Chief executive Vittorio Colao did not say how Vodafone would price its broadband or TV when it launches in spring 2015, but said the move was in direct response to BT’s mobile plans.
“To be honest, it’s more of a defensive, reactive move,” Colao told reporters, following Vodafone’s first- half results yesterday.
“We will follow whatever they [BT] do and the level of aggressiveness in their pricing. Of course, if they come harsh [cheap] on mobile, we will come harsh… The profit pool of TV is big, the profit pool of fixed-line [broadband] is big as well, bigger than mobile.”
The announcement came as Vodafone increased its 2014 results guidance yesterday as improving demand in its big European markets and an investment push into new products helped to reduce a drop in revenues.
It now expects its full-year core profits to be between £11.6bn and £11.9bn, compared with the previous guidance of £11.4bn to £11.9bn.
Vodafone’s group revenue still fell three per cent to £20.7bn during the six months to 30 September, beating expectations of a larger fall, with profits dropping 73 per cent to £406m as the group invested in upgrading its network. Vodafone’s shares rose 5.4 per cent to 219.05p yesterday.