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Highlights
- The mobile operators in the UK will start charging roaming fees from customers for using their network in European countries from this year.
- Overall, mobile usage has increased multifold in the UK and European countries after the Covid-19 pandemic amid remote working scenarios.
The mobile operators in the UK will start taking roaming charges from customers for using their network in European countries from this year. The mobile operators are allowed to reintroduce roaming charges following the Brexit trade deal in December 2020. Before the deal, the UK-based phone user could call and text in the European Union at normal tariff rates without paying any extra charges.
Many mobile operators are planning to resume roaming services, but the exact date of reintroduction is not yet declared by any operators. Vodafone Plc has delayed plans to bring roaming charges by at least three weeks as it doesn’t have the necessary system ready. Another operator Three Network plans to bring in roaming charges from May 2022.
However, despite fierce competition between network operators to capture market share and customers. Some companies like Virgin Media O2 has announced that it will not reintroduce roaming charges for their mobile phone users. As per the company, it is having a consumer-first approach and expects more people to travel to European countries in 2022 as per the survey conducted by the company.
Overall, mobile service usage has increased multifold in the UK and European countries during the Covid-19 pandemic and amid remote working scenarios, which has positively impacted the revenue and profitability of service providers.
© 2022 Kalkine Media®
Let us explore the two prominent telecom players listed on the FTSE and see how they have been faring:
Vodafone Group Plc (LON: VOD)
FTSE100 listed company provides telecom services in the UK and many other countries. It offers customers voice and broadband services and also provides other value-added services.
During the first half of FY22, the group’s revenue increased by 5% to €22.5 billion, driven by growth in service-related revenue in Europe and African countries and favorable foreign exchange movements. The adjusted EBITDAaL for the company rose by 6.5% to €7.6 billion.
Following the good performance in the first half, the company declared an interim dividend of 4.50 eurocents for its shareholders and has updated its guidance for the full year. As per the new guidance, adjusted EBITDAaL might increase by 4.5-5.9% to €15.2-15.4 billion, while adjusted free cashflow to be at least €5.3 billion.
Vodafone Group Plc currently trades at GBX 116.94, up by 2.04% on 10 January 2022 at 10:45 am GMT+1, with a market cap of £31,132 million.
BT Group Plc (LON: BT. A)
The company provides communication services in the UK and many other countries. It also sells 4 G-enabled devices to consumers through its business segment and offers business communication services to other companies.
It serves clients from nearly 180 countries. Altice UK, a telecom group run by French billionaire Patrick Drahi has recently raised its stake in BT Group. Altice UK has increased its ownership to 18% from 12.1% amid speculation of a potential takeover of BT Group by Patrick Drahi firm. The initial 12.1% stake in the company was bought in June 2021 for £2.2 billion.
BT Group Plc currently trades at GBX 176.30, up by 0.14% on 10 January 2022 at 10:45 am GMT+1, with a market cap of £17,463 million.
