Summary
Around 140 million EU citizens are affected by roaming
charges (charges for making and receiving mobile phone calls whilst abroad).
The House of Lords European Union Committee’s Report
‘Mobile
Phone Charges in the EU: Curbing the Excesses’ (HL 79-I) finds that these
roaming services currently lack transparency and are not sufficiently
competitive, thus presenting a significant challenge to the single market as
excessive roaming charges impact not only directly on customers but also create
barriers to small and medium enterprises operating effectively across the
EU.
Due to the cross-border nature of roaming services,
regulation is required at the European Community level and focused on the
wholesale market.
The Committee argues that a limit of 30 eurocents per
minute on the charges mobile phone networks can levy on each other should
ensure savings are passed on to consumers. The Committee also supports a
‘sunset clause’ for any new Regulation, which would mean it could be
examined again at a later stage and removed if the market were found to be
operating more effectively.
The Committee rejects regulation of retail
charges at this stage, other than the introduction of a Consumer Protection
Tariff (which would set an upper safety net rate for charges to retail
customers, in order to protect customers most vulnerable to excessive roaming
charges, i.e. those who travel infrequently) as this could harm market
competition, lead to market rigidities and create unintended consequences for
other related markets.
Found this story interesting?
Spread the news by clicking below to add it to your bookmarking
service:
How does
it affect me?
If you work in the telecommunications industry or
regularly use your mobile phone abroad, this affects you.
The Committee
backs plans for European Regulation on mobile phone roaming charges in the EU
and recommends a limit of 30 eurocents per minute on the charges mobile phone
networks levy on each other, so that savings made can be passed on to
consumers.
Lord Freeman, Chairman of the House of Lords EU Sub-Committee
on the Internal Market, said: “We support the Commission’s attempts to
protect consumers from excessive roaming charges. Up to 140 million EU citizens
use roaming facilities and it is only right they are not over-charged for doing
so."
Find out more about the
House
of Lords European Union Committee Internal Market (Sub-Committee B).