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Europe mostly ends mobile roaming fees from today

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Re: Europe mostly ends mobile roaming fees from today

#131
post #123
post #38

I'm wondering why the regulation was necessary and why the free market forces didn't bring the prices or roaming down? What are the forces in telecom industry that kept the prices so high (assuming that the prices were higher then necessary)?

There are free markets and then there are free markets. There are commodity markets with many producers, many consumers and product uniformity. These can be modeled very effectively using economic theories. Barley, pork bellies, silver. There are more “normal” markets with many (or at least enough) producers & consumers and nonuniform products with sufficient substitution options. Supermarkets, building supplies, spo…

Telcom markets have a lot of these issues. That’s why highly interventionist policies have performed well relative to more “free” market setups.

Which telcom markets are you thinking about? The ones I'm familiar with are all fairly interventionist.

Re: Europe mostly ends mobile roaming fees from today

#132
post #63

This idea was good. But in reality what happened in Latvia was very simple and expected move by telcos - all three of them raised prices for all subscriptions by about 3€-4€ monthly (which is ~30% increase). Yes, now you can feel better while traveling, however everyone now pays extra every single month. For some situation now is better, while others pay for it even if they do not need such freedom. Those who are in…

However the situation is much better now. It was very common for us French people to discover a huge roaming bill after a trip in another European country. At least roaming cost are becoming predictable

Re: Europe mostly ends mobile roaming fees from today

#134
post #63

This idea was good. But in reality what happened in Latvia was very simple and expected move by telcos - all three of them raised prices for all subscriptions by about 3€-4€ monthly (which is ~30% increase). Yes, now you can feel better while traveling, however everyone now pays extra every single month. For some situation now is better, while others pay for it even if they do not need such freedom. Those who are in…

No change in France from one the main operator (Orange) (yet...)

Re: Europe mostly ends mobile roaming fees from today

#135

Earlier quoted context omitted.

Is this a recent change? I hadn't heard of such. So, e.g. Telia doesn't have to pay any roaming charge to WIND Hellas if a Telia customer from Sweden goes to Greece and connects that network? Previously I heard a cap of 7 € per gigabyte for data fees was regulated.

Charge still is regulated to 7.7EUR per GB, but that is not its cost. Cost is indeed negligible as data is mostly transferred on exactly the same networks as the rest of Internet traffic in EU and nobody sane argues that you should pay 7 EUR for each GB you transfer. If I divide my monthly internet bill with the amount of data I transfer during it, then price of GB of data transfer is indeed close to nothing.

It is a cost to my operator, and it is a cost the the EU has explicitly approved.

Re: Europe mostly ends mobile roaming fees from today

#136
post #132
post #63

This idea was good. But in reality what happened in Latvia was very simple and expected move by telcos - all three of them raised prices for all subscriptions by about 3€-4€ monthly (which is ~30% increase). Yes, now you can feel better while traveling, however everyone now pays extra every single month. For some situation now is better, while others pay for it even if they do not need such freedom. Those who are in…

However the situation is much better now. It was very common for us French people to discover a huge roaming bill after a trip in another European country. At least roaming cost are becoming predictable

Yes, because it appears the Latvians are now subsidising your roaming charges.

Re: Europe mostly ends mobile roaming fees from today

#137
post #96
post #38

I'm wondering why the regulation was necessary and why the free market forces didn't bring the prices or roaming down? What are the forces in telecom industry that kept the prices so high (assuming that the prices were higher then necessary)?

Bafflement pricing: Mobile phone plans can be monthly contracts or "pay as you go". They have pricing for texts, minutes, and data. They'll include some amount of free texting and free call minutes. Sometimes you'll get unlimited calls to people on the same carrier. Mobile roaming is for most[1] people a rare event. The average user has little idea about how much data they're actually using. These combine to make it…

Bonus Points if you provide software that updates regularly and thus uses up bandwith. Thus Telcos have a interest in Security.

Re: Europe mostly ends mobile roaming fees from today

#138
post #104

Earlier quoted context omitted.

The european antitrust should punish this behaviour!

Local antitrust agency recently told that they will look into this "synchronized pricing rise". However I really doubt that they will do anything about it.

Vodafone and O2 got fined with 20M last October for price fixing and that's not the first such fine either.

Re: Europe mostly ends mobile roaming fees from today

#139
post #70
post #40

Earlier quoted context omitted.

> If tourist movement is spread out across Europe equally It's not.

I know. Some operators will benefit slightly, some will not. And every tourist is satisfied. This is what I would call a good policy. Also there are protection plans in the policy for the extremely unlikely scenario that a company is not making a net profit.

It's not "slightly". There's a considerable imbalance.

Re: Europe mostly ends mobile roaming fees from today

#140
post #63

This idea was good. But in reality what happened in Latvia was very simple and expected move by telcos - all three of them raised prices for all subscriptions by about 3€-4€ monthly (which is ~30% increase). Yes, now you can feel better while traveling, however everyone now pays extra every single month. For some situation now is better, while others pay for it even if they do not need such freedom. Those who are in…

Latvia and Lithuania have literally the cheapest telco services in Europe. It's no surprise that we have to pay a bit more now. Yes, we lose this time, but for the rest of the Europe it's a huge win.
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