EU mobile broadband roaming charges to come down next summer – but not by enough, claims 3

The EU’s plans to slash mobile broadband roaming charges from next July has met with mixed reactions from the telecommunications industry with some saying the new rules are draconian and others, such as 3, saying they do not go far enough.

The measures, approved by EU telecommunications ministers yesterday, will limit the amount one operator can change another for 1Mb of data to 1 Euro. This wholesale price cap is expected to be passed on to consumers, vastly reducing the cost of accessing email and surfing the net whilst on the move abroad.

To insure against ‘bill shock’ there is also a provision that customers will be able to set their accounts to be disabled for the rest of the month should they reach a 50 Euro limit.

At the same time the cost of sending a text from within the EU will be capped to a maximum of 11 cents (9 pence).

Vivian Reding, EU Telecommunications Commissioner, pushed through the measures after her very public annoyance that telecommunications providers had not voluntarily reduced data charges of their own accord after voice roaming charges were slashed last year.  She claims that the true cost of providing a megabyte of data is 25 to 50 cents and sending a text message within the EU is just one or two cents. Hence, she argues, operators cannot complain about margins being limited by the 1 Euro per Mb wholesale limit and 11 cents per text retail cap.

Marc Allera, Sales and Marketing Director at 3 agrees but suggests those margins are actually far too big and consumers could still end up paying far more than they should for access to mobile broadband within the EU.

“The Regulation on voice roaming has helped to ensure customers can use their mobiles anywhere in the EU without fear of excessive charges. There is no reason why data cannot go the same way,” he argues.

“The recommended caps for data at €1 per MB, still favours the industry over the consumer. We believe a wholesale cap of €0.25 per MB would allow operators to start offering more affordable retail prices for their customers when they roam.”

The GSM Association, however, reacted to the EU’s price caps by claiming the “disappointing” caps which could deter investment.

Tags: 3, Mobile Broadband