Telecompaper

The Italian competition and communications authority issued a report highlighting high prices and limited transparency in the SMS and mobile data markets. The two services had a turnover of EUR 4 billion in 2008, of which around 60 percent came from SMS. While most heavy SMS users pay around EUR 0.01 per message in Italy due to special plans, the majority (62%) of SMS consumers are paying an average price of EUR 0.15. This is more than the recently set price cap for SMS while roaming in the EU of EUR 0.11, suggesting there is room for wholesale and retail prices to come in Italy, the regulators said. Given the expected continued strong growth in the market for SMS, which has been growing at over 40 percent in recent years, the regulators also want to see operators provide more information to customers on the pricing plans available. Consumers also need more information when deciding on mobile internet services, the regulators said, noting the "unfavourable" contract terms currently on the market and confusing information on price, speed and quality of services. In line with the recent roaming regulations, the Italian authorities want consumers to be able to set a spending limit for data services, at which point the operator agrees to stop access. The report also looked at the ringtones and mobile downloads market, where particularly young people are active. Again, more transparency on terms and conditions of the services is needed, the regulators said. In particular, the process for signing up for and ending the service subscription needs to be more clear, so users can easily see the level of their spending.