The European Commission wants to force greater competition in mobile phone roaming rates by offering customers the possibility of choosing their network when abroad while keeping the same number and home network.
It is the Commission’s way of responding to networks’ persistence in “ripping off” their customers and ignoring its warnings to stop.
Prices still hover around the maximum cap introduced with EU regulation, with little or no competition taking place even though Brussels has in the recent years forced retail prices down through the capping mechanism.
The Commission has now tabled fresh proposals aimed at opening up the roaming market to more competition and pushing tariffs down further.
Virtual mobile operators, like the ones operated in Malta by companies owned by the two major political parties, will gain access to the roaming networks at set wholesale prices. This means alternatives to consumers wanting to roam can start being offered.
Until mid-2014, when these new rules are set to be introduced, the Commission is once again lowering maximum tariffs, forcing mobile networks to charge up to 11c less for outgoing calls and slashing data roaming prices.
Launching the proposals, which have still to be approved by the European Parliament and member states, Digital Agenda Commissioner Nellie Kroos said the root cause of the problem was the lack of competition in roaming markets.
“Giving customers more choice and providing alternative operators easier access to the roaming market should immediately bring down prices for data roaming, where operators currently enjoy outrage-ous profit margins,” she said.
The EU argues that in the long term, roaming prices should not be different from charges for local calls as technically there is no reason to justify the different pricing structures.
Before the introduction of EU legislation, Maltese consumers were paying among the highest roaming tariffs in the EU when using their mobiles abroad. Despite reductions implemented following EU rules, the three Maltese networks have kept their prices as high as possible, close to the maximum EU cap.
Proposed changes
The proposed rules will increase competition on the roaming market in two ways:
• From July 1, 2012, mobile operators without their own networks will have the right to use other networks in member states at regulated wholesale prices, which will fall significantly. This will encourage more operators to compete on the roaming market and in turn push down consumer prices.
• From July 1, 2014, customers will have the option to sign up for a cheaper mobile roaming contract, separate from their contract for national mobile services, while keeping the same phone number. Consumers will therefore be able to easily compare roaming offers (independently from other mobile services) and benefit from lower prices.