Vodafone Group Plc
23 May 2007
23 May 2007
VODAFONE HAS ALREADY CUT EUROPEAN ROAMING COSTS BY OVER 40%
OPT-IN CLAUSE ENABLES VODAFONE PASSPORT CUSTOMERS TO CONTINUE TO BENEFIT FROM
LOWER RATES THAN PROPOSED EURO-TARIFF
TRANSPARENCY MEASURES SUPPORT CUSTOMER CHOICE
Following today's vote in the European Parliament to reduce roaming prices,
Vodafone announces that its customers have already seen the average cost of
voice roaming in Europe fall by over 40% compared to summer 2005. This is the
result of various initiatives which Vodafone has introduced in recent years to
provide better value roaming services to its customers, including those on both
the Vodafone Passport and Vodafone World tariffs.
Since its launch in 2005, the Vodafone Passport tariff has attracted over 12
million customers across all of Vodafone's businesses and Partner Networks. The
vast majority of these customers are in Europe, and they have already been
enjoying an average cost per minute for making and receiving calls which is
lower than the 40 cents* proposed by lawmakers for the Euro-tariff, which will
be introduced later this year. An opt-in clause proposed by European lawmakers
will ensure that customers who have already chosen Vodafone Passport can remain
on this tariff and will not be forced to take the Euro-tariff.
Arun Sarin, Chief Executive of Vodafone said:
'Vodafone has led the market by offering better value and choice to our roaming
customers. As a result, they pay 40% less on average today and around 12 million
have been able to choose our Passport tariff, which already offers a better deal
than the Euro-tariff proposed in the regulation.'
Vodafone also confirms that over 80 million of its European customers can
already receive roaming tariff information, free of charge, whenever they
travel. Vodafone believes that this transparency helps customers to decide for
themselves how and when to best use roaming services. The transparency measures
now being proposed by European lawmakers are already largely in place for
Vodafone customers.
* The Euro-tariff proposed by the European Parliament would impose a maximum
charge of €0.49 per minute for making calls and €0.24 per minute for receiving
calls for the first 12 months of regulation. The average cost per minute for
both making and receiving calls under the Euro-tariff is then calculated by
assuming that two-thirds of all roaming calls are made and one-third of roaming
calls are received (i.e. 0.49x 0.66+0.24x0.33). These usage assumptions are
consistent with those used by the Commission in its Regulatory Impact
Assessment.
- ends -
VODAFONE, Vodafone Passport and Vodafone World are trade marks of the Vodafone
Group. Other products and company names mentioned herein may be the trade marks
of their respective owners.
For further information:
Vodafone Group
Investor Relations Media Relations
Tel: +44 (0) 1635 664447 Tel: +44 (0) 1635 664444
NOTES TO EDITORS
Vodafone Passport
Vodafone Passport, the innovative roaming tariff, was launched in May 2005 and
allows millions of Vodafone customers to take their home price plans abroad for
a small connection fee per call, the first roaming tariff to enable customers to
do so. Over 12 million customers, the vast majority of which are in Europe, have
chosen to opt-in to this free-of-charge service.
Retail Pricing
On 8 May 2006, Vodafone announced that it would cut the average cost of roaming
by at least 40% by April 2007 when compared to summer 2005. This reduction has
now been implemented. The reduction has been identified by calculating the cost
per minute of both making and receiving calls for all Vodafone's European
customers who roamed within the EU during the month of April 2007 and comparing
this to the average cost per minute for all European customers who roamed within
the EU during the summer of 2005 (June-August) The average cost per minute for
customers from Vodafone's EU subsidiary operating companies has fallen by at
least 40% overall on the basis described above.
The confirmation of the reduction of 40% has been part of a continuous
commitment from Vodafone to reduce the costs of roaming calls which began in
2005 with the introduction of Vodafone Passport. Similarly, Vodafone has also
been working to reduce data roaming costs with a flat-rate €12 daily tariff for
laptop users which was announced in March 2007 and will be available from 1 July
2007.
Transparency
Vodafone confirmed today that at least 80 million European customers can obtain
personalised information about the cost of roaming, free of charge.
Customers will be able to text/call Vodafone whenever they are at home or abroad
in order to receive a free text from Vodafone which tells them the cost of
making and receiving calls in their chosen market.
In May 2006, Vodafone committed to introducing a text information service across
12 countries in Europe in which Vodafone has a subsidiary. This is now available
in all markets, except the UK and Hungary where customers are able to request
and receive free information only when in their home market, pending full
implementation of the service.
Wholesale Pricing
On 8 May 2006, Vodafone committed that, from 1 October 2006, it would offer on
request, to all mobile network operators licensed and established within the EU,
an average charge for roaming on Vodafone's European subsidiary networks of no
more than € 0.45 per minute for roaming calls within the EU on a reciprocal
basis. By April 2007, agreements with other mobile operators representing the
vast majority of Vodafone's wholesale traffic had been concluded at wholesale
rates of €0.45 per minute or less.
About Vodafone
Vodafone is the world's leading international mobile communications group with
operations in 25 countries across five continents and over 200 million
proportionate customers by the end of January 2007, of which 100 million are in
Europe, as well as 38 partner networks. For further information, please visit
www.vodafone.com
This information is provided by RNS
The company news service from the London Stock Exchange
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