DUBLIN, Ireland-When companies with international aspirations make their cases for being allowed to own mobile networks across a number of countries, one argument put forward is that pan-European operators will hasten the standardization and even reduction of roaming call charges. However, developments to date indicate subscribers are not benefiting from lower call costs.
Roaming charges have been a source of discontent in Europe for some time. The European Commission has been investigating the cost of calls made and received on foreign networks under competition rules since February 2000.
The network view that customers should pay a premium for being able to use their phones while abroad sounds disingenuous when the difference can be several hundred percent, according to a study from the International Telecommunications Users Association.
The fact that GSM Europe, the regional interest group of the GSM Association, recently outlined its vision for a code of conduct for European operators implies multinational operators are having little impact on either the cost of roaming or the clarity of the charging structures.
“This code of conduct will bring even greater clarity to the range of charging information available, and consumers will be able to make more informed decisions about the choices open to them when they roam away from their home network,” said GSM Europe Chairman Caroline van Weede.
The GSM Europe code of conduct-with no firm date set for its release-will include advice on how to disseminate information on network roaming choices, including prices available to customers. However, Eddie Murphy, an analyst with U.K. communications research firm Analysys, said there will be limited downward pressure on roaming costs until three or four truly global operators have emerged.
“Operators are more concerned with presenting a consistent level of service to their customers than reducing the cost of roaming calls-they want to maintain the current situation even though there is no justification for the high charges levied on customers making calls on foreign networks,” Murphy said.
“Roaming charges will not become a battleground until there are a number of operators with international interests,” he added, pointing to Vodafone Group and possibly Orange, as part of the France Telecom group, as the obvious examples of such global operators.
However, this could be about to change. Emma Terleske, Vodafone press spokeswoman, said the company was within weeks of making a series of major announcements that would impact its customers across the world. While she refused to reveal any specific details, the implication was customers of Vodafone’s various “partners” across Europe will have access to special roaming rates when using the networks of other partner companies.
Vodafone’s main U.K. rival, BT Cellnet, has already introduced favorable roaming rates with its recent acquisition of Esat Digifone. The “all island” tariff covers Digifone customers travelling to the United Kingdom and Northern Ireland-destinations that account for more than half of all roaming calls by Irish phone users-and the company claims it is up to 74-percent cheaper than previous tariffs. Digifone also claims it is the first deal between network operators within the same group.
Orange’s future strategy is less clear. Because of the company’s intention to float next year, it is unable to comment on any development that might affect its future profitability. A press spokesman said nothing has been decided in terms of special rates for roaming among partner networks and declined to speculate on whether that might happen.
Given the difficulties small networks already face when negotiating with the major operators, the prospect of competitors offering preferential tariffs for roaming calls is more bad news for those operators without an international presence.
