Date:05/07/11
Mobile operators in the European Union will be ordered to cap the costs charged to customers for using their mobiles for data services while abroad, EU digital commissioner Neelie Kroes is expected to announce Wednesday.
Such a proposal would come after the European Commission last week proposed to extend roaming caps on calls to and from abroad. The proposal must also be reviewed by the European parliament and the EU Council, which brings together heads of government for the 27 EU countries.
In a draft legislative document seen by Dow Jones Newswires, the commission says, "The roaming market is not yet competitive and further regulatory intervention is required."
Data roaming is currently only subject to a maximum safeguard cap of EUR50, but from July 1 next year it will be capped at EUR0.90 a megabyte, according to the draft. The price ceiling for data used will decrease to EUR0.70/MB in 2013 and EUR0.50/MB in 2014, and will remain at this level until June 30, 2016, when the regulation will no longer be applicable.
The EU last week said retail price caps for voice calls are set to decline to EUR0.32 a minute for outgoing calls or EUR0.11 a minute for incoming calls as of July 1, 2012. By July 2013, the caps will fall again to EUR0.28 and EUR0.10, respectively. The retail price for an SMS text message will be capped at EUR0.10 from July 1, 2012.
While the commission has set out the price caps, it will be up to the 27 EU member countries to decide on penalties applicable to companies that fail to comply. "The penalties provided for must be effective, proportionate and dissuasive," the draft document says, giving countries until March 30, 2012 to notify what the sanctions will be.
Kroes will announce the propsals in Brussels Wednesday to address "the underlying lack of competition in the markets for voice, text and data roaming," according to the commission.
"Today voice roaming prices within Europe are still more than three times the level of domestic charges," the commission's website says. "For data roaming the consumer often pays less than five cents for downloading a megabyte of data at home, but this may turn into EUR2.60/MB when downloading abroad."
European Union to cap data roaming services
Mobile operators in the European Union will be ordered to cap the costs charged to customers for using their mobiles for data services while abroad, EU digital commissioner Neelie Kroes is expected to announce Wednesday.Such a proposal would come after the European Commission last week proposed to extend roaming caps on calls to and from abroad. The proposal must also be reviewed by the European parliament and the EU Council, which brings together heads of government for the 27 EU countries.
In a draft legislative document seen by Dow Jones Newswires, the commission says, "The roaming market is not yet competitive and further regulatory intervention is required."
Data roaming is currently only subject to a maximum safeguard cap of EUR50, but from July 1 next year it will be capped at EUR0.90 a megabyte, according to the draft. The price ceiling for data used will decrease to EUR0.70/MB in 2013 and EUR0.50/MB in 2014, and will remain at this level until June 30, 2016, when the regulation will no longer be applicable.
The EU last week said retail price caps for voice calls are set to decline to EUR0.32 a minute for outgoing calls or EUR0.11 a minute for incoming calls as of July 1, 2012. By July 2013, the caps will fall again to EUR0.28 and EUR0.10, respectively. The retail price for an SMS text message will be capped at EUR0.10 from July 1, 2012.
While the commission has set out the price caps, it will be up to the 27 EU member countries to decide on penalties applicable to companies that fail to comply. "The penalties provided for must be effective, proportionate and dissuasive," the draft document says, giving countries until March 30, 2012 to notify what the sanctions will be.
Kroes will announce the propsals in Brussels Wednesday to address "the underlying lack of competition in the markets for voice, text and data roaming," according to the commission.
"Today voice roaming prices within Europe are still more than three times the level of domestic charges," the commission's website says. "For data roaming the consumer often pays less than five cents for downloading a megabyte of data at home, but this may turn into EUR2.60/MB when downloading abroad."
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