8th May 2006 08:00
Vodafone Group Plc08 May 2006 8 May 2006 VODAFONE TO REDUCE THE COST OF EUROPEAN ROAMING BY AT LEAST 40% BY APRIL 2007 Vodafone announces today that average European roaming costs for Vodafonecustomers will be cut by at least 40% by April 2007, when compared to lastsummer. This will benefit over 30 million Vodafone customers who roam everyyear, and will see the average cost of roaming in Europe fall from over €0.90 toless than €0.55 per minute. Vodafone also announces that it will enter into reciprocal wholesalearrangements with any other European operator at no more than €0.45 per minutefor voice calls within the EU from October 2006. This will enable both Vodafoneand other European mobile operators to continue to lower the cost of roaming tocustomers outside of their own networks. Arun Sarin, Chief Executive, Vodafone, said: "Customers want simplicity and value for money when they're travelling abroad.They get it with Vodafone Passport, which we launched last year, allowingcustomers to take their home tariff abroad with a small additional per call fee.Today Passport provides savings of at least 30% for more than 6 million Vodafonecustomers. "The success of Passport shows the demand for simple, great value roaming inEurope and today we're showing that Vodafone will continue to lead the industryin providing it. "The European Commission and European Parliament have made it clear that theyexpect to see change. Our announcement today shows that the market, led byVodafone, is meeting those expectations by providing what our customers tell usthey want. Also, by addressing both retail and wholesale prices, we areproviding a platform for sustainable, lower retail prices across Europe in thefuture. We understand the powerful appeal that roaming has in the aspiration fora Europe in which people can travel, live, move, work and invest freely. Webelieve the market is the best way to meet customer needs, not regulation". VODAFONE'S PROPOSALS IN DETAIL Retail Pricing In 2005, Vodafone launched Vodafone Passport, a service which enables customersto take their home price plan abroad for a small connection fee per call.Passport customers have, on average, saved at least 30% on the cost per voiceminute when roaming within the EU during the period June-September 2005 whencompared to their average cost per minute during the period June-September 2004.By May 2006 there were over 6 million customers using Vodafone Passport withinthe EU, with 100,000 signing up free of charge every week. Vodafone now proposes to implement price reductions which will deliver averagesavings of at least 40% for European roamers. This is done by calculating thecost per minute for all Vodafone's European customers who roam within the EUduring the month of April 2007 and comparing this to the average cost per minutefor all European customers who roamed within the EU during the last summerperiod (i.e. June-August 2005). Vodafone proposes that the average cost perminute for customers of its subsidiary operating companies will fall by at least40% in each national market on the basis described above. The average cost per minute for Vodafone's European customers when roamingwithin Europe during the period June-August 2005 was over €0.90 per minute.Vodafone anticipates that the average cost per minute for international roamingwithin Europe will fall to below €0.55 per minute by April 2007. Wholesale Pricing Vodafone can deliver significant cost advantages to customers who roam as aresult of its network coverage within Europe. Vodafone has subsidiary companiesin 11 of the EU25 Member States and affiliate interests in a further threemarkets. In order to provide roaming services outside of these markets, Vodafoneenters into wholesale arrangements with other mobile operators who are not partof the Vodafone Group or which are affiliates. Vodafone wishes to reduce the costs of roaming for its customers and animportant component of this strategy is to reduce the wholesale costs that itpays to other mobile operators in providing roaming services throughout the EU.Vodafone recognises that other operators will also wish to lower their wholesaleroaming costs and that they may seek access to Vodafone's pan-European networkin order to do so. To achieve these objectives Vodafone proposes to offer onrequest, to all and any mobile network operator licensed and established withinthe EU25, an average charge for roaming on Vodafone's European subsidiarynetworks of no more than €0.45 per minute for roaming calls within the EU, downfrom an average wholesale rate of over €0.70. This offer is conditional upon therequesting mobile network operator offering an average charge of no more than€0.45 per minute (or a lower reciprocal charge by mutual agreement) for all orany European mobile networks over which it exercises management control. In order to support the development of lower retail prices and the continuedgrowth of Passport during 2006, Vodafone intends that such wholesalearrangements will be available to other mobile operators on request by 1 October2006 at the latest. NOTES TO EDITORS VODAFONE'S ROAMING SERVICES Vodafone World • Vodafone's default roaming service • Offers a fixed price per minute on a regional pricing principle Vodafone Passport • Launched May 2005 • Offers home price plan abroad for a small connection fee per call • More than 6 million customers have opted-in to the service, free of charge • More than 100,000 customers are signing up to the service every week - ends- For further information: Vodafone Group Investor Relations Media RelationsTel: +44 (0) 1635 664447 Tel: +44 (0) 1635 664444 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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