Mobile roaming charges are an “outdated concept” and could soon be scrapped entirely, EU telecoms commissioner Neelie Kroes has said.
A cap on mobile roaming data bills at E50 has been enforced by the European Parliament since July 1, 2010.
However,…
Mobile roaming charges are an “outdated concept” and could soon be scrapped entirely, EU telecoms commissioner Neelie Kroes has said.
A cap on mobile roaming data bills at E50 has been enforced by the European Parliament since July 1, 2010.
However, speaking in Brussels at the European Telecommunications Network Operators Association’s annual conference, Kroes highlighted the “lack of a really competitive single market for all aspects of telecoms services in Europe”.
She added: “A true single market is one where the price differences between voice, SMS and data relate only to the actual cost of providing these different services.”
Rather than adjusting the current cap on roaming charges, Kroes revealed the EU was fully prepared to take bolder measures.
“We will not be proposing another barrier, and nor will we propose endless tweaking of the current price capping arrangement without adding anything new,” she said.
“I want the gap between roaming and domestic prices to approach zero. The sooner the better.”
Her comments will further upset some in European telecoms sector, which on Monday heard EU proposals for regulating the next generation of broadband networks.
The EU intends to force large telcos to open up their high-speed broadband networks to smaller competitors.
The proposals defy pleas from incumbent operators such as Telefonica and Deutsche Telekom, which argue that their fibre investments should be treated differently to old copper networks, in order to encourage growth.
According to James Walsh, a partner at law firm Eversheds, if regulation goes further than is necessary it could scare off potential investors.
“The trouble that regulators face with next generation networks is where to strike the balance between regulating the price that network operators have to offer for wholesale access, and allowing them a fair return on their investment,” said Walsh.
“In cases where incumbent network operators have significant market power, some constraints on pricing need to be put in place to ensure that, ultimately, consumers can obtain reasonable prices for communications services. However, this should not be to such an extent as to stifle technological developments. National regulators within Europe will need to take this into account to ensure that next generation networks are bankable.”
