Friday, June 14, 2013

EU Votes to End All Roaming Charges Within European Comnmunity

European Union roaming rates will drop to zero, but it isn’t clear precisely when that will happen. The move could come as early as July 1, 2014, but some do not believe the EU could move that fast, making a 2015 change more likely.


The end of mobile roaming rates within the EU is expected to hit mobile service provider revenues about two percent, though saving EU mobile users substantial money.


An end to roaming fees for voice calls, texts and internet access will effectively be completely scrapped under the proposals, which are part of a broader effort to create a single European telecom market.


 
The EU already has been lowering rates  at both the wholesale and retail levels. But the group of 27 European Commissioners reportedly has voted to make the changes before European elections in May 2014.


Some might argue the EC cannot move that fast, or would want to give European Union service providers an extra year to get ready for the revenue hits.


In large part, the move to create a single telecom market also is intended to create a better climate for industry consolidation.

And that might be the key implication. Ignoring the revenue impact of lost roaming revenues for service providers, the big outcome is expected to be a major wave of industry consolidation in the EU.

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