Roaming rates to be regulated in EU

[Fire14]

EU To Regulate Mobile Roaming Despite Vodafone Offer

The European Commission Monday said it would press ahead with plans to regulate mobile phone roaming costs, despite a Vodafone Group offer to slash its fees by up to 40%.

"We welcome every initiative that goes in the direction of cutting roaming charges," said commission spokesman Frederic Vincent. "But this doesn't put into question our plans."

He said the commission would go ahead and propose a regulation on roaming "before summer" that would go into effect next year.

In an effort to head off draconian European Union regulation, Vodafone earlier Monday vowed to slash its roaming charges by 40% by April 2007.

The UK-based mobile phone operator said it would cut the average cost of roaming to less than EUR0.55 per minute from more than EUR0.90. It also said, starting in October 2006, it would pay other European operators wholesale rates of no more than EUR0.45 per minute for calls within Europe.

Comission spokesman Vincent said regulators were still "analyzing" the Vodafone offer. But he noted that Vodafone was only one mobile operator, albeit the largest, and the regulation being proposed would concern all operators.

[ShoresGuy]

T-Mobile has also indicated that they will drop their roaming rates:

http://www.prepaidgsm.net/forum/inde...showtopic=1150

[Andy]

Carriers like T-Mobile and Vodafone that have networks all over Europe should charge close to nothing to have their customers from Germany roam on their network in Spain, for example. They are roaming on Vodafone's network and the price for Vodafone to forward a call of their own customer back to Germany is minimal. I've always found those high roaming rates absurd.

[scotsboyuk]

@Andy

Hear hear! Roaming on the same network should cost nothing in my opinion. Vodafone operate a system called Passport whereby the customer pays 75p per call and is then charged as if he were in the UK i.e. nothing if one has free minutes left. Of course this only applies when one is romaing on a Vodafone network.

I don't see why I should have to pay any extra at all to roam on a foriegn network owned by Vodafone, especially networks inside the EU. Any loss in profit from romaing would arguably be compensated for by people using their mobiles more when abroad. I mostyl send texts when abroad because the cost of a phone call is rather high, but I imagine I would make more phone calls if the roaming charges weren't there.

In a philosophical sense it would also be nice if there were no roaming charges at all within the EU. I can freely travel to any other EU country where I can live and work just the same as a local person without having to get a VISA or anything like that. It would be rather fitting if that same freedom also applied to communication.

[Andy]

Originally Posted by scotsboyuk

@Andy

Hear hear! Roaming on the same network should cost nothing in my opinion. Vodafone operate a system called Passport whereby the customer pays 75p per call and is then charged as if he were in the UK i.e. nothing if one has free minutes left. Of course this only applies when one is romaing on a Vodafone network.

I don't see why I should have to pay any extra at all to roam on a foriegn network owned by Vodafone, especially networks inside the EU. Any loss in profit from romaing would arguably be compensated for by people using their mobiles more when abroad. I mostyl send texts when abroad because the cost of a phone call is rather high, but I imagine I would make more phone calls if the roaming charges weren't there.

In a philosophical sense it would also be nice if there were no roaming charges at all within the EU. I can freely travel to any other EU country where I can live and work just the same as a local person without having to get a VISA or anything like that. It would be rather fitting if that same freedom also applied to communication.

I didn't know that vodafone already offered a service like that. While this is a move in the right direction, I still think that they could do better. Roaming is something very profitiable for carriers over there because a lot of people will travel to other countries a few times a year. Heck, when I lived in Germany we traveled to Switzerland, France, Italy, Spain, Austria or one of those countries every month. That's why I have prepaid Sim cards from Switzerland and Spain.

[ShoresGuy]

Vodafone Passport has been available for about a year now. I have it activated for my Vodafone UK SIM.

[Andy]

Originally Posted by ShoresGuy

Vodafone Passport has been available for about a year now. I have it activated for my Vodafone UK SIM.

Don't you have a prepay SIM in the UK?? So it works for prepay as well I assume?

[ShoresGuy]

Yep, it works for both.

[Andy]

Originally Posted by ShoresGuy

Yep, it works for both.

That wouldn't be a bad deal for your prepay card if you're out of the country. Still, I think that it should be free to roam across vodafone networks. They make enough money from the people that just use their phones in their home country that they can swallow the few cents it costs them for pass through of international calls placed on their networks.

[ShoresGuy]

I've used it a couple of times when I was in Italy. The only annoying thing is when you have a prepaid SIM with a provider who doesn't have an agreement (unlike Vodafone) to use a foreign network's refill cards to recharge your balance while abroad. With Vodafone, you can use a Vodafone Italy refill card for example to recharge a Vodafone UK prepaid SIM for example. You can also refill your prepaid SIM online.

http://online.vodafone.co.uk/dispatc...pageID=GM_0291
http://online.vodafone.co.uk/dispatc...pageID=GM_0115 (Top Up while abroad is at the bottom of the page)

Vodafone Passport Info:
http://online.vodafone.co.uk/dispatc...pageID=GM_0337

[scotsboyuk]

A network that has a global presence has a good opportunity to offer its customers a better roaming experience. If I am abroad an roaming on a Vodafone network I don't see why I should have to pay more when it is the same company. As I said before, if roaming charges were scrapped the networks would arguably make more money through increased usage. Video calls might be one area to see increased usage through cheaper prices when abroad.

[Andy]

Originally Posted by ShoresGuy

I've used it a couple of times when I was in Italy. The only annoying thing is when you have a prepaid SIM with a provider who doesn't have an agreement (unlike Vodafone) to use a foreign network's refill cards to recharge your balance while abroad. With Vodafone, you can use a Vodafone Italy refill card for example to recharge a Vodafone UK prepaid SIM for example. You can also refill your prepaid SIM online.

http://online.vodafone.co.uk/dispatc...pageID=GM_0291
http://online.vodafone.co.uk/dispatc...pageID=GM_0115 (Top Up while abroad is at the bottom of the page)

Vodafone Passport Info:
http://online.vodafone.co.uk/dispatc...pageID=GM_0337

Shoresguy,

I was still living in Germany when Vodafone introduced refilling cards in other countries with Vodafone partner networks. I did that once in Spain and it worked flawlessly. That, I think, is a great idea.

[Andy]

Originally Posted by scotsboyuk

A network that has a global presence has a good opportunity to offer its customers a better roaming experience. If I am abroad an roaming on a Vodafone network I don't see why I should have to pay more when it is the same company. As I said before, if roaming charges were scrapped the networks would arguably make more money through increased usage. Video calls might be one area to see increased usage through cheaper prices when abroad.

Carriers are now making a ton of money on roaming revenue. It costs Vodafone close to nothing to pass through a call from Vodafone in Italy back to your home in England. Same company, costs are minimal. By charging roaming Vodafone makes a TON of money. Now there's the move over there to included minute buckets like here in the States. If roaming rates were done away with people would just be using their regular minute buckets, and only if they go over would Vodafone make any money.

[ShoresGuy]

Originally Posted by Andy84094

Shoresguy,

I was still living in Germany when Vodafone introduced refilling cards in other countries with Vodafone partner networks. I did that once in Spain and it worked flawlessly. That, I think, is a great idea.

T-Mobile had the same concept for a while but discontinued it some time ago.

[scotsboyuk]

Originally Posted by Andy84094

Carriers are now making a ton of money on roaming revenue. It costs Vodafone close to nothing to pass through a call from Vodafone in Italy back to your home in England. Same company, costs are minimal. By charging roaming Vodafone makes a TON of money. Now there's the move over there to included minute buckets like here in the States. If roaming rates were done away with people would just be using their regular minute buckets, and only if they go over would Vodafone make any money.

The networks in Europe are moving away from call based revenue in my opinion. With the advent of 3G content is becoming more and more important. I don't think it will be all that long before European networks derive the majority of their income from the likes of music downloads, video downloads, etc.

Even if that were not the case, increased use of one's mobile abroad would reduce one's free minute allowance faster, thus increasing the network's profits as usage would then have to be paid for.

Incidentally, I live in Scotland or Britain, not England.