Vodafone, the world's largest mobile phone operator, is to spend hundreds of millions of dollars in Australia over the next two years.

High street mobile phone chain Carphone Warehouse said it was on course for continued strong growth after seeing profits soar 22%.

Vodafone is telling Australian regulators it will transfer some customers to a competitor as part of its bid to acquire Cable & Wireless Optus.

Vodafone says it is making an indicative proposal to buy Australian firm Cable & Wireless Optus (CWO) in order to expand its presence in the country.