Brussels, 14/07/2006 (Agence Europe) - The draft roaming regulation adopted by the European Commission on Wednesday (see EUROPE 9231) has been welcomed by consumers but slammed by mobile phone operating companies.
BEUC: The European Consumers' Organisation is delighted that the Commission's plan would not be limited to wholesale regulation because: 'It would be naïve to hope that the very same operators would suddenly be converted and voluntarily forego a part of their exorbitant roaming profits to the benefit of consumers… We also welcome the provisions on price transparency. Currently consumers are unaware of the charges they have to pay until they receive their bill. Information provided before the bill arrives is inadequate. Initiatives claiming to solve this problem by setting up websites with prices are not helping, particularly when quoted prices are 'for illustrative purposes' only.' Jim Murray, BEUC Director, said: “Overall, the proposed regulation is a good first step in addressing consumer concerns in mobile communications markets. But we will remain vigilant. We hope that operators will not try to find other markets where they can 'prey' on consumers.”
ETNO: The European Telecommunication Network Operators' Association has expressed 'strong concerns about the impact on the economy and consumers of the EU roaming regulation' which 'does not address the concerns expressed by a wide range of stakeholders, including industry and regulators.' 'Such an intrusive and heavy regulation… is in contradiction with the basic principles of the EU regulatory framework for e-communications services which calls for deregulation once markets are found to be competitive.' 'This approach would undermine the capacity of the sector not only to innovate but also to continue providing basic services to the consumer at an affordable price,' said Michael Bartholomew, ETNO Director.
GSMA: The GSM Association says 'the Commission's proposal to cap wholesale rates has serious flaws. The level of the wholesale price cap envisaged by the Commission will penalise mobile operators with relatively high costs and could lead to some operators making a loss on the provision of this service. Some mobile operators incur higher costs than others for a variety of reasons, for example, because they serve a sparsely populated or mountainous region.' The GSMA says the roaming regulation is 'unnecessary as competition is already delivering substantial reductions in the prices of roaming services' and 'Europe's mobile operators have also made it easier for consumers to find the best prices for roaming services… by launching a website to allow users to quickly compare roaming tariffs'. The website launched on 10 July is http: //http://www.roaming.gsmeurope.org.
European Parliament: Most MEPs are happy with the European Commission's plans. The President of the ALDE Group, Graham Watson, says 'the text does not go far enough to protect consumers' interests,' and regrets the extra 6 months given by the Commission to the industry 'to cash in'. 'Not only should roaming charges be corrected as soon as possible, but prices should be fair; and to that end there should be no extra charges for receiving phone calls while abroad.' German Green Heide Rühle also welcomes the moves as scrapping the huge abuse of exorbitant roaming charges, but regrets that the European Commission did not stick with its first draft (which took a tougher line with regard to mobile phone companies). UK Liberal Democrat Sharon Bowles said: 'This regulation will ensure that operators cannot charge unjustifiably high prices compared to those nationally. It is a myth that the cost of processing this is more, and it is outrageous that mobile operators have got away with this for so long'. British Conservative Malcolm Harbour said the new proposal was simpler and more pragmatic: 'It will give scope for operators to compete strongly, and give consumers real benefits quickly.' Another British Conservative, Syed Kamall, questioned, however, whether the Commission needed to intervene as the market 'is clearly responding to consumer needs in finding an innovative solution to roaming fees'. He added: 'The market is doing what it does best - responding to the needs to consumers. New technologies are being developed that will make roaming fees obsolete over the next few years,' (like Skype on the internet). Angelika Niebler (EPP-ED, Germany) said the Commission was on the right track. She welcomed the 'appropriate' roaming regulation which for the first time