Mobile roaming charges to be scrapped in EU

Roger1

... from 1 July 2014 if all goes well, according to the Daily Telegraph 14.06.2014.
http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/telecoms/10119159/EU-to-end-mobile-roaming-charges-next-year.html

Consumers will next year be able to use their mobile phones across the European Union for the same price as at home, it is planned, after officials voted to fast-track major reforms of telecoms regulation.

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. ...

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....

This can't come soon enough for me. It's tedious to switch off roaming when travelling and to rely on foreign SIMs with different numbers.

Jon_01

So the prices elsewhere will go up to fill the revenue hole created by this... great.

Techhead_2

It's bizarre, why does the EU want to reduce the number of operators.which will stifle competition ?

d123

Techhead wrote: »

It's bizarre, why does the EU want to reduce the number of operators.which will stifle competition ?

From the article

“There are around 100 operators in Europe and only four in the US,” the source said. “That’s not sustainable if we’re 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, that’s good.”

NFH

Techhead wrote: »

It's bizarre, why does the EU want to reduce the number of operators.which will stifle competition ?

If, as you suggest, inflated roaming charges are currently subsidising lower domestic charges, then this shouldn't be happening. For example, why should I pay a higher price for data while abroad in order to subsidise a lower price for you to use data in the UK? This is totally unjustified.

Techhead_2

NFH wrote: »

If, as you suggest, inflated roaming charges are currently subsidising lower domestic charges, then this shouldn't be happening. For example, why should I pay a higher price for data while abroad in order to subsidise a lower price for you to use data in the UK? This is totally unjustified.

I didn't mention that at all,perhaps you quoted the wrong post? My point is that with less competition on price that prices will go up. My opinion is that this is one of those things that a simplistic reading seems to be good for the consumer but will ultimately end up costing .

I think the other poster was suggesting that (as your home network needs to pay the roaming network, as well as their own costs) then IF the EU were to ban roaming charges THEN the operators will need to recoup the extra cost somehow.

It's worth noting that the EU have worded this very carefully; they have not said that roaming use will be included in allowances. So it may transpire that operators will charge the normal (out of bundle) domestic charge for roaming use. For some providers this is more than the existing regulated roaming charges. Issues like this will need to be resolved and I think it unlikely (as many commentators agree) that it will be resolved in time for a 2014 start.

NFH

Techhead wrote: »

I think the other poster was suggesting that (as your home network needs to pay the roaming network, as well as their own costs) then IF the EU were to ban roaming charges THEN the operators will need to recoup the extra cost somehow.

The EU is suggesting that mobile networks form alliances (like airlines) and merge so that there are a handful of pan-European companies and/or alliances. If an O2 UK customer roams on Movistar in Spain, then any payment is an internal payment within the Telefonica group. Taking the example of a Telefonica (O2) customer based in London, there is no more reason for internal payments if he uses his phone on Telefonica's network in Spain or Telefonica's network in Wales. National borders shouldn't affect the pricing.

One change I foresee is no longer having a choice of networks when in other EU countries. You will probably only be able to use your own network. Lycamobile is already doing this with its Toggle Mobile brand. When you roam, you get a local IMSI and can only use Lycamobile's partner network in the visited country.

narika

For consumers like frequent travelers it's more than a good news.

gjchester

narika wrote: »

For consumers like frequent travelers it's more than a good news.

Possibly for some, but most frequent travellers are people travelling on business who will be expensing the costs anyway.

NFH

gjchester wrote: »

Possibly for some, but most frequent travellers are people travelling on business who will be expensing the costs anyway.

That's a ridiculous comment. So what if they are expensing it? That doesn't make it free; someone still has to pay these inflated charges. I know of at least one investment bank whose travel policy doesn't allow any expensing of data roaming charges because they cannot justify the very high cost. And what about those who are self-employed? What about airline cabin crew? I don't think you've really thought about this.

visidigi

NFH wrote: »

That's a ridiculous comment. So what if they are expensing it? That doesn't make it free; someone still has to pay these inflated charges. I know of at least one investment bank whose travel policy doesn't allow any expensing of data roaming charges because they cannot justify the very high cost. And what about those who are self-employed? What about airline cabin crew? I don't think you've really thought about this.

Agreed!

We've got EU regional workers who if they don't travel have a mobile bill of around £8. If they travel for three weeks of the month - its over £1,000.

It will leave a massive revenue gap without a doubt, but thats because we've being getting ripped off for years.