Just when European cell phone operators might have thought that their ‘voluntary’ schemes to reduce the costs of regional roaming might have headed off remedial regional legislation comes news that the EC is back on the case. Citing a Europe-wide survey by Eurobarometer and the recent development of international mobile roaming prices, the EC concludes that high roaming charges are deterring Europeans from using their mobile phones abroad. The EC also claims that an overwhelming majority of EU citizens believe the EU should step in to make sure that prices for making and receiving calls on mobile phones when travelling in other EU countries are not substantially higher than those at home. And, according to the updated EC roaming website, European mobile phone users continue to pay between €4 and €6 for a four minute roamed call abroad, and in some cases roaming prices for such a call even reach more than €12.

“Excessively high prices restrict mobile usage while abroad. This hurts consumers, it hurts European industry, and it hurts Europe,” says Information Society and Media Commissioner Viviane Reding. “Reducing roaming prices is not only a political responsibility of the European Commission, but can also be an interesting business model, as demonstrated by some operators who have started to move in this direction in recent months with the introduction of special roaming packages. I call on all mobile operators to help tear down this last visible border in Europe’s internal market. It is not acceptable that the burden of international mobile roaming continues to be shouldered by ordinary citizens who pay standard tariffs.”

As you might expect the European cell phone operators- in the form of the GSM Association (GSMA) - see things a little differently. According to the GSMA the average price for making and receiving a mobile phone call when roaming within Europe has fallen by 22% since 2005. This estimate, contained in a retail price index compiled by the AT Kearney consultancy, sort of begs the question: so why were people paying a fifth more a year ago?

In any event, the AT Kearney index apparently shows the average price of making and receiving a call while roaming away from home has fallen to €0.65 per minute (or €2.6 for a four-minute call), down from €0.83 per minute in 2005. ‘Facilitated’ by the GSMA Association, AT Kearney calculated the average price per minute using July and August 2006 data supplied by mobile operator groups with 234mn customers across 19 European countries.

“This summer, roamers paid substantially less to make and receive calls than they did in 2005 and we believe roaming tariffs will carry on falling,” comments Tom Phillips, chief Government & Regulatory Affairs Officer of the GSMA. “The European mobile market is highly competitive and competition continues to drive lower prices and innovative tariff packages. However, the rigid roaming regulation proposed by the European Commission would stifle operators’ efforts to tailor new tariff packages to meet the needs of different customer groups and mobile users could be left worse off.”

We think: Viv’s probably still coming to get you.
John Williamson