Vodafone (VOD) Increases Prices 20% in Second-Largest Mobile Market
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Vodafone Group plc (NYSE: VOD) shares are showing some upside early Thursday as reports suggest the communications giant making a significant hike to prices in a key market.
Vodafone is increasing call prices by 20 percent in India -- particularly Delhi and surrounding regions -- to boost profit.
Many of Vodafone's customers are prepay, and will see an increase in billing next month.
The move is being made for Vodafone to compete more wholly with rival Bharti Airtel. Rates are now below one U.S. cent per second for a call.
India is the world's second-largest market for mobile services with 840 million mobile phone accounts at the end of May. Research firm Gartner sees this market expanding to 993 million at the end of 2014.
U.S. rival Sprint reported sour second-quarter earnings numbers before the market open Thursday, sending shares more than 19 percent lower on the day.
Vodafone shares are up 1.5 percent on the session.
Vodafone is increasing call prices by 20 percent in India -- particularly Delhi and surrounding regions -- to boost profit.
Many of Vodafone's customers are prepay, and will see an increase in billing next month.
The move is being made for Vodafone to compete more wholly with rival Bharti Airtel. Rates are now below one U.S. cent per second for a call.
India is the world's second-largest market for mobile services with 840 million mobile phone accounts at the end of May. Research firm Gartner sees this market expanding to 993 million at the end of 2014.
U.S. rival Sprint reported sour second-quarter earnings numbers before the market open Thursday, sending shares more than 19 percent lower on the day.
Vodafone shares are up 1.5 percent on the session.
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