EU caps roaming mobile phone fees
The cost of making mobile phone calls in Europe is set to fall substantially
after lawmakers backed plans to cap so-called "roaming" charges.
The amount mobile customers are charged by local phone operators for using their
handsets while abroad should now fall by as much as 75%.
More than 150 million people across Europe will be affected by the changes in the
pricing regime.
But the new charges are not likely to come into effect until later this year.
Price cuts
The changes still need to be approved by the European Commission and member
governments of the 27-nation bloc, although these approvals are considered a
formality.
A European Commission spokesman described the vote as "wonderful", saying many
people would now feel able to use their phones abroad for the first time.
But consumers will not feel the benefits of lower prices until late July or early August
at the earliest, too late for many people travelling in Europe this summer.
Text messaging will not be covered by the proposals.
Mobile phone users should feel the benefits of the single
market and not be penalised simply the crossing a border
Fiona Hall, Liberal Democrat MEP
Brussels has sought for some time to regulate the cost of making mobile phone calls
when abroad, after finding huge differences in what people have to pay in different
countries of the EU.
Under the plans, the cost of making a mobile call anywhere in the EU would be
capped at 49 euro cents (33p) a minute in year one, while receiving a call would cost
24 cents (16p) at most.
These costs should now fall to 46 euro cents (31p) and 22 cents (14.9p) respectively
in year two, and 43 cents and 19 cents in year three.
British mobile users currently have to pay up to 5.92 euros (£4.03) for a four-minute
call made while in Spain.
Under the changes, this would fall to 1.96 euros (£1.33).
As part of the plans, mobile users would receive a free text message informing them
how much they will have to pay when travelling abroad.
Industry anger
Members of the European Parliament (MEPs) have backed the plans, saying that
they wanted to focus on consumer priorities.
Liberal Democrat MEP Fiona Hall said the new law would protect consumers from
"abusive charges" that bore no relation to phone operators' costs.
"Mobile phone users should feel the benefits of the single market and not be
penalised simply by crossing a border," she said.
Our members operate in a highly competitive market
Tom Philips, GSM Association
But she added that "consumers should be warned that texting and data roaming are
not covered under this law and charges for these services are still excessive".
Some phone firms have already cut roaming costs in anticipation of the changes.
But the industry reacted angrily to the plan, saying that regulators had failed to prove
the market was not working properly and the move had been driven by "political
expediency".
"Mobile phone operators price their services to a broad range of customers," said
Tom Philips, from the GSM Association, the industry body.
"Our members operate in a highly competitive market."
The price caps may mean that smaller firms find it difficult to compete in the future
and that domestic call charges could rise as a result, he added.
Story from BBC NEWS:
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Published: 2007/05/23 11:28:00 GMT
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EU decries high mobile phone cost
The European Commission says some mobile phone users are turning off their
handsets when abroad because of "excessively high" roaming charges.
Its call came after a survey conducted for the Commission found 70% of Europeans
want it to act to reduce the cost of cross-border mobile calls.
The commission first said in July that it intended to cap roaming charges.
Europe's mobile phone networks insist legislation is not needed as they are already
reducing their roaming prices.
Four-times higher
Reaffirming its intention to bring in caps, the Commission said its latest survey also
found that calls to a mobile in another country within the EU could be as much as four
times higher than a call within one nation.
European Union Information Society Commissioner Viviane Reding, who is leading
the caps plan, said the current high prices were putting off people from using their
phones while on holiday.
Commissioner Viviane Reding is leading the attack on roaming charges
"Excessively high prices restrict mobile usage while abroad," she said.
"This hurts consumers, it hurts European industry and it hurts Europe."
The legislation to cap roaming charges is currently being debated by the European
Parliament, and the Commission says it wants the new law adopted before the 2007
summer season.
However, mobile phone operators insist the legislation is not needed, and firms such
as Vodafone and Deutsche Telekom have already announced plans to reduce their
roaming charges.
According to the Commission, the European roaming market is worth 8.5bn euros
($11bn; £5.7bn) a year, or 5.7% of the sector's revenues.
The Commission estimates that its legislation will save European phone users 5bn
euros a year.
Story from BBC NEWS:
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Published: 2006/11/08 10:41:14 GMT
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MEPs back cheaper international mobile
fees
Published: Thursday 12 April 2007 | Updated: Friday 13 April 2007
A key committee in the Parliament backed a proposal, on 12 April, to slash costs for mobile
phone customers using their handsets in other EU countries and to make the cheaper rates
apply automatically to all users.
Background:
According to Commission figures, average charges paid by roughly 147 million EU citizens
making and receiving phone calls abroad (so-called "roaming") are still five times higher than
the actual cost incurred by operators for providing the service.
Thanks to these unjustifiably high fees, mobile operators have been reaping in an estimated
€8.5 billion per year.
At the start of the 2006 holiday season, the Telecoms Commissioner Viviane Reding
presented draft regulation to introduce a cap on such charges, which currently range from
€0.58 to €5 per minute.
Issues:

Cheaper cross-border calls…
The Parliament’s 54-member Industry, Research and Energy Committee (ITRE), on 12 April,
backed a report, drafted by Austrian MEP Paul Rübig, calling for roaming charges to be
capped at a maximum €0.40 for outgoing calls, and €0.15 for incoming calls (plus valueadded tax).
This goes further than what was proposed by the Council, i.e. a cap of €0.50 for outgoing calls
and €0.25 for incoming calls – figures which were supported by another Parliament
Committee (Internal Market and Consumer Protection Committee or IMCO) in March.

…for everyone…
The ITRE Committee voted that all European mobile phone users should automatically
benefit from the new regulated charges when using their handsets abroad. Customers may
also decide to move to cheaper packages offered by other mobile operators (‘opt outsystem’).
This vote reveals a split in Parliament, after the IMCO Committee, in March (EurActiv
23/03/07), backed a proposal that would have made the cheaper roaming tariffs available only
for those who explicitly told their operators that they wanted the new rates (‘opt-in’
mechanism).

…as of next summer?
The Commission is keen to implement the rules by July 2007. But Parliament and member
states must first agree on all details of the rules, including the exact tariff caps and who they
should apply to. Disagreements could lead to the legislative procedure being extended by
anything from a few months to a year.
Positions:
The GSM Association (GSMA), which represents mobile operators, warned of "serious
harm" to the industry should the low roaming caps be enacted. It said that caps at the levels
proposed by the Parliament’s Industry Committee would give mobile operators no scope to
compete with each other and force them to apply tariffs that are below costs. Instead, the
association calls for caps of at least €0.65 for making calls and €0.35 for receiving calls,
adding: “At a time when Europe is trying to stimulate investment and innovation, these
inappropriate and inconsistent proposals are becoming increasingly removed from the
economic realities of the mobile market.”
EU Information Society Commissioner Viviane Reding welcomed the decision to
introduce automatic price protection for all roaming users saying: “This is the solution also
favoured by the Commission, as it is easy to handle and avoids red tape both for consumers
and for operators. It also means that mobile operators will now have to convince consumers
that they offer an even better package than prescribed by the new EU roaming rules. This is a
strong incentive for more competition among mobile operators.”
Austrian MEP Paul Rübig (EPP-ED), ‘rapporteur’ on roaming in the Industry
Committee, hailed the introduction of price caps as “a major success for European
consumers”, but added: "Nevertheless I am less happy with the decision of the committee to
vote for an automatic opt-out tariff for all mobile phone contracts. This amounts to forcing all
consumers into a new tariff model, which might lead to drastically increased costs for the
industry. Personally I would have favoured a voluntary opt-in model, as I am convinced that
European consumers are responsible and mature enough to make up their minds on their
own."
But, Reino Paasilinna, Socialist Group ‘shadow rapporteur' on the issue said: "The 'opt
out' will automatically ensure all consumers' roaming charges are capped far below what most
consumers are currently paying, but with a choice to shop around if consumers prefer a
different package. It will also provide an incentive for operators to offer better deals."
Greens/EFA shadow rapporteur David Hammerstein welcomed the Industry Committee’s
rejection of the 'opt in' system: “This 'opt in' would have given service providers the
opportunity to pull a 'fast one' on their customers - enabling them to take advantage of
customers who are not informed about the changed tariffs and continue to apply their
excessive roaming fees.” But he regretted that the Committee had supported the proposal for a
'sunset clause' under which the regulation would expire after three years, unless the
Commission proposes its extension.
BEUC, the European Consumers' Organisation said the vote was “a step in the right
direction”, but pointed to some “still unsatisfactory results”, including the fact that the
legislation would expire after three years and that the price caps are still too high and do not
reflect the real costs.
EU setback for mobile phone industry
By Sarah Laitner in Brussels
Published: April 12 2007 11:10 | Last updated: April 12 2007 11:10
The European mobile phone industry on Thursday suffered a setback when an
influential parliamentary committee backed plans to slash the cost of cross-border
calls.
Legislators in Brussels voted to protect the EU’s 479m mobile phone users from
expensive fees to make and receive calls while travelling in European countries other
than their own.
The industry committee in the European parliament called for maximum charges of
€0.4 per minute to make a call and €0.15 per minute to receive one.
Acknowledging that price controls were inevitable, operators had called for higher
caps of €0.65 and €0.35 respectively.
Mobile phone groups such as Vodafone have fought hard against the plans to force
cuts to ”roaming” rates, which are estimated to be worth €8.5bn a year to the EU’s
telecoms industry.
Viviane Reding, EU telecoms commissioner, last year proposed regulation of
international charges after claiming that consumers paid unjustifiably high roaming
fees. She wants cuts of up to 70 per cent.
The vote by the industry committee in Brussels sets the stage for a binding decision
on roaming rates by the full European parliament assembly next month and the
suggested price caps could yet change.
EU telecoms ministers are expected to hold the final vote on the proposal in June.
Copyright The Financial Times Limited 2007
EU ambassadors endorse deal to slash mobile phone roaming
rates
Wed May 16, 2:30 PM ET
BRUSSELS (AFP) - Representatives from the 27 EU member states on Wednesday
endorsed a plan to cap so-called roaming rates for mobile phones, bringing the goal
of slashing prices for calls made abroad a step closer.
Under the agreement, rates for calls made while in other EU countries would be
capped in the first year of application at 49 euro cents (66 US cents) a minute before
tax while receiving calls could cost no more than 24 cents.
The ceiling for roaming services would come down even lower in the second year,
falling to 46 and 22 cents and then 43 and 19 cents in the third year.
EU ambassadors "endorsed the agreement on roaming fees," the German EU
presidency said in a statement after the talks concluded on Wednesday.
The proposals must now go to a plenary session of the European parliament next
week, where passage could be tougher, before EU ministers get to bestow the final
seal of approval on June 7.
The European Commission drew up the plans last year to regulate roaming rates
after it found evidence of huge variations between operators' prices, with some
roaming calls costing up to six times those of local mobile calls.
The package has the industry, which argues that fierce competition has already
driven down prices, up in arms and it has been lobbying hard to get the plans
watered down.
Although the new regulations could go into effect as soon as mid-July, mobile phone
users will likely not be able to benefit from the new rates until after the end of summer
or early autumn.
The Commission had hoped that the new rates would be in place by the European
summer holidays.
Copyright © 2007 Yahoo!
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EU agrees plan for cheaper calls abroad[
Published: Wednesday 16 May 2007
Brussels' attempts to slash the cost of using a mobile phone abroad before the start of the
summer holidays came a step closer to success after EU countries and MEPs successfully
hammered out a compromise deal following months of strenuous negotiations.
Background:
According to Commission figures, average charges paid by roughly 147 million EU citizens
making and receiving phone calls abroad (so-called roaming) are still five times higher than
the actual cost incurred by operators for providing the service.
These fees, which currently range from €0.58 to €5 per minute, allow mobile operators to reap
in an estimated €8.5 billion per year.
At the start of the 2006 holiday season, Information Society Commissioner Viviane Reding
presented a draft regulation to cap such charges. But, the EU executive, its 27 member states
and members of the European Parliament have been finding it hard to agree on a final
package.
A vote in Parliament had been scheduled for 9 May 2007 but had to be postponed, due to a
compromise. The main issues dividing MEPs and national telecommunications ministers
were:


Maximum cost for making an international call: The Parliament and
telecommunications ministers have been haggling about the size of the price cuts for
months. In the latest attempt to reach a compromise, MEPs had called for charges to
be cut to €0.45 per minute for outgoing calls and €0.20 for incoming calls, while
ministers demanded higher fees (€0.60 and €0.30 respectively) and more industryfriendly terms.
Implementation: Disagreement had also been rife over whether customers should
benefit automatically from the new EU tariff when using their handsets abroad ('optout' system) or whether they would have to make an explicit request to their operators
to benefit from the new rates ('opt-in' mechanism). Governments had been pushing for
the latter solution.
Issues:
Holidaymakers could see their mobile-phone bills decrease this summer if EU member states
and the full Parliament give their approval to a compromise reached on 15 May between a
delegation of MEPs and the Council Presidency.
After several rounds of tough negotiations, a compromise was agreed that would see annually
staged cuts, over three years, in charges on calls placed and received abroad.
Initially, the cost of making a call would be set at €0.49, while it would cost just €0.24 to
receive a call. The prices would then fall to €0.43 for outgoing calls and €0.19 for incoming
calls in 2009.
The wholesale rate that network operators charge each other to connect a call would be
limited to €0.30 a minute in the first year and go down to €0.26 in 2009.
If adopted, the preliminary deal would come into effect in July and all customers would see
the new tariffs apply automatically three months later – or earlier, if they request them during
this transition period.
Positions:
The GSM Association (GSMA), which represents more than 700 mobile operators around
the world, has warned that consumers should not celebrate yet as phone companies could be
forced to increase domestic charges in order to make up the shortfall.
"We're disappointed. The price caps are very low. They leave no room for competition below
those levels. They will become the standard tariff," said David Pringle, spokesman for the
GSMA.
He said that the proposal "smacks of a planned economy-style approach to the market", and
added that informing all customers of their tariff choices would be a "huge exercise in
logistics".
EPP-ED MEP Paul Rübig, Parliament's rapporteur on the roaming regulation, said:
"We have promised to deliver before this summer and to bring down roaming prices
considerably. It is time for all member states to live up to this promise."
"We can't guarantee an agreement, but we're almost there," added Industry Committee
Chairwoman Angelika Niebler (EPP-ED).
Giles Chichester, industry spokesman for the British Conservatives in Parliament, said
that the compromise was not perfect, as he had hoped that charges for receiving calls while
abroad would be eliminated and that warning icons informing people of the charges before
they make or receive a call would also be made mandatory.
However, he concluded: "This proposal will protect innocent consumers going on holiday in
parts of Europe from receiving a nasty surprise in the form of their mobile-phone bill on their
return."
"I would have thought we could have gone the extra mile, and I think there is room for
improvement," said Socialist MEP Joseph Muscat.
Greens/EFA shadow Rapporteur David Hammerstein said: "While today's proposal falls
short of the cuts the Greens felt were necessary, it goes some way towards bringing the great
roaming swindle into check and making it easier for Europeans to call across borders."
He expressed satisfaction that the new Eurotariff would apply to all consumers by default,
saying: "The proposed 'opt in' would have given service providers the opportunity to pull a
'fast one' on their customers - enabling them to take advantage of customers who are not
informed about the changed tariffs and continue to apply their excessive roaming fees."
"The sooner tariff reductions enter into force, the better for EU consumers," he concluded.
Latest & next steps:





16 May 2007: Permanent representatives of the 27 member states in COREPER are
expected to give its approval to the compromise package.
21 May 2007: Expected vote in Parliament's industry committee.
23 May 2007: Expected vote in Parliament.
7 June 2007: European telecommunications ministers expected to vote in Council.
If adopted, the preliminary deal would come into effect in July.
www.euractiv.com
Victory for consumers in EU on
roaming cost
The Associated Press
Published: May 23, 2007
STRASBOURG, France : Mobile phone users in the European Union could enjoy
cheaper rates for calls made and received abroad as early as August, after EU
lawmakers endorsed a deal Wednesday to cap mobile phone roaming fees in the 27nation bloc.
The European Commission, the bloc's executive arm, has long argued operators are
reaping massive, unjustified profits from high roaming charges. The caps will force
them to slash the prices they charge consumers for making and receiving calls
outside their home markets by up to 70 percent.
The landmark measure, which is all but certain to be backed by EU
telecommunications ministers next month, should become binding on June 29, said
German Economy Minister Joachim Wuermeling, whose country holds the rotating
EU presidency.
Service providers will then have one month to offer customers a new pricing structure
with considerably cheaper roaming rates - the extra charges added to the cost of a
mobile phone call made or received abroad. Mobile phone users will have another
two months to choose whether they want to go with the cheaper roaming or stick with
their existing service contracts.
That means customers would be able to benefit from the capped rates in August,
said EU Telecommunications Commissioner Viviane Reding.
"This is putting an end to the saga of excessive roaming charges. The regulation will
protect the vast majority of ordinary customers who up to now have been heavily
overcharged when traveling abroad," she said before the vote in the European
Parliament.
Currently, a Maltese calling home from Latvia can end up paying as much as 11.21
euros ($15.19) for a four-minute conversation.
Under the new rules, the retail roaming cap will be set at 0.49 euros (66 cents) per
minute for making a call when abroad and 0.24 euros (33 cents) per minute for
receiving one, plus VAT.
The price ceilings would drop further, to 0.43 euros (58 cents) for making calls
abroad and 0.19 euros (26 cents) for receiving them, by 2009. The regulation will
then lapse automatically, unless the EU decides to extend it.
"I hope very much this won't be necessary," Reding said.
The wholesale charge that a "visited" operator can levy on the "home" operator for
providing roaming will be capped at 0.30 euros (40 cents) a minute.
"Crossing the borders was used as leverage to generate higher prices, which was
unacceptable," Wuermeling said. "All of us agree the market requires rules and
competition must be fair, and that wasn't the case of roaming, because the consumer
had no choice."
Mobile operators draw between 10 percent and 18 percent of their revenues from
international roaming charges, according to a 2006 study by research firm
Evalueserve.
The telecom industry has likened it to a communist-style planned economy regulation
and has said it may increase the cost of local calls to make up for the losses of
revenue from roaming.
"These price caps leave very little room for competition, for innovation, they will harm
this market," said David Pringle, spokesman for the GSM Association of Europe's
mobile phone operators. "Also, it'll be difficult to implement the changes in the time
frame they're envisioning."
Some 150 million mobile phone customers in the EU use roaming to make calls
outside their home nation every year.
The roaming caps represent one of the most significant pieces of EU regulation in
recent years. The legislative procedure in the European Parliament has taken just
several months, much less than usual. Some EU laws are debated for years.
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