European Commission proposes cheaper roaming prices
By Tom Brewster,
Lower voice and data roaming prices could soon be enjoyed by EU citizens thanks to fresh proposals from the European Commission.
The EC today recommended a call cap of €0.24, €0.10 for the receiving of a call, €0.10 for a sent text message and €0.50 for each MB of data downloaded.
Changes would also allow customers to sign up to a separate, cheaper mobile roaming contract for the time they are abroad, whilst keeping the same phone number.
Mobile operators would be allowed to use other operators’ networks at regulated wholesale prices, which the EC believes will encourage greater competition in the roaming market.
All the changes would be enforced by 1 July 2014 if the proposals were ratified.
“This proposal tackles the root cause of the problem - the lack of competition on roaming markets - by giving customers more choice and by giving alternative operators easier access to the roaming market,” said Neelie Kroes, EC vice president for the Digital Agenda.
“It would also immediately bring down prices for data roaming, where operators currently enjoy outrageous profit margins.”
Vodafone, whilst not willing to openly dispute the proposals, claimed price caps had not benefited competition in the past. The company said it was already offering prices cheaper than the caps.
“If an industry is competitive then it will be beneficial for customers,” a Vodafone spokesperson told IT Pro.
“Roaming price caps have not encouraged competition or driven innovation in the past.”
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Daft regulators
If we want competition, then it would do far more good to force the Telco's to publish details of roaming costs on any material that quotes any pricing at all, so that competition could force the pricing down as far as it naturally can, rather than have a regulator pulling a number out of a hat as a maximum, which is pretty much guaranteed to also be a minimum. Nothing kills competition better that the government setting the standard.
Why is there nobody involved in the process of regulation that understands a thing about how business works.
By Henry_3_Dogg on Friday Jul 8