Vodafone adopts a smart strategy

The company has pledged further investment in its European infrastructure to meet increased data demand as customers watch more video content on mobile phones. It is also planning a new pricing strategy for mobile data which will see the adoption of tiered charging.

Vodafone announced its strategy at the same time as results showing it rose half-year operating profits by 3 per cent to 6.1 bn. It also raised its guidance for full-year profits to between 12.2bn and 11.8bn after higher than expected revenues growth in each of its operating regions. UK revenues were up 5.2 per cent in the second quarter, leading to growth of 2.9 per cent in the first half, as the increased take-up of smartphones such as Apple's iPhone and mobile internet bundles more than offset "intense" competition.

At the start of the year, Vodafone became the third network to muscle into the iPhone market in the UK.