Brussels, 06/07/2011 (Agence Europe) - The European Commission proposed on 6 July that roaming rules currently in force in the European Union should continue after 1st July 2012 and until mid-2016. The Commission has already intervened twice, firstly in 2007 and then again in 2009, to bring down the retail prices of mobile communications for consumers, forcing operators to observe ceilings. This time, it is proposing a totally new approach, a long-term structural solution addressing the excessively high prices paid by consumers because of lack of competition, said Commissioner Neelie Kroes. This is not about resolving the effects, but getting to the heart of the problem. “This proposal tackles the root cause of the problem - the lack of competition on roaming markets - by giving customers more choice and by giving alternative operators easier access to the roaming market. It would also immediately bring down prices for data roaming, where operators currently enjoy outrageous profit margins”, Kroes said.
According to a report on the current roaming regulation, the cost of roaming calls and text messages (SMS - short message services) has fallen since the rules came into force, without resolving the issue of lack of competition on the market, where retail prices have remained close to the ceilings set. If it is passed by the European Parliament and the Council, the new, directly applicable, regulation would allow consumers, from 1st July 2014 to sign up to cheaper roaming contracts, separate and distinct from their national contracts, without having to change mobile phones, SIM cards or telephone numbers. The proposal would also give mobile operators (including virtual operators, that is, those who do not have their own networks) the right, from 1st July 2012, to use the networks of other operators in other member states at regulated wholesale prices, thereby encouraging more operators to compete on the roaming market. In other words, a virtual mobile operator established in member state “A” would be able to offer cheaper roaming services to consumers in member state “B”, even though it does not provide national mobile services in member state “B”. These two structural measures combined will allow consumers to choose the most competitive roaming offers and so take full benefit of a pan-European telecommunications market, the Commission says.
Until the measures take effect and competition brings down retail prices, the proposal provides for a safety net - a progressive reduction every year until 2014 of current retail price ceilings for voice and SMS services and the introduction of a new cap for retail roaming data services. Between now and 1st July 2014, consumers would pay a maximum of 24 cents per minute to make a call (compared with 35 cents currently) and 50 cents per megabyte of data downloaded or per kilobyte used to surf the net abroad (at present, only wholesale prices are regulated, resulting still in high bills as operators fail to pass on savings in wholesale prices to retail prices).
The proposal aims to meet the objective set in the Digital Agenda for Europe that differences between roaming and national telecoms tariffs should approach zero by 2015. This objective will be met if competition in mobile markets gives consumers a rapid and easy choice of roaming service at, or close to, domestic prices. What is at stake, according to Kroes, is a top to bottom restructuring of the telephony market in Europe: 27 member states and one single digital market. “It will come”, she asserted.
First reaction from European Parliament positive. Herbert Reul (EPP, Germany), chairman of the European Parliament's ITRE committee which will examine the Commission proposal, was pleased, but remained cautious. “I welcome the proposal and, in particular, the emphasis on finding a viable long-term solution to this persistent problem, while cautioning that the Parliament will carefully consider all aspects”, he stated. On behalf of the Greens Group, Philippe Lamberts (Belgium) was pleased that Commissioner Kroes had taken this initiative “which will ensure European consumers are no longer ripped off when using their mobile phones when travelling in Europe”. UK Conservatives Malcolm Harbour and Giles Chichester (ECR) also welcomed the Commission proposal which will “boost competition by allowing customers to sign up for a second provider for cheaper roaming services”. (I.L./transl.rt)