Business Kroes fights for roaming charge abolition

Business Kroes fights for roaming charge abolition

2013/08/06

It seems the redoubtable Neelie Kroes, Vice President of the EU and European Commissioner for the Digital Agenda, has a fight on her hands when it comes to abolishing roaming charges.

Kroes sees the widespread adoption of mobile broadband as a boost to European prosperity and that roaming charges are hampering the spread of mobile broadband usage.

The European Parliament is seen as likely to go for abolition. The Industry, Research and Energy committee of the EU Parliament recently voted unanimously to end roaming fees by July 2015.

The snag is that Kroes needs to get the proposal to abolish the charges agreed by the European Commissioners before October in order to get the proposal before the European Parliament to be enacted into law by the middle of next year.

And at least two commissioners, Viviane Reding, the Justice Commissioner, and Algirdas Semeta, the Tax Commissioner, are said to be against the proposal.

As, of course, are the network operators. “Price regulations have become a permanent feature of the market and are hampering investments,” say the CEOs of Orange, Telefonica, Telecom Italia Spa (TIT), Deutsche Telekom AG (DTE) and others, “the current framework is not adequate to allow operators to generate sufficient cash flows to foster investments in new state-of-the-art network infrastructure.”

However Kroes is said to be offering the operators a deal. If the operators abolish roaming charges, Kroes will exempt them from a law allowing consumers to buy their roaming service from any European operator in any country.

At the moment roaming charges are capped till June 2017 at €0.24, or $0.32, per minute to make phone calls, €0.07 per minute to receive calls, €0.08 for a text, and €0.45 for every downloaded megabyte of data.

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