40 Vodafone Group Plc Annual Report 2025
Strategic report
Governance
Financials
Other information
Empowering People continued
FY25 network deployment
Data democratisation in Africa For many of our poorest customers, the cost of data is a barrier to accessing the internet. This is apparent in Africa which has the least affordable data compared with income 3 . We are focused on reducing data costs to better support our customers. Once a consumer is empowered with a smartphone, we have two key initiatives to make data affordable and offer value for money propositions based on consumer usage and spend. Our strategy centres around expanding two programmes – ConnectU and Just4U – into all Vodacom markets. ConnectU, already live in South Africa, DRC and Mozambique, provides free to use access to basic internet and essential services and resources including education, health services, jobs boards, and social networks aimed towards those less able to afford data. Just4U propositions are product recommendations that are personalised at a customer level. These are further structured at a geography level (i.e. Just4U Towns). Through Just4U Towns (part of Just4U), we use census data to identify towns with low-to middle-income populations, offering customised voice and data packages based on consumer behaviours and preferences to help to lower their costs. We offer these solutions in line with local price floor regulations designed to balance consumer interest with the sustainability and health of the sector. Affordable mobile tariffs in Europe Affordability is also a challenge in Europe, where the cost-of-living crisis and soaring energy prices have placed a significant strain on households. As of 2022, about 10% of the EU population lacked regular internet access, hindering their ability to work remotely, pursue online education and access essential services 4 .
Our aim is to address digital inequality by connecting all segments of society, including those on a low-income. To achieve this, we have developed a minimum standard for affordable data access (based on a minimum of 6GB per month), priced at less than 2% of the average income of the bottom 40% of the population in each market. This standard is aligned with data from the World Bank and the UN ITU’s Aspirational Targets. As at the end of March 2025, five of our eight European markets had an affordable tariff in place, which are available for our customers online. Our affordable tariffs policy provides guidance to markets to ensure a consistent approach across our European footprint so that our mobile customers can remain connected to the internet. To achieve this, all European markets should offer either an affordable mobile tariff or a mobile social tariff specifically targeted to those facing financial hardship. This policy supports our ambition for an affordable tariff to be offered in every European market. The Group commercial management team and sustainable business team review the affordable tariffs policy at least annually to ensure they continue to meet the needs of customers. Our target is to have affordable tariffs in place across the majority of our other European markets by the end of FY26. Financial inclusion in Africa Globally, 1.4 billion adults do not have a bank account, but among them, an estimated 1.1 billion have a mobile phone 5 . Financial inclusion is the extension of financial services to underserved populations, ensuring accessibility and affordability. Financial inclusion is essential to support the reduction of extreme poverty and delivers significant social benefits and economic opportunities, with digital technology playing a key role in providing access to safe, secure financial services.
To address this, our strategy is to increase smartphone penetration through three key actions: 1. Low-cost sourcing: We offer entry-level 4G devices to seek to address the affordability challenge. This year, we introduced a new cloud-based phone in South Africa which comes with popular applications such as YouTube, TikTok and Facebook as standard, all accessed via cloud, and retails at R249 (US$13.93). 2. Device financing: We have a range of device finance schemes enabling customers to purchase a smartphone with a one-off deposit, completing their purchase through affordable daily, weekly or monthly payments. One example of a device financing scheme is Easy2Own in South Africa. 3. Local assembly: By assembling smartphones within countries in Africa, import duties can be reduced. These import duties often make up a significant proportion of the device cost. An example of where Vodafone has invested in device assembly is the EADAK plant in Kenya.
Sites deployed (000s)
Population coverage (%)
4G (outdoor 1Mbps) Africa 5G (outdoor 1Mbps) Europe 1 Türkiye
35,753 28,015 41,050
76 97 75
Note: 1. Continuing operations only. Smartphone access in Africa Once people live within range of mobile
broadband networks, there are still several barriers preventing the universal use of mobile internet, including lack of awareness, low literacy and digital skills and device affordability. Smartphone ownership is lowest in emerging markets. Approximately 62% of Vodacom’s customers have access to a smartphone. Given that smartphones are increasingly the main gateway to digital services, and that entry-level smartphones in sub-Saharan Africa cost 99% of the average monthly income for the poorest 20% 2 , we recognise the urgent need to make smartphones more accessible. Our goal is to increase smartphone penetration in our African markets. By making smartphones more accessible, we can help customers move to mobile internet services that can support their education, access to employment and financial inclusion whilst driving the growth of our 4G customer segment.
Notes: 2. GSMA, 2024. 3. ITU, 2024. 4. Eurostat, 2023. 5. World Bank, 2021.
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