The National Federation of Retail Newsagents (NFRN) has reacted angrily to the news of what it describes as “yet another cut in margins on Vodafone e-top ups” and is predicting a rapid and terminal decline in the business “unless margins are restored to a realistic level”.
Alan Smith, NFRN National President, said: “This unilateral action by Vodafone will reduce margins to a derisory 1%, which will mean transactions being handled at below cost. It is clear from the reaction of our members that this is something they are simply not prepared to do. From the information we have received, there will be thousands of retailers who will simply cease to offer this customer service and we can see no prospect other than a very rapid decline in what has been a very significant market.
“The widespread availability of e-top up through retailers was a vitally important part of the development of the mobile market and the networks should remember this. Vodafone clearly don’t and are guilty of the worst kind of commercial cynicism. I know from the messages we are receiving from members that they will be making their feelings known by spontaneous protest action.”