Mobile telephony is once again in the European Commission's line of fire. Following last year's adoption of legislative measures to regulate this sector, the Commission is adamant to ensure that EU citizens get a good deal when using their mobile phones anywhere in Europe.
Prices of cross-border mobile calls in Europe were capped last year at €0.49 per minute (excluding VAT). But the prices of domestic calls were left in the hands of national authorities or to the competitive forces of the market itself. Roaming SMS and data charges are also still unregulated by EU law to date. The modalities of billing, that is whether per minute or per second, were also left at the discretion of the operators themselves.
The roaming regulation adopted last year, and which is bound to expire in 2010, is now up for review. The European Commission is considering taking further steps in the regulation at an EU level of this important sector of Europe's economy. As from the end of last month and in line with the roaming regulation adopted last year, it has become cheaper to make or receive calls while travelling in the EU. The price ceiling for roaming calls introduced in 2007 has decreased from €0.49 to €0.46 per minute (excluding VAT) for making a call and from €0.24 to €0.22 per minute (excluding VAT) for receiving a call while in another EU country.
The Commission deems that this is not enough. In yet another attempt to lower costs for EU consumers, the Commission is now contemplating the possibility of imposing per-second tariffs for mobile phone calls across the EU while introducing new caps on text messages. Statistics go to prove that European consumers are currently billed for some 24 per cent more than the time they actually spend on the phone during cross-border calls and 19 per cent more for calls they receive. This is because of the fact that tariffs are applied per minute. A call lasting two minutes and 20 seconds is usually billed as a three-minute call. The Commission believes that per-second billing for roaming calls would curb such abuse.
The current cost of data roaming and roaming text messaging is also deemed to be excessively high. It therefore seems likely that the Commission will also seek to impose price caps in this area of mobile telephony.
These initiatives could signify huge savings for European citizens. Using a mobile phone wherever in Europe without incurring exorbitant bills can no longer be considered in today's day and age as a perk but rather as an indispensable consequence of living in a borderless Europe.
• Dr Vella Cardona is a freelance consultant in EU, intellectual property and competition law. She is also a visiting lecturer at the University of Malta.
mariosa@vellacardona.com
Prices of cross-border mobile calls in Europe were capped last year at €0.49 per minute (excluding VAT). But the prices of domestic calls were left in the hands of national authorities or to the competitive forces of the market itself. Roaming SMS and data charges are also still unregulated by EU law to date. The modalities of billing, that is whether per minute or per second, were also left at the discretion of the operators themselves.
The roaming regulation adopted last year, and which is bound to expire in 2010, is now up for review. The European Commission is considering taking further steps in the regulation at an EU level of this important sector of Europe's economy. As from the end of last month and in line with the roaming regulation adopted last year, it has become cheaper to make or receive calls while travelling in the EU. The price ceiling for roaming calls introduced in 2007 has decreased from €0.49 to €0.46 per minute (excluding VAT) for making a call and from €0.24 to €0.22 per minute (excluding VAT) for receiving a call while in another EU country.
The Commission deems that this is not enough. In yet another attempt to lower costs for EU consumers, the Commission is now contemplating the possibility of imposing per-second tariffs for mobile phone calls across the EU while introducing new caps on text messages. Statistics go to prove that European consumers are currently billed for some 24 per cent more than the time they actually spend on the phone during cross-border calls and 19 per cent more for calls they receive. This is because of the fact that tariffs are applied per minute. A call lasting two minutes and 20 seconds is usually billed as a three-minute call. The Commission believes that per-second billing for roaming calls would curb such abuse.
The current cost of data roaming and roaming text messaging is also deemed to be excessively high. It therefore seems likely that the Commission will also seek to impose price caps in this area of mobile telephony.
These initiatives could signify huge savings for European citizens. Using a mobile phone wherever in Europe without incurring exorbitant bills can no longer be considered in today's day and age as a perk but rather as an indispensable consequence of living in a borderless Europe.
• Dr Vella Cardona is a freelance consultant in EU, intellectual property and competition law. She is also a visiting lecturer at the University of Malta.
mariosa@vellacardona.com