Vodafone increases mobile phone charges to recoup lost income
Users of Vodafone's pay-as-you-go service will be faced with price rises of up to a third next month as the mobile giant attempts to claw back some of its lost revenue from increased regulation.
- Millions pay more to offset Ofcom price cuts
- Pay as you go customers face 5 pence per minute rise
Vodafone has approximately 11 million pay as you go customers, who will witness their call costs increase from 15 pence per minute to 20 pence as of September. The company are also increasing mobile phone call costs for its contract customers who exceed their monthly minutes, from 12 pence to 15 pence a minute.
In addition to this, the company will also be increasing the cost of calling 0871 numbers to 35 pence from 25 pence a minute, while the cost of phoning the 0870 numbers (often used by call centres) will rise from 15 pence to 20 pence per minute.
Vodafone, the UK's 2nd largest mobile telecommunications provider, are increasing prices after rivals T-Mobile and O2 raised their prices in July. T-Mobile raised its prepaid minimum call charge from 10 pence to between 15 pence and 25 pence, depending on the customer's tariff.
Vodafone stated that it has not increased its charges for two years and that only part of the reason for the price rises was "regulation".
Industry observers believe the operators want to push up charges to recoup some money being lost as regulators cap prices.
Published: 26th August, 2008
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