RSSNew EU Mobile Roaming Rates Active
By Nate Mook | Published July 30, 2007, 11:04 AM
The European Union on Monday put into effect new roaming rates for mobile phone users, which could save customers up to 70 percent. However, the new rates won't be automatically applied to customers until September; before then, they are opt-in.
After months of disagreements over what the roaming rates should be capped out, the EU finally passed legislation at the end of May and the measure was approved by the 27-nation bloc in early June. Customers will now be charged no more than 49 cents for making a call while roaming in the EU, and no more than 24 cents to receive a call while roaming.
The new policy took less than a year to go from idea to law, and the industry attempted to have the legislation struck down by claiming it would cut into their profit margins in an already competitive industry. As much as 18 percent of all revenues are gained from roaming charges, according to recent data.
However, lawmakers continued to press forward, and even got more than a dozen nations who voiced opposition to the policy late last year to change their minds. All 27 member states of the EU voted to pass the new roaming caps after agreeing to a middle ground on rates. The EU Parliament proposed rates of no more than 40 cents and 15 cents, while Germany suggested 60 cents and 30 cents.
What's not yet clear is if carriers will raise domestic rates -- as was threatened -- to balance the loss of revenue from roaming. Combined with regulations aimed at lowering long-distance calls between EU countries, and these carriers stand to lose billions of euros, they say.
But the EU isn't listening, instead pointing to excessive roaming rates as a problem for the bloc's citizens. A study found in one case operators were charging as much as 12 euros ($16 USD) for a four-minute call.
Roaming rates are set to drop even further as time goes on. Next year, the cap will fall to 46 cents for outgoing calls and 22 cents for incoming calls. In the third year, it will be lowered to 43 cents and 19 cents. EU regulators have promised to monitor wireless carriers to make sure they are complying with the mandated rates.
This makes me laugh.
So that all those idiots who feel unable to jet off on their hols can keep yapping from the beach, the EU has forced lowering of the cost of roaming.
To counter this, customers on pay-as-you-go or prepay tarrifs have had the cost of their LOCAL calls increased by 20%.
T-Mobile in the UK have the hilarious explanation: "To make our pay-as-you-go tarrifs easy to understand and great value, we are removing all promotions and discounts. All call costs within the UK will increase by 20%, as will text messaging costs. We remain great value, however'.
So the holiday makers can continue to talk crap from the beach while the rest of us subsidise it.
Thanks a lot.
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I'm living close to the German border and have a german girlfriend so this has been very much applauded by me. As by many others.
That all costs in the UK will increase by 20% is too bad for you. You're not subsidizing the "holiday makers" but it sounds like they subsidized you for the past years by paying far too much for something that cost only a fraction of its price.
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You cannot really talk about 'free market' here while the number of network providers is limited to few per country.
In addition, the state is there to regulate the market when the 'free market' rules do not work. The EU has given enough time for the market to regulate itself, in which they obviously failed, and it was definately time to do something about.
Ripping of people by means of excessive roaming charges so that they can keep the domestic prices low is a lame excuse.
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Over here in the Netherlands the market is very competitive with four differnt carriers (for a year ago 5 but one has been taken over) wit their own network. Than their are some which use one of those four networks. This is in a market which consists of 16 million people.
But you are right that the the market didn't regulate itself. Only the data-rates and sms-rates are still too high. But the EU-lawmakers are looking into that now.
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Ah - the wonderful and glorious EU - let's make everything equal - because we shall have no differences.
Apparently no one on the EU Parliment has heard of a free market economy - and seeks to hamstring their citizens as best as possible.
I wonder what they'll do when the carriers raise domestic rates to offset the loss - maybe we'll see the EU come out and dictate how much can be charged for that too! Wouldn't that be nice?
Hmm - I have to admit - I never went to the Soviet Union when they existed - but I do remember photos of people standing in line to buy things (like toilet paper, bread, food, etc). Were they charged for these things? Was it the same amount everywhere with in the SSR?
Our we full circle now? Back to the EU being "big brother" - I guess that George was off by two decades (give or take).
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"However, the new rates won't be automatically applied to customers until September; until they, they are opt-in."
Perhaps that should be 'until then, they'.
"After months of disagreements over what the roaming rates should be capped out, "
That either should have an 'at' just before the comma, or the 'what' should be a 'why'.
"Customers will now be charged no more than 49 cents for making a call while roaming in the EU, and no more than 24 cents to receive a call while roaming."
USD or Euro cents (I'm guessing Euro, but a little clarification would be nice)?
/Pedantic
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It was really funny... I was in Majorca (Spain) a few weeks ago and I was moaning about the charges and then Orange text me informing me of the lower rates and just as I became excited I scrolled down and it said about it not coming into force until August! My face dropped!!
Anyhow, this is great new - 49 cents is approx. 33p and 29 cents in approx. 20p(according to XE.com)!! At the moment Orange charge 70p per minute to call and 30p per minute to recieve, and texts are 30p!!
I dare bet they increase their domestic call rates to compensate and drop the amount of freebies you get with a contract!!
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