Virgin Media O2 offers free roaming in Europe: EE, Vodafone, Three don’t
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One person passes a Virgin Media Mobile Phone Store in London, which was closed due to Covid-19 Pandemic on May 4, 2020.
Tolga Akmen | AFP via Getty Images
Brits enjoy free roaming in Europe since years, but this will change as operators begin to charge fees for the next few months.
Three, Vodafone, and EE all confirmed that roaming charges for the European Union will be reinstated between January 31st and May 23rd.
O2 and Virgin Mobile broke ranks when they said that they would not reintroduce charges. Customers will now be able use their data, make calls, and send messages on the same plan as in the U.K. Virgin Media O2 operates the networks.
CNBC’s Kester Mann said that Virgin Media O2 had opened the roaming doors wide. He is director of consumer connectivity at CCS Insight. The sector will be shocked that Virgin Media O2 is not following the market trend of bringing back charges. Its decision to stay put raises eyebrows and hurts rivals.
“EEE, Vodafone, and Three all confirmed they would reinstate these dreaded fees. It left Virgin Media O2 open to breaking rank and disrupting the market.”
Gareth Turpin is chief commercial officer for mobile at Virgin Media O2. He claimed it in a blogpost Monday that a family of four using their phones every day on a two-week holiday could face around £100 ($136) or more of roaming charges added to their holiday bill if they aren’t with O2 or Virgin Mobile.
Numerous people posted on social media saying that they are leaving EE or Vodafone to join Virgin Media and O2 in order to enjoy the European roaming free of charge.
In 2017, roaming fees were abolished by the EU. In 2017, roaming charges were removed by the EU for all EU members. The EU trade deal in December 2020 provided network operators with the opportunity to reinstate charges.
Virgin Media O2 was created through a $39 billion mergerIt was approved in April. Mann stated that the firm would likely “go hell for leather” in marketing its European roaming free offer.
He explained that roaming was a dangerous term and the horror stories about people spending huge amounts on holidays has led to distrust in and anger toward telecom companies.
Virgin Media O2 may increase its prices for its mobile tariffs at some point in the future, but it is unclear.
U.K. Prime Minister Boris Johnson said on TwitterMonday, he said that Virgin Media O2 was a great company and that it is pleased to have roaming freedom.
CNBC was told by Sue Davies (head of consumer protection policy for Which?), that the roaming fees which EE, Vodafone, and Three have introduced aren’t nearly as severe as those previously charged to Brits. But, she indicated that some frequent travelers may consider changing to another provider after their contract ends.
Davies stated that the U.K. should continue to make trade agreements and take advantage of the chance to reduce roaming costs for travelers around the globe. The U.K. should work with the EU to reach a settlement on roaming fees to prevent companies from reducing the roaming benefits that customers are used to, and ensure people don’t face the same high roaming costs they used to pay.
Which three are most likely to be affected?
Mann stated that Three could suffer the most from this move. Mann said that Three was among the first companies to end roaming. It has aggressively promoted Go Roam, as it sought to be different by meeting customer needs. This effort could be undone if the company goes ahead with its May plans to reinstate roaming.
CNBC spoke with Francisco Jeronimo (associate VP of Devices at IDC), who said that it is difficult to estimate how many customers will abandon EE, Vodafone, and Three.
He said, “It will certainly have an effect and attract many customers switching, especially those who regularly travel to EU countries.”
“However, for those who only visit once or twice a year on holiday for a week, the additional cost of £2 ($2.7) a day to use their phones abroad to avoid a bill shock, may not be enough for them to switch.”
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