EC wants structural fix for roaming market, more price cuts

Nieuws Mobiel Europa 6 JUL 2011
EC wants structural fix for roaming market, more price cuts

The European Commission has proposed increased regulation of mobile roaming in the EU, including more price cuts on voice and SMS, new retail price caps on data services and requirements for operators to open up their networks for competitors to offer alternative roaming services. The EC said its latest report on the roaming regulations found that prices remain "stubbornly close" to the existing retail price caps. In order to bring roaming prices closer to domestic rates and improve competition, the EC proposed a structural remedy requiring mobile operators to offer wholesale access at regulated prices to operators and MVNOs from other member states. This would lead to new offers for roaming services and allow consumers to choose an alternative provider for roaming, irrespective of their national provider. Under the EC proposal, each time the customer crossed a border, they would automatically switch to their chosen roaming provider, without any further action on their part, while keeping the same number and Sim. The EC would like to see this system in place by July 2014.

 

In the meantime it proposed a further drop in roaming prices. The retail cap on the price of making a call while roaming in the EU would drop from the current EUR 0.35 per minute to EUR 0.32 in July 2012, EUR 0.28 the following year and EUR 0.24 in 2014. Receiving a call would fall from EUR 0.11 now to EUR 0.10 in July 2013, and SMS would drop to EUR 0.10 in 2012, from EUR 0.11 per message currently. New retail price caps would be introduced for data services, at EUR 0.90 per MB from July 2012, EUR 0.70 from mid-2013 and EUR 0.50 from July 2014. The existing wholesale price cap on data would fall from EUR 0.50 per MB now to EUR 0.30 in July 2012, EUR 0.20 in July 2013 and EUR 0.10 in July 2014. For wholesale voice, the EC proposed caps of EUR 0.14 per minute in July 2012, EUR 0.10 in 2013 and EUR 0.06 in 2014, while wholesale SMS would drop to EUR 0.03 in 2012 and EUR 0.02 in 2014. The retail price caps would be in force until mid-2016, while wholesale prices would be valid until 2022, unless competition significantly improves before then. The proposals remain subject to approval by the parliament and council.  

Categories:

Mobiel

Regions:

Europa

Tags:

Voice services, Data services, Network Access, Messaging, Regulations, Wireless, Internet Access, Wholesale, Pricing, Legislation - Lawsuits

Related Articles

EUROPA 28 FEB 2012

EU parliament committee approves steeper roaming cuts

The European Parliament may vote in April on much steeper cuts in roaming prices than those proposed by the European Commission. The Industry, Research and Energy committee approved the proposal to bring the maximum retail price for a roaming call in the EU down to EUR 0.15 per minute by mid-2014, versus the current price of EUR 0.35 per minute and the EC proposal for EUR 0.24 per minute in 2014. The price of an incoming call would fall in three steps, from EUR 0.11 per minute now to EUR 0.05 in July 2014,

EUROPA 19 DEC 2011

Telecom user groups call for deeper cuts in roaming prices

The International Telecommunications User Group and the Europeans for Fair Roaming lobby group have called for deeper cuts in EU roaming prices. The European Commission's proposed changes to roaming regulations after the current rules expire next year are currently under discussion in the EU Council and European Parliament. The lobby groups said in a statement that the price caps proposed "are still much too high", making it difficult for smaller operators to enter the market and compete. They called on the

EUROPA 31 AUG 2011

Berec questions EC roaming proposal

European telecoms regulator Berec has questioned the European Commission's proposal to allow consumers to choose their own roaming provider. In a presentation to the European Parliament on the proposed changes to roaming regulations, Berec said it agrees with the commission that wholesale and retail price regulation is still needed to ensure reasonable roaming prices, and a more structural solution needs to be found for the long term. However, Berec said the so-called dual-IMSI structural solution proposed

EUROPA 7 JUL 2011

EU starts new round of back and forth claims over roaming

The European Commission thinks roaming is too expensive, while the operators disagree. There's something to be said for both standpoints. Data roaming prices are falling, but there is still a clear difference with domestic rates. The European Commission wants regulatory measures, the operators say these aren't needed and aren't legal. The preliminary evaluation of the last roaming regulations was published a year ago, and the EC has been threatening new measures ever since. It wants regulations at both the

DUITSLAND 7 JUL 2011

German operators call retail data roaming rules superfluous

All German mobile operators (Telekom Deutschland, Vodafone, O2, E-Plus) call the decision of European Commissioner Neelie Kroes to regulate retail tariffs for mobile data roaming, lowering the retail price in 2 steps to EUR 0.50 per MB in 2014, superfluous, according to teltarif.de after contacting all operators and the German association of alternative telecom providers and operators VATM. KPN's German subsidiary E-Plus does support regulatory measures as currently no international operator is using the ro

EUROPA 6 JUL 2011

Operators question need for EU roaming regulation

T-Mobile is not convinced further European regulation is needed in the roaming market. A spokesman for the operator told Telecompaper that the market is competitive enough to resolve any issues on its own. The operator also pointed to the recent GSMA survey of European roaming prices, showing the average of each operator's best data roaming tariffs dropped almost 20 percent in the last three months. Vodafone had a more neutral reaction to the European Commission's announcement of further roaming price regul

EUROPA 6 JUL 2011

Europese Commissie wil aparte Europese markt voor roaming

De Europese Commissie stelt vergaande maatregelen voor om de tarieven van roaming in de Europese Unie omlaag te krijgen. Vanaf 1 juli 2014 moet het voor de consument mogelijk worden om in het buitenland een andere mobiele operator te kiezen. Alle operators krijgen de verplichting om 'roaming-MVNO's op hun netwerk toe te laten tegen(wholesale) gereguleerde tarieven. De wholesale-tariefplafonds voor bellen en sms dalen na 2014 niet verder, maar blijven tot minimaal 2018 en uiterlijk 2022 gehandhaafd. Neelie K

EUROPA 4 JUL 2011

EU to extend roaming price caps to data - report

The European Commission is set to unveil further cuts in roaming prices this week, the Financial Times reports. The current roaming regulations expire next year, and the EU is expected to adopt new rules extending the price caps to 2016. The new regulations will also add price caps for retail data roaming services, in addition to the current ceilings on voice and SMS prices. Data will be capped at EUR 0.90 per MB from July 2012 and drop to EUR 0.50 per MB by 2014, according to the report. Mobile customers w

EUROPA 30 JUN 2011

EU roaming prices to drop again from 1 July

Roaming prices will drop again from 1 July in the European Union. The default Eurotariff will be EUR 0.35 per minute for making calls when roaming in the EU, down from EUR 0.39 previously, and EUR 0.11 per minute for receiving calls, down from EUR 0.15. Sending a SMS will continue to cost EUR 0.11 per message, while receiving messages is free. This is the last in a series of regulated price cuts under the current EU Roaming Regulation, which expires at the end of June 2012. The European Commission is expect

EUROPA 30 JUN 2011

GSMA charts drop in EU data roaming prices

The GSMA released the first issue of its Data Roaming Price Basket Index, as the industry group steps up lobbying over proposed EU regulation of data roaming prices. The first index by AT Kearney looked at data roaming prices across 101 EU mobile operator websites in the period 6-10 June 2011, and compared the prices with a similar survey in April. The results show the average of each operator's best data roaming tariffs dropped almost 20 percent in the three months. For 5, 10 and 50MB usage baskets, postpa

EUROPA 13 APR 2011

Data roaming fees to drop to domestic levels by 2015

Telefonica believes data-roaming prices within Europe will drop as low as domestic mobile data prices by 2015, ZDNet reports, citing Robert Mourik, director of regulatory policy at Telefonica. According to Mourik, digital agenda commissioner Neelie Kroes's goal would be achieved without regulatory intervention in the EU data-roaming marker. This would happen "purely on the basis of demand", the Tlefonica representative added. In May, the EC is expected to propose new legislation to reduce data-roaming price

EUROPA 15 FEB 2011

EU's Kroes warns roaming market still uncompetitive

Eu digital society commisioner Neelis Kroes has warned industry players that further regulation of roaming tariffs in the EU may be on the way. While the European Commission's consultation on the progress in regulating roaming so far just closed to submissions on 11 February, Kroes shared some insights from the responses in a speech at the Mobile World Congress in Barcelona. She said the consensus in responses was that the market remains uncompetitive, and most stakeholders, especially consumer groups and n

EUROPA 9 DEC 2010

EC consultation will lead to lower roaming rates - Kroes

The European Commission's consultation on roaming rates will help determine if more legislation is needed to lower rates; it was not set up to look at how the rules should be implemented, EC vice president Commissioner Neelie Kroes said during a GSMA meeting in Brussels. The EC wants to examine all its options. Kroes expressed the hope that operators will come up with their own solutions for lowering roaming charges within the EU. "I want to continuing keeping an open mind as regard to the lack of competiti

EUROPA 6 DEC 2010

EU wholesale roaming cuts not fully passed on to end users

The European Commission has submitted a report to the European Council's telecommunications ministers that states that consumers have not benefited fully from regulated reductions in wholesale data roaming prices. The report found that although current rules have reduced voice roaming prices by 50 percent and SMS by 60 percent, the European internal market for roaming services is still not truly competitive. Consumers have not benefited fully from regulated reductions in wholesale data roaming prices. EC v

EUROPA 28 SEP 2010

EC's Kroes calls for roaming rates linked to national prices

Mobile calls and mobile internet should have the same maximum rates across the EU and high roaming charges should be relegated to the past, telecoms commissioner Neelie Kroes said during the ICT 2010 conference in Brussels. The previous European Commission already set maximum roaming charges for mobile phone calls and began moves to do the same for mobile internet roaming.

Just In

19 DEC 16:42

SLT-Mobitel launches 5G network in Sri Lanka

19 DEC 16:19

Dialog Axiata launches 5G network, connects 1.5 million subscribers

19 DEC 15:56

UK govt to ban AI-enabled nudification apps to protect women, girls

19 DEC 15:42

3 UK launches last-minute Christmas sale

Commentary

13:56

Video market set for slower growth ahead

11:38

Netflix buys Warner Bros to deepen content catalogue

11:11

KPN's mixed performance in Q3 raises questions for strategy day

15:26

Stock markets breaking records but what happened to Odido's IPO plans?

Background

01:04

The week in telecom: Wi-Fi bolt-ons take off to boost broadband growth, video market works on consolidation

01:39

The week in telecom: Netflix wins bidding for Warner Bros, Apple poaches new execs, Samsung debuts trifold

13:51

Proximus vs. Telenet: Proximus performs better in Q3 while Telenet uses up cash

14:16

Proximus Domestic still struggling with low margins

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.