450 million in 5G-related network investment. Subsequently, the NTRA submitted a new proposal for the 5G licence terms and conditions at a cost of US$150 million for fifteen years with extension to all current licences without spectrum. Vodafone Egypt did not accept this. On 1 January 2024, Vodafone Egypt received an offer from the NTRA for the 5G licence entailing a licence fee of US$173 million for a fifteen-year licence terms and renewal of the 2G/3G/4G licences until 2038. This offer was valid until 15 January 2024. The President had also directed that if the offer was not accepted by at least one of the operators, the NTRA will be required to issue a new offer entailing US$150 million and renewal of existing licences. On 15 January 2024, Vodafone Egypt rejected the offer, however, the government-owned Telecom Egypt accepted the offer and announced its acquisition of a 5G licence. Following further negotiations, Vodafone Egypt accepted the offer and paid US$150 million. The 5G licence was awarded on 7 October 2024 and Vodafone Egypt plans to launch 5G services for its customers by April 2025. Vodafone Egypt has officially concluded acquisition of its 5G licence at a price of US$150 million, in addition to US$17 million paid for the renewal of Vodafone Egypt’s existing licences. Regulatory and legal disputes and fines In the DRC, Vodacom DRC are in ongoing negotiations with the NRA (‘ARPTC’) in relation to new regulatory fees that were first introduced in March 2022. On 22 October 2022, the MNOs (including Vodacom DRC), Minister of Communications, and ARPTC reached an agreement and signed an Memorandum of Understanding (‘MoU’) on the new regulatory fees, setting out revised fees and modality of payment. The MoU also provides for resolution of any pending fines and legal actions in this regard.
Execution of each party’s obligations under the MoU is ongoing. In the DRC, the Minister of Communications further extended the deadline for licence conversion under the new Communications Act to 30 September 2024. Vodacom DRC has reviewed the final versions of the licence terms and still awaits conclusion of the licence conversion process. In Tanzania, the TCRA found that Vodacom Tanzania had failed to comply with regulatory Quality of Service (‘QoS’) targets during 2023, mostly in the Zanzibar region, and has ordered Vodacom Tanzania to implement network improvements. There have been further reports during 2024 and 2025 where the TCRA has issued reports highlighting Vodacom’s failed QoS KPIs in Zanzibar and Dodoma. The persistent findings of failing QoS against Vodacom pose a risk of non-compliance sanctions. Vodacom is executing on the network improvement commitments made to the TCRA, including construction of additional sites both in Zanzibar and Dodoma. Vodacom has made progress and continues to engage the TCRA to provide updates on its network rollout plan. After the earthquake that occurred on 6 February 2023, Vodafone Türkiye (and other mobile network operators) were subject to an investigation that took place in September 2023 by the ICTA. Following the investigation, the written defence was submitted on 9 October 2023 and the oral defence was held on 5 November 2024. The result of the investigation is pending. Networks, coverage and access In Egypt, Vodafone Egypt’s roadmap to shut down 3G technology by end of 2026 has been delayed. The NRA (‘NTRA’) will define an industry 3G shutdown roadmap in line with Vodafone Egypt’s own roadmap. This is still under negotiation.
Furthermore, Vodafone Egypt has been working with the NTRA and security agencies since 2023 on providing the Wi-Fi Calling service, which helps in offering higher voice quality in poor indoor coverage areas routing voice calls through a Wi-Fi network rather than a cellular network. This service was launched on 20 January 2025. In Egypt, a licence is required for the establishment and operation of data centres and the provision of data centres and cloud computing services in Egypt. Where granted, the duration of this licence is fifteen years. In 2023, the NTRA offered the cloud licence. Vodafone’s cloud hosting services, as long as cloud service providers outside the Egyptian borders are allowed to offer their services in the Egyptian market without abiding by all the regulations applied within the Egyptian borders. This includes licence fees, NTRA revenue share (5%), and other taxes. In Türkiye, VFTR avoided regulatory settlement process and increased domestic SMS Interconnection fees from 0.012 TL/per SMS to 0.026 TL/per SMS for the year 2025. With the increase, financial impact is calculated as 540 mTL for 2025. Pricing practices Due to the hyperinflationary environment and the devaluation of the Egyptian pound, Vodafone Egypt initiated talks with the NTRA on pricing schemes to mitigate the inflation rates affecting all prices in the market. The discussions started in July 2024, and Vodafone Egypt was permitted to increase prices by 30% across all price points, without changes to the minute rate and charging card values since last December.
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