Vodafone ramps up call charges

 

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By Matthew Sparkes

Posted on 19 Aug 2008 at 11:13

Vodafone has increased its call charges for both Pay As You Go customers and contract users who stray over their allocation of free minutes.

Pay As You Go users will see an increase from 15p per minute to 20p for standard calls, beginning in September, while contract customers will see a jump from 12p to 15p.

With the average cost of living in the UK rising rapidly, the move is likely to be a further frustration for Vodafone's 18 million customers. The company is not the first to take the step in recent months, though. Both T-Mobile and O2 also raised their prices in July.

Many believe the increases are a reaction to an EU ruling that saw roaming charges cut considerably. Raising standard call costs will help to recoup some of the lost revenue. However, Vodafone insists this is only part of the reason for the inflation.

The EU has also been investigating the termination rates suppliers charge to landline and other mobile operators for connecting calls to handsets on its network.

The EU telecoms commissioner, Viviane Reding, has suggested that these should be reduced by up to 70%.