Mobile phone operators will suffer a blow when roaming charges are scrapped but it is unlikely to lead to higher domestic prices, according to industry sources.
With the EU set to abolish roaming charges by June 2017, consumer watchdogs have expressed concern that companies will increase domestic rates to compensate for loss in revenue.
But a former top executive in the mobile phone industry told Times of Malta that competition between local operators would probably be sufficient to ensure that charges do not rise suddenly when the new measures come into effect.
Under the new regime, consumers will pay the same price for calls, text messages and data whether at home or travelling anywhere within the EU.
Consumers’ Association president Benny Borg Bonello had welcomed the move but expressed fears that the new measures would lead operators to raise domestic tariffs instead.
We must ensure that our citizens are able to make uninhibited use of these resources
However, the industry source said the changes will likely encourage travellers to use their mobile phone more often abroad, particularly the use of mobile data, since they would no longer be concerned about excessive charges. This would go some way to mitigate the companies’ losses from roaming charges, the source said.
Roaming charges are currently a valuable revenue stream for operators, both from end-user charges and from a share of the revenue from foreign operators on travellers using their mobiles in Malta.
When contacted, a Melita spokesman insisted the company “wholeheartedly welcomed” the agreement and had no intention of raising mobile rates.
“Any reduction or indeed, scrapping of unnecessary costs for consumers, is in line with Melita’s promise to continue to reduce the costs of mobile communication services,” the spokesman said.
He said Melita strongly believed that mobile users should not be forced to pay a premium for overseas mobile usage.
“Roaming charges worked to the benefit of large international operators and to the detriment of consumers. This matter was always beyond Melita’s control.”
Meanwhile, a spokeswoman for Vodafone said the company had not had the opportunity to review the details of the agreement as the proposed text had not yet been published.
“A certain and stable policy framework for roaming and net neutrality that benefits consumers and would help the telecoms industry to plan its investments in Europe’s digital infrastructure would clearly be welcome,” the spokeswoman said.
“But even after this outcome there remains much to be done to ensure Europe has appropriate and effective regulations for the digital age. We, therefore, look forward to the Commission’s Digital Single Market package and urge it to adopt an ambitious timetable to overhaul outmoded and fragmented rules which threaten to stifle the growth of Europe’s digital economy.”
In a statement, Parliamentary Secretary José Herrera also welcomed the agreement, which he said would ensure affordable communications bills even when travelling overseas.
“Mobile communications and a constant connection to the internet have become a necessity and we must ensure that our citizens are able to make uninhibited use of these resources,” he said.
By the time of writing, mobile operator Go had not replied to this newspaper’s request for comment.