Vodafone cries out on behalf of the poor (and themselves we think)

In a scathing response to European Commissioner Viviane Reding’s report on the mobile industry in Europe, Vodafone claims 40M million users, most of them “poor” pay as you go customers, may have to cancel their mobile service if her proposed changes to call termination charges go into effect. Termination charges are the fees mobile operators charge each other (and land line companies) for connecting to their networks. Currently mobile operators in Europe charge each other an average of 8 cents per minute. Reding proposes a reduction of these fees to 1 to 2 cents per minute. A reduction in fees is usually perceived as a good thing except these fees account for 15 to 20% of an operators revenue. That’s a good chunk of change for the mobile operators and the loss of that guaranteed revenue source has them, (well, at least Vodafone) shaking in their boots and spouting forth rhetoric.

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