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EU Mandates Lower Roaming Rates

EU Mandates Lower Roaming Rates

Old May 16, 2007, 8:32 am
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Join Date: Nov 2006
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EU Mandates Lower Roaming Rates

The EU agrees on slashing phone roaming fees. This is lifted from prepaidgsm.net. Carlos Effendi of that group has testified before the European Parliament on this issue and his site is recommended reading in the council's report:

May 15, 2007, 12:15 GMT

Brussels - European Union member states and lawmakers have clinched a preliminary deal on slashing the costs for using mobile phones abroad, an EU source said Tuesday.

The retail price cap in the first year would be set at 49 euro cents per minute for making mobile phone calls abroad, with a wholesale cap at 30 euro cents.

Receiving a call when being abroad would cost 24 euro cents in the first year and fall to 19 cents over time, the source said.

Mobile phone operators would have three months time to implement the new price scheme.

EU governments are expected to decide on the plan in June, in time for the bill to come into force ahead of European summer holidays.

However, EU officials close to the case have said that the new rules could not come into force before autumn due to the bloc's legislative procedures.

The European Commission has repeatedly called on Europe's telecom operators to cut roaming costs and insists that industry has failed to bring them down through self-regulation.

The EU executive drew up plans to regulate roaming rates after finding evidence of huge variations between operators with roaming calls costing some times up to six times those of local mobile calls.

Some 147 million Europeans use roaming services and pay about 8.5 billion euros roaming fees every year.

Roaming rates vary but can account for up to 40 per cent of the price Europeans pay for using their mobile phones elsewhere in the EU. Such 'roaming charges' provide firms with up to 15 per cent of their income, analysts estimate.
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