
The European Commission has switched from the stick to the carrot in its efforts to encourage mobile operators to bring roaming prices down to the same level as national rates. Under its proposed telecom legislation, operators that allow customers to 'roam like at home' would be exempt from the existing retail price caps and the requirement taking effect next year to allow customers to choose alternative roaming providers.
To receive the exemption, they have two options. In the first case, they must allow customers to roam at the same rates they pay at home in at least 17 EU countries and countries covering 70 percent of the EU's population. In that case they need to offer at least one such package from July 2014, and progressively extend the offer until 'roam like at home' is included in all their retail packages by July 2016.
As an alternative, providers can offer slightly less coverage in the first year (at least 10 EU countries covering 30% of the population) and progressively rise to the target of 17 EU countries with 70 percent of the population. However, in that case they need to offer 'roam like at home' to all their customers (not just to certain packages), right from the start.
After July 2016, such deals should in principle include 'roam like at home' for all EU member states. However, operators can still benefit from the above provisions, if they cover at least 17 countries and 70 percent of the population and can show they sought in good faith to reach 100 percent coverage, and if they offer the deal to all their customers. Operators can implement the lower roaming rates abroad by using their own networks in other countries or agreeing network access with other operators.
Regardless of whether they opt for the above scheme, the existing price caps remain in effect. Under the proposal, these would be extended to end charges for receiving calls while roaming from July 2014.