EU to end mobile roaming charges next year
#1
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EU to end mobile roaming charges next year
http://www.telegraph.co.uk/finance/n...next-year.html
This will likely be a major benefit for travellers who frequently visit multiple countries in Europe. It should also reduce or eliminate the need to have multiple local SIM cards (and multiple local phone numbers!)
Roaming fees for voice calls, texts and internet access will effectively be completely scrapped under the proposals, which are part of a broader effort to create a single European telecoms market.
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EU may end all mobile roaming fees
EU to end mobile roaming charges next year - Telegraph
OK this part is very encouraging to hear for consumers:
But then this goal of consolidating carriers makes you worry whether prices will decline:
Of course prices charged by operators across the EU vary greatly. It would be great if carriers like TIM and Wind, which offer great prices for data and good networks, were among the survivors of this carrier consolidation.
But if the operators which emerge out of this consolidation are Vodaphone, France Telecom, Deutsche Telekom and other similarly higher-priced carriers, then what?
I used a 25-Euro 10 GB package from TIM during a 2-week trip in Italy last week. No longer unlimited but with that much data, I often used it in hotels because the speeds were better and the hotels were blocking certain network services. For instance, I couldn't use VPN at one hotel but I could use it with TIM.
OK this part is very encouraging to hear for consumers:
Roaming fees for voice calls, texts and internet access will
effectively be completely scrapped under the proposals, which are part
of a broader effort to create a single European telecoms market.
The group of 27 European Commissioners voted in Brussels on Tuesday
to drive the package through in time for the European elections in May
next year, to come into force as soon as 1 July 2014.
They agreed that this time next year we will have got rid of these
charges, a Brussels source said
Officials will draw up and publish detailed proposals in the next six
weeks.
They expect the death of roaming charges to typically wipe 2pc off
mobile operators revenues, after several years of tightening
regulations designed to put an end to shockingly high bills for
holiday makers and business travellers. They argue that operators will
gain in the longer term by customers using their mobiles more abroad,
particularly to access the internet.
effectively be completely scrapped under the proposals, which are part
of a broader effort to create a single European telecoms market.
The group of 27 European Commissioners voted in Brussels on Tuesday
to drive the package through in time for the European elections in May
next year, to come into force as soon as 1 July 2014.
They agreed that this time next year we will have got rid of these
charges, a Brussels source said
Officials will draw up and publish detailed proposals in the next six
weeks.
They expect the death of roaming charges to typically wipe 2pc off
mobile operators revenues, after several years of tightening
regulations designed to put an end to shockingly high bills for
holiday makers and business travellers. They argue that operators will
gain in the longer term by customers using their mobiles more abroad,
particularly to access the internet.
The reforms are designed to encourage radical consolidation of
European mobile network operators. A source familiar with the plans
said the European Commission believes there are far too many companies
offering services across the 27 member states and that the
fragmentation is a barrier to badly-needed investment. Without
upgrades, mobile networks will buckle under the pressure of the rapid
growth in internet traffic, it is feared.
There are around 100 operators in Europe and only four in the US,
the source said. Thats not sustainable if were going to have a
single market and investment. Europe has less 4G mobile broadband than
Africa at the moment.
Consolidation is not the aim. The aim is a single market, but if it
means we get fewer, stronger operators, thats good.
With no roaming fees, officials believe the single market will mean
foreign operators will be able to compete for British customers, and
vice-versa. They are likely to form airline-style alliances that will
lead to mergers, it is hoped.
European mobile network operators. A source familiar with the plans
said the European Commission believes there are far too many companies
offering services across the 27 member states and that the
fragmentation is a barrier to badly-needed investment. Without
upgrades, mobile networks will buckle under the pressure of the rapid
growth in internet traffic, it is feared.
There are around 100 operators in Europe and only four in the US,
the source said. Thats not sustainable if were going to have a
single market and investment. Europe has less 4G mobile broadband than
Africa at the moment.
Consolidation is not the aim. The aim is a single market, but if it
means we get fewer, stronger operators, thats good.
With no roaming fees, officials believe the single market will mean
foreign operators will be able to compete for British customers, and
vice-versa. They are likely to form airline-style alliances that will
lead to mergers, it is hoped.
But if the operators which emerge out of this consolidation are Vodaphone, France Telecom, Deutsche Telekom and other similarly higher-priced carriers, then what?
I used a 25-Euro 10 GB package from TIM during a 2-week trip in Italy last week. No longer unlimited but with that much data, I often used it in hotels because the speeds were better and the hotels were blocking certain network services. For instance, I couldn't use VPN at one hotel but I could use it with TIM.
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"Consolidation is not the aim. The aim is a single market, but if it
means we get fewer, stronger operators, that‚s good"
Huh, can anyone explain how less competition is better ??? This is the problem we have in Canada - only 3 carriers, with 2 of them sharing their infrastructure. And apparently we pay the highest cellphone bills in the world. They tried to introduce competition by auctioning the AWS spectrum, but these carriers are going bankrupt.
means we get fewer, stronger operators, that‚s good"
Huh, can anyone explain how less competition is better ??? This is the problem we have in Canada - only 3 carriers, with 2 of them sharing their infrastructure. And apparently we pay the highest cellphone bills in the world. They tried to introduce competition by auctioning the AWS spectrum, but these carriers are going bankrupt.
#9
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Fewer operators doesn't necessarily mean less competition, because they're counting the number of operators throughout the whole of Europe but competition happens within individual countries. At the minute, an operator in one country does not compete with an operator in a different country. With a single market, there may be fewer operators in total, but more operators available in each country. That's the hope anyway - we'll see if it turns out that way in practice.
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I only really have experience of the UK market, where there are now four proper operators and countless virtual operators. Competition has not been led by the four proper operators (although, to be fair, the newest one, Three, is the price leader), but by the virtual operators; and they have chosen international calling as one of their main competitive advantages.
Whilst, in general, I support the EU's initiative, I do worry that it could weaken or even fatally damage, the virtual operators who are our only real hope for lower prices.
Whilst, in general, I support the EU's initiative, I do worry that it could weaken or even fatally damage, the virtual operators who are our only real hope for lower prices.
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I only really have experience of the UK market, where there are now four proper operators and countless virtual operators. Competition has not been led by the four proper operators (although, to be fair, the newest one, Three, is the price leader), but by the virtual operators; and they have chosen international calling as one of their main competitive advantages.
Whilst, in general, I support the EU's initiative, I do worry that it could weaken or even fatally damage, the virtual operators who are our only real hope for lower prices.
Whilst, in general, I support the EU's initiative, I do worry that it could weaken or even fatally damage, the virtual operators who are our only real hope for lower prices.
A very fragmented market may make things tougher for MVNOs, as perhaps can be seen with the history of MVNO global SIM companies' lack of staying power.
#12
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OK, so this new rule passed another milestone and is definitely slated to take effect in July 2014.
By the end of this month, they will outline the specific implementation rules, so we should have a clear idea of what we should and shouldn't be able to do next year.
http://www.wired.co.uk/news/ar.../roaming-charges-die
By the end of this month, they will outline the specific implementation rules, so we should have a clear idea of what we should and shouldn't be able to do next year.
http://www.wired.co.uk/news/ar.../roaming-charges-die
#13
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Actually, there are two different things.
They do have existing laws to decrease roaming charges every year.
But the EU commissioner wants to eliminate them entirely, which would be a big change, to set up one mobile market across the EU. The politicians like the idea but the mobile industry may not necessarily like it.
This more radical proposal may or may not pass into law. The industry may lobby heavily against it.
Then there could be all kinds of unintended consequences.
The carriers make a lot of money on roaming fees. If they're abolished, their response may be to raise fees for other services.
Here's a better overview:
http://www.nytimes.com/2013/05...?pagewanted=all&_r=0
They do have existing laws to decrease roaming charges every year.
But the EU commissioner wants to eliminate them entirely, which would be a big change, to set up one mobile market across the EU. The politicians like the idea but the mobile industry may not necessarily like it.
This more radical proposal may or may not pass into law. The industry may lobby heavily against it.
Then there could be all kinds of unintended consequences.
The carriers make a lot of money on roaming fees. If they're abolished, their response may be to raise fees for other services.
Here's a better overview:
http://www.nytimes.com/2013/05...?pagewanted=all&_r=0
#14
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I have a hard time believing that this will come into force without at least some sort of "fair use" limitation on roaming.
There are significant price differences across the EU in mobile operator pricing. I believe that the UK is on the cheap side. If this is taken literally, I could live in France but with a UK SIM, paying the lower UK rates and there would be no roaming surcharge.
It's hard to imagine that the powers that be would allow that scenario.
There are significant price differences across the EU in mobile operator pricing. I believe that the UK is on the cheap side. If this is taken literally, I could live in France but with a UK SIM, paying the lower UK rates and there would be no roaming surcharge.
It's hard to imagine that the powers that be would allow that scenario.
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I kind of agree with those voices who ask exactly where the Eurocraats study economics. The carriers are businesses, and businesses exist to make money. Invariably, they will make up for the short fall in areas not regulated by Europe.
This is great news if you regularly do business in Europe. If you do business in Africa, the news is quite bad enough already.
Given that some pretty good packages are available already (i.e. 3 per day for 30mb in Europe, rising to 9 per day for the Middle East, on Orange), I think this move is perhaps a step too far. Remember, the carriers were financially gutted in some states, by the 3G auction process, and we've been putting up with longer contracts ever since.
This is great news if you regularly do business in Europe. If you do business in Africa, the news is quite bad enough already.
Given that some pretty good packages are available already (i.e. 3 per day for 30mb in Europe, rising to 9 per day for the Middle East, on Orange), I think this move is perhaps a step too far. Remember, the carriers were financially gutted in some states, by the 3G auction process, and we've been putting up with longer contracts ever since.