Vodafone to Cap Global Roaming Fees At $5 a Day

By: Zain Nabi  |   August 3rd, 2013   |   News

In an attempt to counter the decline in its consumer base, Vodafone has come up with a new offer, introducing global roaming plan for $5 per day only. The users can now make unlimited free calls and send a number of messages by using this plan while traveling to the UK, US or New Zealand.

 

During the past few years, Vodafone has witnessed a dramatic decline in its number of users. This apparently is a result of high roaming charges. Vodafone is one of the biggest and leading mobile communications companies in the international market and had a consumer base of about 289 million in 2008.

 

The move to reduce roaming charges is aimed at attracting those customers back to the network who have stopped using it. The company expects to add more names in the list of the countries where reduced roaming charges would apply.

 

Bill Morrow, Chief Executive of Vodafone Australia said in a press conference, Financial Review:

 

“In the first half of 2014 we’ll be back in positive territory.”

 

Vodafone aims to beat main rivals, Telstra and SingTel-Optus, through its extensive global network. Morrow said:

 

“We also have similar management looking after [networks] in these countries where noone else does. SingTel only has Australia and Singapore … compared to our portfolio. “I can call the Vodafone group management and say ‘hey this is good for you.”

 

Following is the two-fold business approach of Vodafone:

 

To provide new features and introduce new services that help attract more and more customers. This includes the users who always want something new on their mobiles especially the users of the US, UK and New Zealand.

 

Vodafone is continuously busy in looking at new and innovation opportunities in the emerging markets. These opportunities are especially for the region of Africa and less developed areas where the use of mobile phone is still not that common.

 

These approaches not only enhance the reputation of the company but also build customer loyalty. We will see if the recent measures taken by Vodafone will help its cause of retaining and expanding its consumer base or not.