| EU Mobile Roaming Rates: Developments Roundup
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| Written by HiVoltage |
Sunday, 23 July 2006
Back in May, we reported
that the European Regulators Group (ERG) sent in their comments about
the issue about mobile roaming fees within the EU. Previously, the
European Commission was proposing a price cap on the retail price for
roaming, but the ERG suggested that would be too uncompetitive and
instead suggested a price cap on the wholesale prices (the price
operators pay each other). Then, if within a number of months the
operators don't pass those price reductions to their customers, a price
cap on retail prices (the price paid by the customer) would be
implemented as well.
A little more than two months have passed,
and last week, on the 12th of July to be exact, the European Commission
presented a new proposal which was almost identical to what the ERG
suggested. This document does not provide a lot of hard numbers. To
highlight the most important aspects, it proposes that the wholesale
price is regulated, and it is to be calculated accoring to the costs
that the operators incur to provide the service. The other aspect is
that the retail price may only be up to 30% higher than the wholesale
price.
When we heared about this document, we had mixed opinions. The
proposals sound good, although a few hard figures would have helped.
So, we waited for the operators' reaction, and we got it. On last
Thursday's Business Weekly, there's an interesting article
where the local operators submitted their views. Go Mobile's
representative sounded quite submissive to the new proposals, and said
that Go Mobile will be acting accordingly. Vodafone, however, had
different words to say. To quote the exact words:
"Vodafone is of the view that the initiative is illegal as well as
unnecessary. The EU Treaty protects companies and customers from
arbitrary and unjustified regulation. The Commission has no legal basis
for what it proposes."
Vodafone went on by saying that these proposals do not take into
consideration the customer's interest, and also had quite harsh words
on the fact that retail prices will be capped as well. How price
capping would be a detriment from price capping, we have yet to
understand though.
Overall, this argument seems to be heating up. The European Commission
is pushing for these proposals to be implemented next year, but of
course, they need to pass through some stages before they become
enforced, namely the European Parliament and the local governments. We
will keep you updated as this story develops. Your comments on this one
will be highly appreciated.
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| Last Updated ( Sunday, 23 July 2006 ) |
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