Vodafone to cut prices?

[BGonaSTICK]

Mobile mammoth, Vodafone, is this week expected to cut its prices with the introduction of a new contract tariff.

According to reports, the new tariff has been tried out in some of its retail outlets. Big spenders with Vodafone are expected to be in line for savings of upto 40 per cent.

While Vodafone remains quiet on details, speculation centers around the firm's ongoing battle with churn, an industry reality made all the more painful for Vodafone with the success of T-Mobile's Flext tariff which has lured more than 800,000 new customers in six months. Flext talks to its customers in terms of pounds spent each month instead of fixed numbers for calls and texts allowing customers to spend their money on whatever mix of minutes, texts, voicemail and picture messaging they want.

According to reports, Vodafone is expected to offer a similar, flexible tariff to win back some of the custom it has lost to T-Mobile, Orange and O2.

Last week, Vodafone agreed the sale of its 25 per cent stake in Proximus of Belgium for £1.4bn ($2.64bn).

Vodafone was not available for immediate comment.