Vodafone to launch fixed line services in Jan-07

15 Nov 2006

Mobile operator Vodafone UK has confirmed that it will launch broadband internet and fixed line telephony services from 8 January 2007. The cellco says its GBP25 per month ‘Vodafone at Home’ product will include monthly line rental, unlimited broadband at download speeds of up to 8Mbps, free landline calls anytime to another UK landline, a 25% discount on fixed-to-mobile calls and a modem. The service is available to new and existing contract customers and utilises the network of fixed line incumbent BT, which covers 97% of UK homes. Vodafone says it will connect clients within ten working days of receiving an order; typically, customers are waiting up to five weeks for a broadband connection from rival providers at present. Connection is subject to an 18-month contract and users are billed separately for their fixed and mobile services. Vodafone is also offering users a 50% discount on its Mobile Connect USB Modem, which can be used with both the fixed broadband network and Vodafone’s cellular W-CDMA and HSDPA services.

According to TeleGeography’s GlobalComms database, earlier this year Vodafone announced it would be looking to expand its remit beyond pure mobile services, with the aim of generating around 10% of its annual revenues over the next three to four years from other businesses, including converged fixed-mobile and internet services. It was linked with a takeover bid for ISP Tiscali UK, but the rumours amounted to nothing and in September it struck a deal with BT for wholesale broadband internet access. Competition in the UK broadband market is intense, with retailer Carphone Warehouse and pay-TV broadcaster BSkyB recently announcing cut-price packages, whilst Vodafone’s mobile rivals Orange and O2 have made great strides in the internet access market via affiliate companies.

United Kingdom, Vodafone UK