By Ruth Marsden - 9th February 2012
It is high time we stopped ripping off consumers
Angelika Niebler
The EU has been urged to do more to ensure fair pricing for mobile phone users when travelling abroad.
A hearing, hosted in parliament on Wednesday by the EPP group, debated a follow-up proposal by the commission suggesting further price caps for phone calls and a cap on data roaming charges.
Angelika Niebler, EPP rapporteur for the latest Roaming III regulation, said, "90 per cent of citizens use a mobile phone. It is high time we stopped ripping off consumers."
Also chairing the public hearing, Niebler added, "It is frustrating that in the era of smartphones, consumers are still paying incredibly high rates when travelling in other EU countries."
Anthony Whelan, head of cabinet for the commission vice-president for digital agenda Neelie Kroes, called for "a sustainable and pro-competitive solution".
"An integrated solution involving price caps along with a structural solution is the answer," he said.
The current regulation means making a call from abroad cannot cost more than 35 cents per minute and 11 cents to receive a call. Sending a text message (SMS) from abroad can cost no more than 11 cents, and remains free to receive from any other EU country.
Data roaming measures for smartphone use abroad has a limit set of €50 to prevent consumers running up a huge bill.
Whelan told participants, "A valid structural solution at retail entry must be agreed to allow competition between operators and drive down prices."
EPP group coordinator for parliament's industry, research and energy committee (ITRE), Pilar del Castillo, hopes limiting the charges will make the industry more competitive.
"Companies will have to adapt to the commission's proposed structural measures, allowing consumers to be able to use another operator, different to their domestic one for roaming services abroad and the domestic one will have to make this necessary, therefore introducing competition," she said.
However, Roland Doll, vice-president of international governmental affairs at Deutsche Telekom, argued that consumers have not made use of the lower roaming measures so money has been lost from this sector.
Doll added, "The new price caps being suggested are too low and will only end up costing more in the long-term."
The commission is pushing for a significant reduction in the gap between national and roaming tariffs and supports more competition through structural change.
The new proposals would mean a voice call drops to six cents per minute, two cents for a SMS and 10 cents per MB for data by 1 July 2014. While the parliament is pushing for four cents for a call, 1 cent for an SMS and 10 cents per MB for data.
Director of European regulatory affairs for Hutchison Europe John Blakemore said, "Our objective is to achieve roaming prices close to domestic retail prices."
Hutchinson telecommunications, which operates under the '3' brand, has always taken a "consistent position on roaming, meaning a belief in data caps", Blakemore added.
Referring to the suggestion that customers using data roaming less when they go abroad, Blackmore argued, "We need an attractive product at prices consumers are willing to pay. And we need caps to support the products."
"Wholesale caps are essential to drive down wholesale prices," Blakemore said.
Monika Stajnarova, a junior economic officer for the European consumers' organisation (BEUC), told the debate, "Roaming charges need to be abolished. Consumers need lower prices and to feel confident."
She went on to say that she believes the caps being proposed are still very high, adding, "Price regulation is needed to ensure consumer protection."
The ITRE committee will vote on the latest draft regulation on 28 February.
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