Vodafone Group PLC
26 March 2001
26 March 2001
VODAFONE UK REFOCUSES BUSINESS ON CUSTOMER RETENTION AND DEVELOPMENT
Vodafone UK, a subsidiary of Vodafone Group Plc, today announces that from 1
May 2001, it will change the prepay terms for Distributors of its Pay as you
Talk products and Service Providers of its Wholesale Prepaid products,
reducing the subsidies and bonuses it currently pays. In addition, the company
also announces the discontinuation of the sale of Vodafone 'All in One' mobile
phone packages through its wholly owned service provider companies.
The changes, representing the first details of Vodafone UK's modified
commercial policies, follow last week's announcement by Chris Gent, Chief
Executive of Vodafone Group Plc on the change in commercial policies, margin
improvement and cash flow growth of Group companies, with the increasing focus
on customer retention and development, rather than customer acquisition.
Peter Bamford, Chief Executive of UK, Middle East and Africa Region,
explained: 'These changes in Vodafone UK's commercial policies reflect the
move of the UK market in to a phase of greater maturity and our recognition of
the need to reduce the current levels of expenditure on customer acquisition.
We aim to reward our distribution channel for quality customers, rather than
the quantity of customers, thereby ensuring the increasing focus on customer
retention and development across the business.'
From 1 May 2001, Vodafone UK will reduce the network activation bonuses it
pays to Service Providers of its Wholesale Prepaid products and Distributors
of its Pay as you Talk products by £12. This is in addition to the £6
reduction in Pay as you Talk bonuses in place from 1 February 2001. As a
result of this change, Vodafone UK expects the price on the high street of its
Vodafone Pay as you Talk packages to be in the region of £70 for entry level
products, although Distributors and Service Providers will themselves
determine their own retail prices.
Vodafone 'All in One' mobile phone packages, which include a phone together
with connection to the network, a year's line rental and bundled monthly
minutes were also principally introduced to further stimulate customer
acquisition. From 1 May 2001 these packages will no longer be offered to new
customers through Vodafone's in-house service provider companies and their
distribution channels.
- ends -
For further information contact:
Vodafone Group Investor Relations:
Melissa Stimpson, Investor Relations Executive
Jon Earl, Investor Relations Manager
Telephone: +44 (0) 1635 33251
Tavistock Communications
Lulu Bridges or John West
Telephone: +44 (0) 207 600 2288
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