Vodafone Roaming Costs Decrease

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Vodafone and T-Mobile US said that average European roaming costs for Vodafone and T-Mob customers will be cut by at least 40% by April 2007, when compared to last summer. This will benefit over 30 million Vodafone customers who roam every year, and will see the average cost of roaming in Europe fall from over EUR 0.90 to less than EUR 0.55 per minute.

Vodafone also announces that it will enter into reciprocal wholesale arrangements with any other European operator at no more than EUR 0.45 per minute for voice calls within the EU from October 2006. This will enable both Vodafone and other European mobile operators to continue to lower the cost of roaming to customers outside of their own networks.

VODAFONE'S PROPOSALS IN DETAIL

In 2005, Vodafone launched Vodafone Passport, a service which enables
customers to take their home price plan abroad for a small connection fee per call. Passport customers have, on average, saved at least 30% on the cost per voice minute when roaming within the EU during the period June-September 2005 when compared to their average cost per minute during the period June-September 2004. By May 2006 there were over 6 million customers using Vodafone Passport within the EU, with 100,000 signing up free of charge every week.

Vodafone now proposes to implement price reductions which will deliver average savings of at least 40% for European roamers. This is done by calculating the cost per minute for all Vodafone's European customers who roam within the EU during the month of April 2007 and comparing this to the average cost per minute for all European customers who roamed within the EU during the last summer period (i.e. June-August 2005). Vodafone proposes that the average cost per minute for customers of its subsidiary operating companies will fall by at least 40% in each national market on the basis described above.

The average cost per minute for Vodafone's European customers when
roaming within Europe during the period June-August 2005 was over EUR
0.90 per minute. Vodafone anticipates that the average cost per minute
for international roaming within Europe will fall to below EUR 0.55 per
minute by April 2007.

Also, Vodafone can deliver significant cost advantages to customers who roam as a result of its network coverage within Europe. Vodafone has
subsidiary companies in 11 of the EU25 Member States and affiliate interests in a further three markets. In order to provide roaming services outside of these markets, Vodafone enters into wholesale arrangements with other mobile operators who are not part of the Vodafone Group or which are affiliates.

In order to support the development of lower retail prices and the continued growth of Passport during 2006, Vodafone intends that such wholesale arrangements will be available to other mobile operators on request by 1 October 2006 at the latest.

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