Known as Vodafone at Home, it is a contract for 18 months. The broadband connection is free to its mobile phone contract customers spending more than 25 pounds ($48) per month. The fee includes the line rental, which is normally 10.99 pounds ($21) per month. Rivals such as the Carphone Warehouse Plc and Orange UK already offer similar services.
Vodafone at Home uses BT’s ADSL Max product to provide broadband speeds of up to 8MBps, depending on how far away customers are from their local telephone exchange. In addition, Vodafone at Home will include free landline calls to standard UK landlines for up to one hour per call. It is also offering a 25% discount off landline calls to mobile phones compared to standard BT charges.
Vodafone is bundling Norton Internet Security 2006 for six months, free 24/7 technical support, and a free Netgear Ethernet modem. A wireless router is available at an additional charge.
Vodafone at Home is only available to Vodafone mobile customers, and if customers cancel their mobile phone contract, the monthly fee goes up to 35 pounds ($68) per month. This is a clear indication of Vodafone’s intention to increase customer loyalty, as it faces a highly saturated mobile market in the UK that offers limited growth potential.
Last September, Vodafone decided to rent internet access from BT Wholesale, rather than build its own broadband infrastructure. This was tied to the infrastructure-light approach of chief executive Arun Sarin.
