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Vodafone cuts roaming charges

Mon, 08 May 2006

Mobile phone giant Vodafone is to cut charges for "roaming" calls by 40 per cent, the company has announced.

The world's largest mobiles group and its smaller rivals have been under mounting pressure to reduce the cost to customers of making calls while abroad since March, when the European Telecoms Commissioner proposed new legislation on the issue.

The company says the average cost will fall from more than 90 cent a minute to less than 55 cent a minute. Vodafone says it is also willing to enter into agreements with other mobile operators to help cut roaming costs in Europe. It says it will offer other operators access to its network at a wholesale price of 45 cent a minute from October 2006, providing they offer the same rate for their networks.

EU Telecoms Commissioner Viviane Reding pledged to act after evidence of glaring roaming charge differences and "staggering" rates in some cases.

Arun Sarin, Vodafone's chief executive, said, "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."

Mr Sarin also reiterated his opposition to new rules compelling operators to set specific charges. He said, "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."

Jim Hyde, T-Mobile's UK managing director, said, "For a long time, we've said roaming rates are too high. We have not needed regulation to encourage us to cut roaming costs."
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