Commissioner Neelie Kroes (Digital Agenda) warned mobile operators last February that, on her initiative, in June, the European Commission would tackle roaming rates in the EU. Roaming charges are the extra fees imposed by operators when cell phones make or receive calls outside the subscriber's country of residence. The Commission finds that they are still too high in spite of two capping regulations.
In the draft regulation seen by Europolitics, the Commission will propose not only to prolong the European ceilings in force since 2007 on retail charges (billed to consumers) for calls placed or received and, since 2009, for text messages, but also to set a ceiling on retail charges for mobile internet access, regulated so far at wholesale level (prices charged between telecoms networks).
In detail, the ceiling for a call made by cell phone in an EU state other than the state of residence, set at 39 eurocents a minute today (excluding VAT), would drop to 32 cents on 1 July 2012, then to 28 cents on 1 July 2013 and 24 cents on 1 July 2014. For calls received in another state, the ceilings would drop from 15 cents today to 11 cents on 1 July 2012 and 10 cents a year later. The rate for text messages would be lowered from 11 cents per message today to 10 cents on 1 July 2012. These rates would be in force until 30 June 2016, adds the Commission.
MOBILE INTERNET
The data transfer market, which the EU was reluctant to regulate three years ago because it was booming, is now considered mature enough for an intervention on retail prices. Since the 2009 regulation, notes the Commission, cuts in wholesale rates for data roaming services have not been passed along to consumers, who still pay at much higher rates than national prices, rates not justified by the costs paid by operators. According to the figures cited by Kroes in February, European consumers often pay less than five cents to download a megabyte via a cell phone in their own country. However, they pay up to 2.60 per megabyte in another EU country (a single photo can amount to three to four megabytes). The Commission therefore proposes a maximum roaming price of 90 cents (excluding VAT) per megabyte from 1 July 2012, then 70 cents in 2013 and 50 cents in 2014.
FLAT-RATE ROAMING
Lastly, the Commission plans to innovate by proposing to give consumers the opportunity to choose a specific flat rate for roaming services without having to change phone number. From 1 July 2014, the original operators will have to inform their subscribers that they have the possibility to choose a competitor's roaming services. Customers will have two months to choose, but those who fail to act within that period may do so at any time subsequently. The service must be free and in effect within five working days and must guarantee that the subscriber keeps his phone number and national services. The SIM card would remain the same for national and roaming services.
Last February, Kroes expressed disappointment in the limited extent of competition between mobile operators. Instead of presenting more attractive offers, most have simply set their prices at the European ceiling rate. "Most respondents recommend further intervention" by the EU after 30 June 2012, the date of expiry of the current roaming regulation, the commissioner explained in the wake of a public consultation. This was certainly the opinion of consumer groups and of all the national regulators. It was also the view expressed by a number of mobile operators experiencing problems in terms of wholesale prices. The regulation of European wholesale rates will remain in force until 2022, the expiry date of the new regulation, which is subject to co-decision (Council of Ministers and EP).
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