EU clears final hurdle
for ending mobile roaming charges
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[February 01, 2017]
By Julia Fioretti
BRUSSELS
(Reuters) - European lawmakers clinched a deal early on Wednesday to cap
the wholesale charges mobile service operators pay each other to enable
their customers to use their mobile phones in other European countries,
paving the way for the abolition of roaming fees in June.
The caps on wholesale roaming charges were the last piece of the puzzle
needed for the abolition of retail roaming charges on June 15, 2017, to
ensure companies can afford to continue offering roaming within the EU
once they can no longer charge retail customers for the service.
Under Wednesday's agreement between lawmakers and the Council of EU
member states, wholesale charges for data - which were the most
controversial given the exponential use of mobile Internet - will be
capped at 7.7 euros per gigabyte from June 2017, going down to 2.5 euros
per gigabyte in 2022.
Caps for making calls will decrease from 5 euro cents per minute to 3.2
euro cents per minute, while those for sending text messages will halve
to 1 euro cent from 2 euro cents as of June, said the Council.
"Goodbye roaming," tweeted Miapetra Kumpula-Natri, the EU lawmaker who
negotiated for the setting of wholesale rates on behalf of the European
parliament.
The European Commission - the EU executive - will review the wholesale
caps every two years and propose new ones if necessary.
Wednesday's deal still needs to be confirmed by the full European
Parliament and all member states.
The decade-long battle against roaming charges took on an added
significance after Britain voted to quit the bloc last year in a surge
of anti-EU sentiment, making Brussels keen to demonstrate the benefits
of membership to ordinary citizens.
"Today we deliver on our promise," said Andrus Ansip, European
Commission vice president.
But after the agreement to abolish retail roaming charges in June this
year, policymakers grappled with the challenge of who would foot the
bill as telecom operators still need to pay each other to keep their
customers connected abroad.
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A man makes a phone call using his mobile phone at the Trocadero
Square near the Eiffel Tower in Paris, May 16, 2014.
REUTERS/Christian Hartmann/File Photo
The
difficulty was compounded by wide differences in domestic prices and consumption
patterns across the bloc, making a wholesale cap that suited all national
markets extremely hard to settle.
Countries in northern and eastern Europe where consumers gobble up mobile data
at low prices favored lower wholesale caps to avoid companies raising prices in
their home markets, effectively making poorer customers subsidize frequent
travelers.
However countries in southern Europe where tourism is vital to their economies
worried that if wholesale prices were too low their operators could be forced to
raise domestic prices to recover the costs.
While politicians were quick to proclaim the end of roaming charges, some mobile
service operators warned that the wholesale caps were still too high, which
would force smaller operators to limit their 'roam like at home' offers.
"European citizens expect the end of the roaming surcharges to happen without
losing competitive tariffs and innovative offers," said Innocenzo Genna,
vice-president of MVNO Europe, which represents mobile virtual network operators
who do not own a network, such as Fastweb [SCMNSF.UL], Sky and Liberty Global .
"With the present deal on wholesale caps, they will be heavily disappointed,” he
added.
(Editing by Greg Mahlich)
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