Vodafone posted an as expected first-quarter 3.5 percent drop in its key organic service revenue as increasing competition in Germany and Italy wiped out improvements in India at the world's second largest mobile operator.
Vodafone, which has been battling increasing regulation, recession and competition across Europe in the last year, said on Friday its organic service revenue was down 5.1 percent in Germany, its biggest European market.
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Service revenue in Britain was down 4.5 percent while Spain was down 10.6 percent and Italy down 17.6 percent, as customers sought to save money by making fewer calls and retaining older handsets, and as rivals stepped up competition.
Overall, the fall of 3.5 percent was slightly improved on the record fall of 4.2 percent recorded in the fourth quarter, but it is still a sharp drop for a group that was posting growth only 12 months ago.