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Germany supports the Commission in its quest to bring down the prices of cross-border mobile phone calls, but the Merkel government wants more far-reaching reductions sooner.
International roaming occurs in the following instances:
In the past, high wholesale prices for roaming and profit margins have led to prices for international mobile phone calls that Informaion Society Commissioner Viviane Reding considers "not acceptable". In October 2005, the Commission found that some telecom operators charge up to 20 times the cost of a domestic phone call for cross-border calls. In November 2006, at a time when operators claimed
that roaming costs had been brought down by 22%, the Commission found that:
A recent Eurobarometer
found that, in order to avoid high costs, 15% of mobile-phone users in the EU either leave their mobile phone at home or switch it off when travelling abroad. An additional 21% use only text message services (such as SMS) when in another EU country. 63% of respondents said that they use their mobile phone less often abroad than at home. Around 150 million Europeans use their cell phone in a different EU country each year; three quarters of those are on business trips, the rest tourists.
The Commission proposed, for those reasons, on 12 July 2006, a draft new regulation
on international roaming, which proposes to cap the wholesale price on mobile- roaming services and allow no more than 30% to be passed on to the customer. The resulting retail price caps would currently be:
The Commission has now received backing from the upcoming German Presidency. On 22 November 2006, German Economy Minister Michael Glos and Europe Secretary of State Joachim Wuermeling put forward a paper for discussion by member states' permanent representatives. In this document, the two Bavarian Conservative politicians go two steps further than the Commission.
Italy, Spain and the United Kingdom are resisting the Commission's call for a cap on roaming costs. Italy and Spain are popular holiday destinations whose mobile operators make millions annually on tourist's roaming charges. Spain is also home to Telefónica
, one of the world's largest mobile-phone operators, with subsidiaries in five EU member states, including the UK and Germany. Britain houses the headquarters of Telefónica's O2
brand and is home to Vodafone, the world's largest mobile-telecommunications network company with subsidiaries, affiliates and partners in all member states except Slovakia and Lithuania.
The GSM Association
, which represents mobile phone operators throughout Europe, disputes
, based on its own research
, the Commission's figures on roaming, claiming that in fact roaming prices in Europe have decreasded by 22% between Fall 2005 and Fall 2006.