700MHz Proposal

To be attributed to Chief Strategy Officer Dan Lloyd

Vodafone is proud of its role as the cornerstone of competition in the Australian mobile market, offering customers the freedom and choice to connect the way they want.

Over recent years, we have invested billions of dollars in our new 4G network, which is strong, reliable and now reaches more than 22 million Australians. We have long advocated for changes to the telco policy and regulatory environment, including USO reform.

These would allow Vodafone and other operators to compete, particularly in regional and rural areas where other players have been protected from competition for too long. Customers in these areas, who are increasingly choose mobile over fixed services, are paying too much for mobile, and can only benefit from increased competition.

For several years, 15MHz of 700 spectrum has been lying unutilised. Vodafone recently put forward a proposal to acquire some of this spectrum. Our proposal is a win-win for competition and for
government as we have offered to pay the same effective price for the spectrum as the price paid in the 2013 auction.

The Australian Government would be fairly compensated for the spectrum at the market price, while customers in regional and rural areas would benefit from increased competition as it would
allow us to extend coverage into these areas.

Background

Vodafone has not sought to acquire all of the remaining spectrum, with an additional 5MHz of spectrum remaining for another purchaser should they wish to make an offer to government.