Vodafone, new price increases for users of some rechargeable offers

Vodafone

After the price increase of the offers put in place by WinTre, which we talked about in recent days, it is now Vodafone's turn. Starting next month, the operator will revise the cost of some rechargeable offers for private customers. Are you among the users affected by these unilateral contract changes?

Vodafone announced about a month in advance that starting from Wednesday 23 June 2021 some users will see the monthly cost of their rechargeable SIM cards increase. The announcement was made on the Vodafone Informa portal and was supported by the following motivation: "Vodafone constantly invests in the improvement of its mobile network, with the aim of satisfying the growing need for connection in the country and to offer customers a service that is always more performing, everywhere ".

Customers who will be affected by these changes will start to receive an informative SMS starting from today, 20 May 2021.

Vodafone will increase the cost of the affected offers, not listed in the communication, of 1.99 euros / month and in exchange it will offer users the possibility of activating additional free gigs for 12 months or switching to a new offer by calling 42590 from 2 to 22 June. The reports of some users on the network indicate that the volume of traffic offered in exchange for this increase is equal to 50GB.

Since this is a unilateral modification of the contract, Vodafone obviously guarantees the possibility for customers to switch to another operator without incurring penalties as follows:

"If [customers] do not accept it, pursuant to art. 70 paragraph 4 of Legislative Decree no. 259 of 1 August 2003, of Resolution 519/15 / CONS and of the General Contract Conditions, may withdraw from the contract or switch to another operator keeping their number without penalties or deactivation costs by 22 June specifying as the reason for the withdrawal 'modification of the contractual conditions'.

They can exercise the right of withdrawal, without additional costs other than those possibly related to the chosen method, on voda.it/disdetta, in our stores, by sending a registered letter with return receipt to Vodafone Customer Service, P.O. Box 190 - 10015 Ivrea (TO), by writing via PEC to disdette@vodafone.pec.it or by calling 190, specifying the reason indicated above. Any residual installments of the activation cost and / or of the device (s) associated with this offer will be paid with the same frequency and with the same payment method previously indicated, alternatively by communicating it in the withdrawal request, they may request payment in a single solution ".

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Vodafone shares sink after revenues slump

© Provided by The Guardian Photograph: Dominic Lipinski/PA

Vodafone was the biggest faller on the FTSE 100 on Tuesday as investors reacted to lower than expected profits, a decline inrevenues due to the impact of pandemic travel bans and a drop in smartphone sales.

While Vodafone swung back to the black last year, reporting profits of €536m (£461m) compared with a loss of €455m in 2019, the result was at the lowest end of the company’s guidance and disappointed City expectations. Shares fell 9% to 129p.

Related: How to put the spiralling cost of a mobile phone on hold

The mobile operator reported a fall in total group annual revenues of 2.6% to €43.8bn, blaming factors including a drop in roaming revenue – the charges some customers pay when using their phones abroad – as pandemic restrictions halted most travel and tourism.

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“People being less ‘mobile’ in general is bad news for mobile telecoms groups like Vodafone,” said Russ Mould, the investment director of AJ Bell. “Vodafone saw its revenue and earnings hit by lower roaming charges as individuals were unable to travel thanks to the pandemic. Handset sales have also slumped, suggesting we’re not so bothered about having the latest, fancy new phone when we’re stuck at home.”

© Photograph: Dominic Lipinski/PA Vodafone reported a drop in total group annual revenues of 2.6% to €43.8bn, blaming factors including a drop in roaming revenue as pandemic restrictions halted most travel and tourism.

Nick Read, the Vodafone chief executive, said the company was in talks with BT about potentially partnering in its new plan to extend its rollout of full fibre broadband from 20m to 25m premises by the end of 2026. Read added that Vodafone was in talks with “many players” about its plans for full-fibre broadband expansion, not just BT.

The company’s biggest market, Germany, which accounts for 31% of total revenues, performed strongly, increasing total revenues by 7.5% to €13bn last year. In the UK, which accounts for 13% of Vodafone’s business, revenues fell 5% to €6.1bn.

Vodafone’s European mobile customer base grew by 2% to 65.4 million, with the rate of customers leaving the company falling from 14.6% to 13.7%, as broadband customer numbers rose from 25 million to 25.6 million.

Investors were also unhappy at an increase in annual capital expenditure, up from €7.85bn to €8bn, which will hit its free cash flow. Read said the investment in 5G and broadband infrastructure would pay off over the longer term.

“The world has changed,” said Read. “The pandemic has shown how critical connectivity and digital services are to society. Vodafone is strongly positioned and through increased investment, we are taking action now to ensure we play a leadership role and capture the opportunities that these changes create.”