Price transparency

Clarifying choices – our answer

During the Telecom Time conference in December 2011 Jens Schulte-Bockum, CEO of Vodafone Netherlands, acknowledged that the telecom sector has a major reputation problem (read the blog about this). He admitted that Vodafone had not explained the following clearly:

  • That we had offered mobile internet cheaply in the beginning to stimulate usage, while also having to invest billions in UMTS licences and rolling out the network
  • That the price of the best-selling handset (supplied with a subscription) had become four times more expensive over a three-year period
  • That data speeds on handsets had risen by 400% and that we had to invest continuously to handle the volume of mobile data traffic, which has increased tenfold since 2008
  • How much data customers use

It is much fairer and more efficient if end users who make relatively little use of the internet pay less than users who use relatively large volumes of data. One of the starting points in the new price plan for 2012 is therefore that consumers pay according to their data consumption. The transition has taken place gradually, in line with the changing behaviour of the majority of customers.

Read the factsheet (pdf) on the development of Vodafone's tariffs in the Netherlands.

Facts

  • Vodafone Netherlands invested billions in purchasing UMTS licences and rolling out the network
  • We invested EUR 220 million in the network and IT in 2011
  • The price of the best-selling subscription handset quadrupled over a three-year period
  • 400% increase in data speed over a period of two years (in 2008 the maximum theoretical speed was 3.6 Mbps; since 2010 the maximum theoretical speed has been 28.8 Mbps)