Vodafone has reported a 6.2% decline in its German business for the second financial quarter, citing a new law that gives tenants in Multiple Dwelling Units (MDUs) the right to choose their own TV and broadband providers as the primary reason for the drop.

The communications giant, which acquired the former Kabel Deutschland business in 2013, stated that it had retained 4 million MDU subscribers, aligning with its expectations and representing approximately half of the 8.5 million MDU households. Bulk buying of TV services through landlords and letting agents had been a significant source of connections for Vodafone, making the MDU transition a major factor in the decline.

The much-anticipated ruling came into full effect in July 2024, coinciding with a decrease in Vodafone's broadband base following price increases in the previous year. Despite the challenges, Vodafone announced in October that it had become the largest fibre provider in Germany through wholesale agreements with Deutsche Telekom & Deutsche Glasfaser. This allows Vodafone to market gigabit speeds to nearly 5 million households beyond its existing cable network.