The European Commission plans to force mobile carriers to reduce prices to users travelling abroad
The era of extortionate charges for using a mobile phone aboard may soon be over, as the European Commission (EC) plans to introduce impose price caps on mobile operators across Europe. This move could save a lot of cash for frequent travellers and their employers.
The EC has long warned it would regulate roaming charges if mobile operators did not reduce prices. However, an EC web site set up to compare roaming costs shows charges have remained stable or even increased despite this threat.
“It is high time that the EU’s internal market delivered substantially lower communication charges for consumers and business people traveling abroad,” said Information Society and Media commissioner Viviane Reding. “I therefore propose that an EU regulation be used to eliminate all unjustified roaming charges.”
The proposals have already gained support from the UK telecoms watchdog, Ofcom.
To support its argument, the EC has updated its roaming charges web site, which demonstrates there are still massive variations in pricing. While a Finnish user calling home from Sweden can pay as little as E0.20 for a four-minute call, for example, a Maltese user calling home from Latvia can be charged E13.05.
O2 was singled out for criticism for actually raising its pricing during the EC’s crackdown period, from E 3.45 to E4.92 for a four-minute call home from across the EU. The web site also highlights that very few mobile users are benefiting from lower tariffs in response to the EC’s requests for fairer roaming charges.
The failure of operators to cut prices is spurring the EC to develop proposals to regulate and to reduce mobile charges for users abroad. It suggests that operators from different countries charge each other a fairer rate for mobile calls, and pass the resulting savings on to subscribers; they should eliminate charges for receiving calls when aboard; and they should introduce a home-pricing principle to let mobile users pay local tariffs for local calls, whether in their own country or abroad.
The EC will now begin the second phase of its consultation on roaming charges, which will run throughout April. It expects to adopt put forward proposals in June, which would then require approval from the European Parliament and the Council of Ministers.
The plans to introduce regulations gives a strong message to mobile operators that the issue is being taken seriously by the EC, according to Stefano Nicoletti, senior analyst at research firm Ovum. However, he argued that the EC should intervene with a light touch. “If regulations are going to be introduced, we believe they should be used as a temporary measure and withdrawn once the market shows more competitive behaviour,” Nicoletti said. “In the end, the best way to serve EU citizens is to make sure that market forces work effectively, rather then imposing intrusive regulation."
The era of extortionate charges for using a mobile phone aboard may soon be over, as the European Commission (EC) plans to introduce impose price caps on mobile operators across Europe. This move could save a lot of cash for frequent travellers and their employers.
The EC has long warned it would regulate roaming charges if mobile operators did not reduce prices. However, an EC web site set up to compare roaming costs shows charges have remained stable or even increased despite this threat.
“It is high time that the EU’s internal market delivered substantially lower communication charges for consumers and business people traveling abroad,” said Information Society and Media commissioner Viviane Reding. “I therefore propose that an EU regulation be used to eliminate all unjustified roaming charges.”
The proposals have already gained support from the UK telecoms watchdog, Ofcom.
To support its argument, the EC has updated its roaming charges web site, which demonstrates there are still massive variations in pricing. While a Finnish user calling home from Sweden can pay as little as E0.20 for a four-minute call, for example, a Maltese user calling home from Latvia can be charged E13.05.
O2 was singled out for criticism for actually raising its pricing during the EC’s crackdown period, from E 3.45 to E4.92 for a four-minute call home from across the EU. The web site also highlights that very few mobile users are benefiting from lower tariffs in response to the EC’s requests for fairer roaming charges.
The failure of operators to cut prices is spurring the EC to develop proposals to regulate and to reduce mobile charges for users abroad. It suggests that operators from different countries charge each other a fairer rate for mobile calls, and pass the resulting savings on to subscribers; they should eliminate charges for receiving calls when aboard; and they should introduce a home-pricing principle to let mobile users pay local tariffs for local calls, whether in their own country or abroad.
The EC will now begin the second phase of its consultation on roaming charges, which will run throughout April. It expects to adopt put forward proposals in June, which would then require approval from the European Parliament and the Council of Ministers.
The plans to introduce regulations gives a strong message to mobile operators that the issue is being taken seriously by the EC, according to Stefano Nicoletti, senior analyst at research firm Ovum. However, he argued that the EC should intervene with a light touch. “If regulations are going to be introduced, we believe they should be used as a temporary measure and withdrawn once the market shows more competitive behaviour,” Nicoletti said. “In the end, the best way to serve EU citizens is to make sure that market forces work effectively, rather then imposing intrusive regulation."
Share this page
Email this page
Back to Top
Home
Edit Post
0 comments: