June 02, 2006 Roaming charges and fear of EU Posted by at 08:22 AM | Categories: Regulation

End of March European Union’s Regulators Group proposed that a single Europe-wide cap on wholesale roaming charges to be applied. EU suggested that this would lead to reductions in average wholesale roaming charges of around 60 percent. A month later Vodafone came out and said: "Average European roaming costs for Vodafone customers will be cut by at least 40 per cent by April 2007, when compared to last summer." Yesterday Orange ,T-Mobile, Wind, Telecom Italia, Telenor SA and TeliaSonera announced that they have agreed to slash mobile phone roaming charges. They plan to reduce the cap to 36 euro cents a minute from October 2007 - a cut of almost half from the current wholesale prices.

Cost reduction is almost as much as EU expected but investigation still continues in EU. Some might say that this act from operators proves that market forces work in EU. For me this proves that fear of EU works.12 points for EU.

It seems that regulators influence is going to be needed to fine tune unlimited mobile data plans. At least here in Finland P2P is not allowed to be used in unlimited data plans. If all operators are going to forbid P2P, regulators response is easy to guess. I hope market forces will really work in this case.


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