media guardian story

Vodafone has signed up fewer than 10,000 UK residential broadband customers, despite launching its service a year ago.
Orange sparked panic among its mobile phone rivals in May 2006 when it merged its mobile business with residential broadband operator Wanadoo and offered customers a free "converged" fixed and mobile service.

O2 snapped up the small British internet service provider Be Broadband, while Vodafone signed a wholesale broadband deal with BT and started its service last January. But consumer take-up has been very low. While Orange leads the market with 326,000 British customers taking both mobile and broadband, O2 has just a few tens of thousands.

Vodafone said it has spent very little on marketing the service in the UK. Instead it uses it to retain customers in danger of defecting to a rival. Overall, Vodafone said yesterday, it had 3.1 million broadband customers across 11 countries but the bulk - 2.4 million - were in Germany.
Retaining customers has become increasingly important to Vodafone as it faces fierce competition, which has depressed prices by 15% to 20% in the past year. It has also been looking to newer markets for growth and yesterday's trading update showed that, for the first time, it has more mobile customers in eastern Europe, Asia and Africa than in its traditional western European business. Out of a total customer base of 252 million, nearly 135 million are outside western Europe.

The company still makes 60% of its profits from the rather more mature euro and pound-denominated markets but the chief executive, Arun Sarin, admitted yesterday: "It is obvious that emerging markets ... will contribute a much larger piece of our revenue and profit in future."
Vodafone said revenues rose by more than £1bn to £9.2bn in the three months to December. Growth was 2.2% in Europe but 13.8% elsewhere. The figures were slightly better than expectations but in a subdued market, Vodafone's shares were a little lower.

Vodafone has had problems establishing its broadband service within the U.K. this is because of stiff competititon from other broadband services. previous companies that only offered modile phone tarriffs now have to bring more revenue in, for example like virgin. t has branched out in to many services for customers. So in order to compete vodafone have to up their game. they do have more customers globally but are not recognized within the U.K. personally myself i didnt know Vodafone offered a broadband service until i read this article.