European Roaming Costs
Vodafone Group Plc
08 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 Vodafone
customers will be cut by at least 40% by April 2007, when compared to last
summer. This will benefit over 30 million Vodafone customers who roam every
year, and will see the average cost of roaming in Europe fall from over €0.90 to
less than €0.55 per minute.
Vodafone also announces that it will enter into reciprocal wholesale
arrangements with any other European operator at no more than €0.45 per minute
for voice calls within the EU from October 2006. This will enable both Vodafone
and other European mobile operators to continue to lower the cost of roaming to
customers 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, allowing
customers 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 Vodafone
customers.
'The success of Passport shows the demand for simple, great value roaming in
Europe and today we're showing that Vodafone will continue to lead the industry
in providing it.
'The European Commission and European Parliament have made it clear that they
expect to see change. Our announcement today shows that the market, led by
Vodafone, is meeting those expectations by providing what our customers tell us
they want. Also, by addressing both retail and wholesale prices, we are
providing a platform for sustainable, lower retail prices across Europe in the
future. We understand the powerful appeal that roaming has in the aspiration for
a Europe in which people can travel, live, move, work and invest freely. We
believe 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 customers
to 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 voice
minute when roaming within the EU during the period June-September 2005 when
compared to their average cost per minute during the period June-September 2004.
By May 2006 there were over 6 million customers using Vodafone Passport within
the EU, with 100,000 signing up free of charge every week.
Vodafone now proposes to implement price reductions which will deliver average
savings of at least 40% for European roamers. This is done by calculating the
cost per minute for all Vodafone's European customers who roam 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 last summer
period (i.e. June-August 2005). Vodafone proposes that the average cost per
minute for customers of its subsidiary operating companies will fall by at least
40% in each national market on the basis described above.
The average cost per minute for Vodafone's European customers when roaming
within Europe during the period June-August 2005 was over €0.90 per minute.
Vodafone anticipates that the average cost per minute for international roaming
within 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 a
result of its network coverage within Europe. Vodafone has subsidiary companies
in 11 of the EU25 Member States and affiliate interests in a further three
markets. In order to provide roaming services outside of these markets, Vodafone
enters into wholesale arrangements with other mobile operators who are not part
of the Vodafone Group or which are affiliates.
Vodafone wishes to reduce the costs of roaming for its customers and an
important component of this strategy is to reduce the wholesale costs that it
pays to other mobile operators in providing roaming services throughout the EU.
Vodafone recognises that other operators will also wish to lower their wholesale
roaming costs and that they may seek access to Vodafone's pan-European network
in order to do so. To achieve these objectives Vodafone proposes to offer on
request, to all and any mobile network operator licensed and established within
the EU25, 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, down
from an average wholesale rate of over €0.70. This offer is conditional upon the
requesting 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 or
any European mobile networks over which it exercises management control.
In order to support the development of lower retail prices and the continued
growth of Passport during 2006, Vodafone intends that such wholesale
arrangements will be available to other mobile operators on request by 1 October
2006 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 Relations
Tel: +44 (0) 1635 664447 Tel: +44 (0) 1635 664444
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