EU Plans to Ceil Roaming Charges of Mobile Phones

Delhi, Delhi India (PressExposure) April 02, 2007 -- Telecommunication ministers from European Union (EU) have agreed on a plan to trim down the roaming charges on mobile phones, said Viviane Reding, Telecommunication Commissioner, European Union on March 15, 2007. The regulated charges are expected to be implemented by the end of spring.

Ministers from 27 EU countries will convene at the annual CeBIT technology trade show conducted in Hanover. The ministers will try to reach an agreement to limit the roaming charges, i.e., the fees charged by cell phone companies on users for using their mobile phone in another EU nation.

The agreement could result in the formation of a law on maximum roaming fees to be approved in early June ’07 and would come into effect in late June or early July ’07.

Michael Glos, Economy Minister, Germany, said on March 15, 2007 in a statement reported by Forbes.com, “We are very confident that we can come to a solution”. Glos added that this action was important given the extent of roaming fees mobile companies charge on customers.

Customers will pay US$ 0.66 (€0.50) per minute at maximum, excluding VAT (Value-added Tax), once regulations are brought in, InfoWorld quoted Viviane Reding on March 15, 2007.

The Commission figures show that mobile phone companies earn around US$ 12 Billion (Euro10 Billion) annually from roaming charges in European Union.

The mobile companies allege that price-fixing would proved to be a blockage for their businesses, disrupting their delicate cost configuration, and probably increasing the charges of other calls to consumers as reimbursement.

The regulated roaming charges of mobile phones are expected to jack up the mobile phone sales. According to the RNCOS report “Europe Mobile Handset Market Analysis (2007)”, the share of Europe in worldwide mobile phone market revenue declined by 8.8% over the period 2001-2005, falling from 38.6% in 2001 to 29.8% in 2005. But in coming five years, almost all the major markets in Europe, like Germany, UK, and France, are projected to show a growth upward trend.

The market research report gives an in-depth analysis of the European mobile handset market with detailed overview of different regions in Europe. The report provides information on growth driving factors, challenges and opportunities in the European market with region-wise future predictions.

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Press Release Submitted On: March 31, 2007 at 7:11 am
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