Qualified advisers answering your
Financial Questions
call 0800 092 1245

Vodafone Warns Of Risk To Overseas Services

News that the European Commission are looking to reduce termination rates between mobile phone operators by as much as 70% between now and 2012 has prompted Vodafone to suggest a doomsday scenario for the industry. Termination charges are the charges which one operator charges another to connect a call - thereby ensuring near worldwide connectivity - and seem to average around 8 euro cents a minute at the moment.

The European Commission are pushing through major changes to the structure with rates expected to fall to around 2.5 euro cents a minute by 2012. Vodafone is arguing that such a move will see mobile network operators struggle as they would need to introduce new charges or increase existing ones to make up for the short fall. The group has suggested that this could lead to as many as 40 million mobile phone users across Europe switching off for good and moving to alternative communication devices.

While it seems unlikely that the European Commission would look to push through changes if they were detrimental to the long term viability of the industry there is a need to introduce more competition and ensure the larger players do not monopolise the sector. Finding the balance between the two will be the difficult bit!

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details