Vodafone is set to scrap monthly line rental charges.
The mobile phone giant has announced that new and upgrading home broadband customers in the UK will not pay the current £18 monthly fee.
When customers tie into an 18 month contract, they will pay a minimum of £22 per month for broadband, which will still be accompanied by a landline connection and phone number.
However, according to some the monthly cost is not being abolished, but rather incorporated. Vodafone’s line rental charges are feeding into standard broadband rates to create one monthly package – causing some to call the move out as a PR stunt.
uSwitch broadband expert Ewan Taylor-Gibson said: “To be clear, Vodafone isn’t really abolishing line rental charges, it’s simply combining the charge into its fibre pricing.
“This is because broadband providers are under pressure from the Advertising Standard Authority (ASA) to change advertised pricing so customers see a cost per month that includes lines rental; so Vodafone is stealing a march on its rivals.”
According to others, despite leading the market with the removal of unforeseen and often costly line rental charges, Vodafone has a long way to go to keep up with its competitors.
Analyst Paolo Pescatore from CCS Insight said: “Vodafone’s lack of content still represents a huge headache for the company as all of its rivals are bundling entertainment, movies and sports with their broadband deals.
“We are moving into a key period when all multiplay providers are trying to entice subscribers with attractive promotions ahead of the new Premier League football season.
“We are expecting a busy second half of the year with Sky’s entry into mobile, Vodafone’s debut in TV and Virgin Media’s new set-top box.”Return to internet news headlines
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