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The introduction of price caps on overseas calls is the latest in a series of blows that is forcing Britain’s major mobile operators to rethink strategy.
Charges on overseas calls account for up to 18 per cent of revenue and the EU decision will usher in a new round of cost-cutting and rationalisation. Slow growth and fierce pricing pressures have already led to pacts between deadly rivals Vodafone and Orange, who now share networks.
With customers expecting cheap or even “free” calls and bargain-priced “bundles”, operators can no longer raise prices or cut handset subsidies. Vodafone put a brave face on the decision, saying its new pricing measures are largely in place.
That may be so, but for it and others, the alternative is job cuts and outsourcing deals.
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