Vodafone Unveils Mid-Market UK Broadband Service
LONDON -(Dow Jones)- Vodafone Group says it will enter the UK broadband Internet and fixed-line telephony market on Jan 8., offering a mid-market priced package of GBP25 (US$47.85) a month.
The company first unveiled in September its planned fixed-line service in the UK in cooperation with BT Group, as part of its asset-light approach to rolling out broadband and fixed line services in its key markets before the end of the current financial year in March 2007.
Vodafone has already launched similar services in Italy and Germany.
The UK mobile phone operator said its Vodafone at Home service will be available to existing contract customers. The company will roll out an 8-megabit unlimited broadband service across the UK, by leasing broadband infrastructure and engineering expertise from BT's wholesale division.
The company will also offer fixed-telephony line rental, inclusive UK landline calls, security software and 25% off calls to mobiles, as part of the GBP25 a month package.
But with rivals Carphone Warehouse, British Sky Broadcasting and Pipex all offering cheaper broadband packages Vodafone will face tough price competition.
Tim Yates, director of Vodafone UK's consumer business said in a statement that the company is confident it can meet customer demand through a gradual rollout to customers. Other broadband companies, such as Carphone Warehouse, have been criticized recently for fueling demand, then being slow in delivering the service to customers.
"With our managed rollout and commitment to customer service we are confident that we will be able to manage demand," said Yates.
Vodafone's asset-light approach differs from that of Carphone Warehouse and BSkyB, which argue they can make more profits by investing in their own infrastructure through a process called local loop unbundling.
In May, Vodafone Chief Executive Arun Sarin said Vodafone was keen to get more involved in providing communications services to customers in the home, as part of a bid to grow additional revenues, as the mobile phone market reaches higher penetration levels.
At 0912 GMT shares were up 1 pence, or 0.75%, at 135 pence.
Company Web site: http://www.vodafone.com
-By Daniel Thomas, Dow Jones Newswires; 44-20-7842-9264; dan.thomas@dowjones.com
(END) Dow Jones Newswires"
Posted to the site on 10th November 2006
