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Europe Gives Green Light to Cheaper Mobile Broadband Roaming

Posted: 22nd Apr, 2009 By: MarkJ
The European Parliament has officially voted in favour of last month’s proposals to slash the cost of Mobile Broadband data roaming charges in Europe by July 2009 ('EU Slashes mobile broadband and Data Roaming Charges') and make it more difficult for customers to be hit by BILL SHOCKS.

Other data roaming services (such as sending emails and pictures or web-browsing from mobile phones or laptops) will be regulated at wholesale level – i.e. there will be a price cap for the rates the host operator charges a roaming customer’s home operator, calculated on a kilobyte basis:

from 1 July 2009: a maximum of €1.00 per megabyte (excluding VAT);
from 1 July 2010: a maximum of €0.80 per megabyte (excluding VAT);
from 1 July 2011: a maximum of €0.50 per megabyte (excluding VAT).

To prevent "bill shocks", roaming customers would be able to opt free of charge for a maximum financial limit from 1 March 2010, stipulates the compromise. One of these financial limits should be set at €50 (excluding VAT) or the corresponding data volume, agreed MEPs and the Presidency. This limit would automatically apply to all customers who have not made another choice by 1 July 2010, says the compromise text.

The informal agreement says that providers will have to warn their customers when 80% of the agreed limit has been reached. Once the limit is reached, another notification should be sent, indicating the procedure to be followed if the customer wishes to continue data roaming. If the user does not respond the provider should cease all data roaming services.

The compromise does not fix roaming prices at rates set by the EU, but sets ceilings beneath which mobile operators could compete by offering lower prices. The report was adopted with 646 votes in favour, 22 against and 9 abstentions. The EU will review the new measures again during mid-2011, while the regulation itself will expire by 30th June 2012 unless later extended.
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