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Looking at why Vodafone costs more than other networks

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Why is it more expensive to join Vodafone directly than some of the smaller providers in the UK? Are you getting a worse deal? Last updated: 15th May 2024.

How Vodafone compare on price

Vodafone’s deals are more expensive than average

Vodafone logo and a network mast

Top-whack SIM plans now push £40See plan prices

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If you’ve compared prices on different networks, you’ll probably have seen that Vodafone tend to be one of the most expensive networks for SIM only deals, when you buy direct and not via third party retailers like Carphone Warehouse.

That goes for their phone contracts as well. Their usage plans (mins, texts, data) are usually the same as their SIM only plans, so you’re paying for an expensive plan on top of an ok price for your phone.

Vodafone only include EU roaming on their most expensive plans, otherwise you have to pay £2 a day to roam in the EU. And international calls, extra data and anything else outside your plan can get expensive fast.

And on top of all that, Vodafone will also raise the cost of your plan every year in line with inflation rates. So why are Vodafone’s plans so expensive and what are they spending all that money on?

Useful link: See Vodafone’s range of SIM only deals

Why Vodafone’s plans are more expensive

They are constantly investing in running a better network

A map of Vodafone's 5G coverage

Their 5G is still expandingTheir 5G guide

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A large reason why Vodafone’s deals are so expensive is that they have to pay to run and expand their network. They offer widespread 4G and 5G signal and are expanding both into more areas.

Vodafone have spent literally billions on their network. It’s a constant process too of investing up front to keep apace with the competition and only seeing the returns come in later.

On the other hand, virtual providers on Vodafone’s network are able to offer cheaper prices as they only pay a bit to use Vodafone’s network rather than incurring the whole cost of running it.

But Vodafone have smallest 5G coverage of the main UK networks, especially compared to Three who offer much cheaper plans. So, if they’re not investing as much in their 5G, what else is keeping their costs high?

Useful link: See Vodafone’s 5G live locations

Vodafone spend a lot on marketing their brand

Women's Rugby team

Vodafone spend lots on sponsorshipsSee all activity

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A good amount of Vodafone’s budget goes towards advertising, with celebrity endorsements such as Emma Raducanu taking up a significant amount of money. This is why they’re so well known.

They’ve also invested a lot into marketing themselves as the ideal network for small businesses and connecting concerts, sporting events and more. It’s all to stay a recognisable, trusted brand.

Vodafone also sponsor Wimbledon and provide the mobile infrastructure for the stadiums while also sponsoring the British and Irish Lions and the Irish national men’s rugby team.

All of that adds up to a massive marketing budget. It means when you come to choosing your next mobile deal, Vodafone are top of your mind.

Useful link: Read more about Vodafone’s sponsorships

Their stores and overheads are an extra cost

Front of a Vodafone store

Running physical stores is expensiveFind a store

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You’ve likely seen a Vodafone store in malls, on the high street or even in some supermarkets. This lets them reach a larger audience of customers than purely selling online like smaller providers.

But this of course incurs a big cost, as Vodafone have to maintain their stores and pay for their employees. These expenses all end up reflected in the price you pay for your mobile deal with them.

People feel safer and more secure signing up to contracts with a real person. And retail store customers are more likely to pay a higher price than online shoppers, because they’re not able to compare so well.

Vodafone also run large customer contact centres, at considerable expense. It means you’ve got someone to help you on the end of a phone if you need it. Many cheaper providers strip real-person service out.

Useful link: Find the nearest Vodafone store near you

They don’t really need to lower their plan prices

Vodafone employees receiving award

Multiple awards, millions of customersSee all deals

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The last reason why Vodafone keep the cost of their plans high is that they can. They’re the third largest UK network in terms of customers, with millions and millions of users. Why would they lower their costs?

Their massive marketing campaign has also made them a go-to brand for many, so they don’t have a shortage of new customers. A lot of their income is based on brand recognition alone.

People tend to be more comfortable joining a main network as they may think they will get an inferior network experience by joining a smaller provider. But as we go into further down this isn’t the case.

Overall, Vodafone’s high prices are due to the cost of running their network, marketing their brand and having few incentives to lower them. So, let’s go over the cheaper providers with access to Vodafone’s network.

Useful link: Our guide to the budget alternatives to joining Vodafone

Cheaper providers on Vodafone

These budget providers get identical signal to Vodafone

Talkmobile logoVOXI logoLebara logoASDA Mobile logo

Full access to Vodafone’s networkRead our guide

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There are a handful of cheaper providers that get full access to Vodafone’s network. Our favourite is Talkmobile, as they offer some of the lowest costs of all UK networks, EU roaming and identical signal/speeds to Vodafone.

VOXI are another excellent choice. They’re actually a sub-brand of Vodafone and offer unlimited social media and video streaming data benefits on their plans. But they’re a bit more expensive than Talkmobile and don’t include roaming.

Lebara are brilliant if you need to call abroad, as they include a different number of international minutes on your plan depending on which one you take. And they tend to offer deals at low prices.

Finally, ASDA Mobile are a good value option, but aren’t as cheap as Talkmobile and don’t offer any big benefits like VOXI or Lebara. But any of these providers are a great alternative to joining Vodafone directly.

Useful link: Read our Talkmobile network review

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