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Europe Kicks Off New Mobile Broadband Data and Voice Roaming Cost Consultation

Posted: 09th Dec, 2010 By: MarkJ
europe map digital agendaThe European Commission (EC) has kicked off a new consultation into mobile voice, sms and data ( Mobile Broadband ) roaming charges within the 27 member states of Europe (EU27). The goal of this process is to stop "unjustifiably high margins" on related services and reduce the difference between roaming and national tariffs to almost zero by 2015.

Neelie Kroes, Vice-President of the EC for the Digital Agenda, said:

"Huge differences between domestic and roaming charges have no place in a true EU Single Market. We need to address the source of current problems, namely a lack of competition, and to find a durable solution. But we are keeping an open mind on exactly what solution would work."

Meeting such goals could be difficult. There are significant differences between Europe's many mobile markets, both technologically and economically. Operators are also under pressure from a capacity crunch on their networks, which has seen data use come perilously close to outstripping revenue.

Mobile providers have only just finished adapting to the new July 2010 rules, which placed a wholesale cap per MegaByte (MB) uploaded or downloaded at the level of €0.80 (£0.67p). Furthermore, travellers' data-roaming bills are now automatically limited to €50 per month excluding VAT (unless they have chosen another limit); warning messages must be sent when this limit is near (80%) to being reached.

Neelie Kroes added:

"You know that I am not a fan of regulation for the sake of it. I always favour remedies that allow or even encourage markets to function properly. If operators were actually competing with each other seriously then we could consider ending regulatory intervention. But I am afraid that that is not what we are seeing right now.

I do not see €0.05 SMS-prices, for example. I see only a cluster around the regulated cap of €0.11. And even though the wholesale price for data fell in 2010, significantly below the maximum, we have not seen equivalent reductions in the retail price. Despite recent developments, I still see an average retail price that makes consumers’ eyes water. Really.

Less than 5 cents for downloading a MB of data at home can turn into €2.60 per MB when they cross an invisible, and mostly artificial, border! Don’t tell me that is all funding new investment in better networks; I can’t defend that to citizens. I can't defend it for the simple reason that it isn’t true.

Frankly this is a nightmare for business people, for tourists, for young people in particular. This holds back the roaming market. Tens of millions are simply not confident in using their mobiles, and even less their 3G smart-phones, across the Single Market. That is an embarrassing situation for all of us in this room. We have a duty to address it."

At present a Mobile Broadband user on Three (3) in the UK would pay just £15.99 per month (SIM only) for 5 GigaByte's (GB) of monthly usage on a 1 month contract term. The UK is in fact one of the cheapest markets for mobile data in Europe, with most being significantly more expensive.

It's incredibly hard to see how the EU could bring the continent wide pricing of mobile data in line with the UK, especially given all of the concern over operator capacity and revenue shortfalls. Speaking as consumers though, we'd still welcome anything that makes it cheaper to call or surf when abroad.

The consultation runs until 11th February 2011 and will provide a basis for a review of the EU's current Roaming Regulation, which the EC has to carry out before the end of June 2011.
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