European Commission acts to cut cost of texting and mobile data services abroad
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“Europe, through its GSM standard, made mobile telephony attractive across the globe. It is now time to demonstrate that there is a truly single telecoms market in which consumers can use their mobile phone in all 27 EU countries without being punished when crossing a border,” said José Manuel Barroso, President of the European Commission. “If we get this done quickly we will see tremendous growth in SMS and data services, and send a message that lower roaming charges can be a win-win situation for all.”
EU Consumer Commissioner Kuneva said: “If Europe wants to deliver concrete results for its 500 million consumers, then practices whereby operators charge for a service which they do not deliver should not be acceptable. Today, consumers are overcharged by 24% on average for mobile calls they make abroad as roaming calls are very often charged not by the second, but only by the minute. A priority for us is fair treatment of consumers when they cross a border and this is why the Commission decided today to introduce the principle of per second billing for all roaming calls”.
A typical French customer sending a roaming text message from holidays in Italy this summer could pay up to €0.30, while a Czech tourist would pay up to €0.42 (10.00 CZK). In Spain, a Swedish holidaymaker could pay up to €0.40 (3.79 SEK) per message when roaming, a German €0.32, a Pole €0.47 (1.50 ZL), a tourist from the UK €0.63 (£0.40 GBP) and a Latvian even as much as €0.70 (0.49 LVL) per SMS. The Commission therefore proposes a retail cap of €0.11 on roaming text messages (excluding VAT), combined with a €0.04 cap at wholesale level. Wholesale prices are charged by one operator to another for a customer to send a message between their networks. Operators are encouraged to compete below these maximum price caps, set by the Commission after a detailed impact assessment with input from the European Regulators Group (ERG).
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