unimaginative2
Senior Member
Our cell phone companies are making ungodly profits here in Canada, where we have some of the highest rates in the world. The market doesn't seem to be doing much to push prices down. In fact, we've seen price increases with the abandonment of perks like by-the-second billing (remember that?) and flat rate local calling. Maybe the solution is actually the dreaded 'R' word: regulation.
EU cap on roaming charges shows massive savings
JAN SLIVA
Associated Press
October 4, 2007 at 12:37 PM EDT
BRUSSELS, Belgium — Mobile phone bills in Europe have been slashed by as much as 60 per cent since the EU placed a cap on roaming charges over the summer, the European Commission said.
The European Union set a price ceiling of 0.49 euros (69 cents) per minute for making a mobile phone call when abroad and 0.24 euros (34 cents) for receiving one, plus value-added tax, saying that operators were reaping massive profits from unjustifiably high roaming charges.
The so-called Eurotariff, in place since July 30, reduced phone bills for millions of Europeans.
“By Aug. 30, around 200 million EU consumers had already switched to the Eurotariff,†the commission said in a statement. It estimated more than 400 million EU citizens took advantage of the new rates by the end of September.
Mobile operators say price caps have hit their margins hard and could push up the prices of other telecom services.
Belgian national operator Belgacom SA warned that the new roaming rules will shave 23 million euros ($32.58 million), or 1 per cent, from its 2007 revenues, and 14 million euros ($19.83 million) from its total earnings before interest, tax, depreciation and amortization.
Vodafone Group PLC, the world's largest mobile phone operator by sales, said in May that the roaming regime would cost the group between 200 million and 250 million pounds this year ($400 million to $500 million).
National regulators are trying to determine if reduced roaming charges have been offset by increased rates for other services and will publish a report in December, EU Telecoms Commissioner Viviane Reding said.
Some operators seem not to have adhered to strict transparency standards, which required operators to inform customers of their right to be switched to the Eurotariff as of Aug. 30, Reding said.
Reding said she would push for similar price caps on cross-border text messaging and data transmission if operators do not reduce charges.
“If they do not respond to that appeal, we're planning to take action by late 2008,†Reding said.
Operators “know we feel the rates they charge are excessively high, and they're perfectly aware that sooner or later the European Parliament is going to ask the Commission to step in,†she said.
Reding said customers paid on average 1.10 euros ($ 1.56) per minute to make a phone call from abroad in 2006 and 0.58 euros (82 cents) per minute to receive one.
EU cap on roaming charges shows massive savings
JAN SLIVA
Associated Press
October 4, 2007 at 12:37 PM EDT
BRUSSELS, Belgium — Mobile phone bills in Europe have been slashed by as much as 60 per cent since the EU placed a cap on roaming charges over the summer, the European Commission said.
The European Union set a price ceiling of 0.49 euros (69 cents) per minute for making a mobile phone call when abroad and 0.24 euros (34 cents) for receiving one, plus value-added tax, saying that operators were reaping massive profits from unjustifiably high roaming charges.
The so-called Eurotariff, in place since July 30, reduced phone bills for millions of Europeans.
“By Aug. 30, around 200 million EU consumers had already switched to the Eurotariff,†the commission said in a statement. It estimated more than 400 million EU citizens took advantage of the new rates by the end of September.
Mobile operators say price caps have hit their margins hard and could push up the prices of other telecom services.
Belgian national operator Belgacom SA warned that the new roaming rules will shave 23 million euros ($32.58 million), or 1 per cent, from its 2007 revenues, and 14 million euros ($19.83 million) from its total earnings before interest, tax, depreciation and amortization.
Vodafone Group PLC, the world's largest mobile phone operator by sales, said in May that the roaming regime would cost the group between 200 million and 250 million pounds this year ($400 million to $500 million).
National regulators are trying to determine if reduced roaming charges have been offset by increased rates for other services and will publish a report in December, EU Telecoms Commissioner Viviane Reding said.
Some operators seem not to have adhered to strict transparency standards, which required operators to inform customers of their right to be switched to the Eurotariff as of Aug. 30, Reding said.
Reding said she would push for similar price caps on cross-border text messaging and data transmission if operators do not reduce charges.
“If they do not respond to that appeal, we're planning to take action by late 2008,†Reding said.
Operators “know we feel the rates they charge are excessively high, and they're perfectly aware that sooner or later the European Parliament is going to ask the Commission to step in,†she said.
Reding said customers paid on average 1.10 euros ($ 1.56) per minute to make a phone call from abroad in 2006 and 0.58 euros (82 cents) per minute to receive one.
