Vodafone drops broadband line rental charges

Vodafone has announced plans to remove line rental charges for new and upgrading fibre optic home broadband customers in the UK.

The operator said that as part of a “new, transparent and easy to understand” home broadband pricing structure, customers will still receive a home phone service, but will not have to pay for the line rental.

“Giving our customers the opportunity to break free from hidden line rental charges is our way of letting our customers know that we are listening and that we are serious about providing them with the Unlimited Home Broadband experience that they deserve,” said Vodafone UK commercial director, Glafkos Persianis.

Vodafone, which started offering fibre optic home broadband in the UK last year, will now offer new customers Vodafone Unlimited Fibre 38 Mbps for £25 (€30) per month and Vodafone Unlimited Fibre 76Mbps for £28 per month.

CCS Insight analyst, Paolo Pescatore, described Vodafone’s decision as a “bold move” that will “help raise awareness of its fibre broadband offerings in a crowded market”.

“It represents a great opportunity for Vodafone to steal a march on its rivals, more so given it is a relatively new entrant and faces significant headwinds in the fixed line broadband market,” said Pescatore.

However, he added that Vodafone’s lack of content “still represents a huge headache for the company,” as its rivals are bundling entertainment, movies and sports with their broadband deals.

“We are moving into a key period when all multiplay providers are trying to entice subscribers with attractive promotions ahead of the new Premier League season. We are expecting a busy second half of the year with Sky’s entry into mobile, Vodafone’s debut in TV and Virgin Media’s new set-top box.”