Vodafone slashes roaming charges |
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Mon, 08 May 2006 12:30
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LONDON - Mobile giant Vodafone confirmed on Monday that it would be slashing the cost of using other networks when traveling internationally by about 40 percent. Vodafone will thus bow to the pressure from the European Union to cut the roaming charges, which were astronomical. The proposed changes are to come into effect within a year.
The company said the move to reduce charges would benefit its 30 million customers who undertake frequent international travel. It added that the costs for the roaming package in Europe would fall from €0.90 a minute to less than €0.55.The world’s largest mobile phone group has been under considerable pressure to reduce the roaming charges since March when the European Telecoms Commissioner said that they would be looking to legislate the issue.
"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," said Arun Sarin, Vodafone's chief executive.
Vodafone, which had introduced the Vodafone Passport tariff last year said it was willing to enter into an agreement with any European operator in order to limit the charge to €0.45 a minute to make calls to phones covered by other networks.
"By addressing both retail and wholesale prices, we are providing a platform for sustainable, lower retail prices across Europe in the future," Sarin said. However he was of the opinion that the market and not regulators was the best judge of the rates to be imposed. "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," Sarin pointed out. "We believe the market is the best way to meet customer needs, not regulation."
Shares in the company were trading 0.5 pence higher at 128.5 pence in early transactions.
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