Vodafone says it has passed its debt reduction target, after it sold its stake in Italian company Infostrada.
Vodafone believes its debt figure, currently around £7bn, is now lower than most of its rivals.
The sale of telecoms company Infostrada to Italian state-owned utility Enel was completed at a reduced price after share prices fell in recent weeks.
Vodafone had agreed a £7.7bn price tag in October, but that was subsequently reduced to around £6 billion earlier this month.
Newbury-based Vodafone said the sale means it has now exceeded its target of cutting debt to at least £10bn by the end of March.
The figure had stood at more than £13bn in September, but the sale of Vodafone's stake in France Telecom for £7bn helped the cause.
Vodafone's debt mountain had risen after bidding for third generation mobile phone licences and the acquisition of rival firm Mannesmann.