GSMA statement on European Commission's proposal to regulate roaming retail prices
09 February 2006
9th February 2006 - London - The European Commission's proposal to regulate mobile roaming retail prices is unnecessary and at odds with the region's free market principles, according to the GSM Association, the trade association representing more than 680 mobile operators worldwide.
The GSMA believes the mobile market in Europe is competitive. If the European Commission believes roaming prices are too high, there are already mechanisms with which regulators can address that issue.
The European Commission's proposal to cap roaming charges at the same rates as for calls made across networks within one country is inappropriate, as most roaming calls are international and must be transmitted long distances.
"Roaming is a premium service for a very good reason," said Tom Phillips, Chief Government and Regulatory Affairs Officer at the GSMA. "Connecting calls to people traveling outside their home country is a fundamentally different service to connecting calls to people who aren't roaming. A call by a roaming user has to be relayed via the user's home network, before being routed to its final destination, even if that user is calling another person in the same country ."
The European Commission's proposal for legislation on roaming ignores the existing regulatory framework, which provides a mechanism for national regulators to intervene where necessary. Under European law, national regulators have the power to regulate national roaming markets at the wholesale level, in cases where they deem competition is not working effectively. Regulators in several countries have carried out investigations and decided against intervention.
At the same time, mobile operators are engaged in a dialogue with the European Commission on roaming and other issues.
The European Commission's call for greater transparency on roaming charges also ignores industry's efforts in this area. GSM Europe, the European Interest Group of the GSM Association, formalised the operators' position in 2001 when it introduced a voluntary Code of Conduct on Roaming Tariff Transparency. The Code sets out a minimum level of information that signatories must provide to their customers to ensure transparency. To date, 71 European operators have signed up to the Code.
Over the past year, many European operators have introduced new lower tariffs and discount packages. This has given customers more choice and enhanced value for money.
For further information contact:
David Pringle
GSM Association
Email: press@gsm.org
Mark Smith
GSM Association
Tel: +44 7850 229724
Email: press@gsm.org
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