July 2008

Important Notice – Retirement of Mobile Salary Saver product

Following a recent comprehensive review of its product portfolio Vodafone has made the reluctant decision not to continue to offer Mobile Salary Saver. Vodafone has offered the Mobile Salary Saver product since 2006. It is a benefit scheme which allows employees to pay for their mobile phone from their gross salary. Employees can save up to 41% on Vodafone Retail and Online prices and employers up to 12.8% in National Insurance contributions. The product was originally launched in 2003 by Flexphone. Vodafone UK acquired Flexphone Limited in 2007.

Vodafone continually reviews its product and service portfolio to ensure that it is meeting customer needs as well as delivering best practice commercial efficiency. With regard to Mobile Salary Saver Vodafone has observed a change in market dynamics. Whilst the desire for employers to offer a rich benefits package to their employees continues, the uptake of these services has been limited and below expectations. This is due to a number of factors, but is predominantly down to the extremely competitive mobile phone offers in the high street.

In its place Vodafone will offer to existing clients an alternative employee discount scheme, known as the Vodafone Exclusive Staff Offer (ESO). The basis of the offer is a £75 discount on all Vodafone plans offered on www.vodafone.co.uk to be fulfilled via Vodafone’s Telesales channel (08080 044435).

Further details on ESO can be obtained from Vodafone account managers.

Vodafone will continue to honour all existing accounts with Flexphone Limited already opened inside the current tax year (FY 08/09) until the expiration of the employee’s mobile phone contract, at which point we will offer them the opportunity to change to the ESO scheme.

We would like to thank you for your interest in Mobile Salary Saver and wish you well in the future development of your benefits programme.