Mobile operators to challenge EU roaming law
By Dusan Belic on Saturday, December 15th, 2007 at 6:38 AM PST In General
Remember EU’s directive that limits how much mobile operators can charge for roaming? It is/was the profit killer for the high-margin businesses like mobile operators and it seemed only natural we’ll see them complaining about the decision. And they’ve just started their appeal process..
Just recently, four of the leading mobile operators in UK were given a clearance by the Londong High Court to take a challenge over the mentioned law to the European Court of Justice. According to O2 (NYSE: TEF), Vodafone (NYSE: VOD), Orange and T-Mobile (NYSE: DT), European Commissioner for telecoms Viviane Reding had no legal right to introduce the law, which forced them to cut the charges they impose on customers for calls outside their home countries. And while customers certainly benefit from the new law, the carriers’ lower margins may prevent them from expanding their businesses to other, non-European markets. As a reminder, T-Mobile has a network in the U.S. and Vodafone owns a hefty share of Verizon (NYSE: VZ) Wireless…
[Via: textually.org]
Truthfully I can’t understand why the mobile operators haven’t created more world friendly rate plans. Obviously I understand that T-Mobile in one country is a separate company from T-Mobile in another but that would prevent them from having roaming agreements for fixed roaming rates and even better world roaming rate plans. In this global market it seems like the mobile operators are missing a huge opportunity here. DT could workout roaming rates of all if it’s divisions to make the most of thier global reach.