Wednesday, May 23, 2007

They would say that, wouldn't they?

The GSM Association (GSMA), the global trade association for mobile operators, believes that the proposed EU regulation of roaming services, which was approved by a vote in the European Parliament yesterday, is unnecessary, will curb competition and risks long-term harm to consumers.

It says: "The proposed price cap of 49 Euro cents per minute for outgoing calls, excluding VAT, and 24 Euro cents per minute for receiving calls will force many European mobile operators to offer roaming services at a level that leaves them no scope to compete with each other on price and on new services.

"Moreover, the proposed annual decreases in these price caps appear to be arbitrary and bear no relation to the expected evolution of roaming costs."

It's not surprising that the industry body representing GSM mobile operators and others feels that way. Roaming has been very profitable for its members. But lower mobile call costs between EC countries could help increase the productivity of European business people.

Maybe the US model of business being conducted on mobiles round the hotel pool will start to take hold. Quelle horreur!

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