Vodafone India today said its service revenue increased 10.3 percent to $1,743 million (1,026 million pounds) in the first quarter of fiscal 2014-15.

The growth was driven by continued customer growth, strong data usage and improved voice pricing.

Vodafone is investing heavily in 3G roll outs in India.

“In India, where we aim to have 95 percent 3G outdoor  coverage in targeted urban areas over the next two years, we have taken 3G coverage on this footprint to 89 percent, with a further 2,305 sites added,” said Vodafone CEO Vittorio Colao.

Mobile customers increased by 3.3 million during the quarter giving a closing customer base of 169.9 million at 30 June 2014, said Vodafone India.

Data usage grew 102 percent during the quarter, primarily driven by mobile internet customer growth and a 46 percent increase in usage per customer.

At 30 June 2014 active data customers totaled 57 million, including 10 million 3G customers and 29 million smartphone users representing 17 percent penetration of the customer base.

M-Pesa continues to perform well, with national coverage through approximately 66,000 sales agents, 65 percent of which were in rural areas, with 1.5 million registered customers at 30 June 2014, of which approximately 300,000 are active.