Vodafone to challenge Orange with pounds 15m advertising campaign
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Industrial Correspondent
Vodafone, the leading mobile telephone operator, is challenging the growing popularity of the rival newcomer Orange with a nationwide campaign that will treble its direct advertising spend to pounds 15m.
The programme will coincide with the introduction of new lower charges from Vodafone, which could spark a fresh round in the mobile price wars, with Cellnet, the other big operator, expected to follow suit.
The campaign emerges as Orange prepares for a stock market flotation which some City analysts say will value the company at about pounds 2bn. Orange, owned by Hutchison Whampoa and British Aerospace, has declined to comfirm plans for the listing but an announcement clarifying the situation is expected next week.
Orange was launched 21 months ago and has only 380,000 subscribers compared with Vodafone's and Cellnet's 2.3 million each. But it is acknowledged to have become a serious player, particularly in the growing consumer marketplace.
A spokesman for Vodafone said: "The market has changed. The focus has moved to the high street and in Orange you have a well-branded product.
"We are seen as establishment and perhaps have been viewed as being mainly for business customers. But in fact over half our base are consumers."
One source said that Orange had had a "run at the market" with substantially lower tarrifs while its network was being built.
The comment implies that Vodafone, which had previously said its higher charges were justified because of its superior coverage, now plans an attack on all fronts.
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