Roaming regulation plans up for revision

Roaming regulation plans up for revision

The European Commission has revealed that it is open to amendments of a telecoms shake-up in the region, following criticism that its proposals for wholesale costs could reduce profitability in home markets.

The Financial Times reports chief executives from a number of the largest telecoms firms will meet the EU’s digital commissioner Neelie Kroes later today, in a bid to put forward their concerns.

As part of the shake up, roaming costs for consumers will likely remain in place, while plans to reduce wholesale caps by about 40% for voice calls and 70% for data could open the rate to rivals and lower incentives to invest in networks, according to market watchers.

The confidential plans displayed an “arbitrage risk,” according to Morgan Stanley analyst Nick Delfas. In a comment to the FT he said: “An operator based in any member state, however small, could access the entire EU at these rates, having committed virtually no capital of its own.”

It is understood that Kroes is open for discussion on the European wholesale telecoms market, but will continue to support the EC’s aim to reduce roaming charges for consumers.