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19/10/2006
O2 abandon 'roaming' charge
Mobile phone operator O2 is abandoning charges for incoming calls while abroad.
The move will initially only apply in Spain, but will extend across the rest of Europe some time next year.
O2's customers wanting to take advantage of the offer must pay £5 a month.
The cost for 'roaming' or making calls abroad has provided a comfortable revenue stream for mobile phone companies. It is believed to be between 10 per cent and 15 per cent of their profits.
The move comes as the European Union continues to pressurise mobile phone companies to cut 'roaming' costs.
Chairman and Chief Executive of O2 Peter Erskine said: "The high roamer proposition was rated as the most popular concept when tested on customers, with many indicating that they are currently left their phones switched off when travelling in order to avoid the cost of receiving a call.
"By starting to scrap the charge levied by all operators in the past for receiving calls when abroad, we hope to begin removing that barrier."
O2, which was acquired by Telefonica, said it would also cut its charges for outgoing calls to 25 pence a minute.
(CD)
The move will initially only apply in Spain, but will extend across the rest of Europe some time next year.
O2's customers wanting to take advantage of the offer must pay £5 a month.
The cost for 'roaming' or making calls abroad has provided a comfortable revenue stream for mobile phone companies. It is believed to be between 10 per cent and 15 per cent of their profits.
The move comes as the European Union continues to pressurise mobile phone companies to cut 'roaming' costs.
Chairman and Chief Executive of O2 Peter Erskine said: "The high roamer proposition was rated as the most popular concept when tested on customers, with many indicating that they are currently left their phones switched off when travelling in order to avoid the cost of receiving a call.
"By starting to scrap the charge levied by all operators in the past for receiving calls when abroad, we hope to begin removing that barrier."
O2, which was acquired by Telefonica, said it would also cut its charges for outgoing calls to 25 pence a minute.
(CD)
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