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Vodafone Agrees to Cut European Wireless Roaming Charges

2:50 am on May 9, 2006 | Category: Regulation, Telecom Services, Wireless

The worldâ€™s biggest mobile phone carrier, Vodafone Group, has agreed to cut wireless roaming charges for its European customers, due to significant pressure from European Union regulator authorities.

The average cost of network roaming on other networks within the continent will be reduced to less than â‚¬0.55 per minute, from current levels of over â‚¬0.90 per minute.

Vodafone also plans to create â€œreciprocal wholesaleâ€ agreements with other carriers, with the goal of selling wholesale voice minutes for no more than â‚¬0.45 by October 2006.

The British mobile operator is hoping that these changes will pre-empt EU regulatorsâ€™ intentions of imposing cuts on roaming charges, which many decision makers have described as excessive.

“The European Commission and European Parliament have made it clear that they expect to see change,” said Vodafone CEO, Arun Sarin, in a statement explaining the companyâ€™s actions. “By addressing both retail and wholesale prices, we are providing a platform for sustainable, lower retail prices across Europe in the future … We believe the market is the best way to meet customer needs, not regulation.”

The move has been received well by the Europeâ€™s Commissioner for Information and Media, Viviane Reding.

“This move of Vodafone is the right move in the right direction,” Reding commented at a meeting in Madrid. “I will also see if there is something in the proposal, for instance, concerning incoming calls. I’m going to be very interested to see how the Vodafone’s competitors are going to react.”

Despite the EUâ€™s regulatory pushiness, one can only hope that carriers will be willing to compromise on this issue, and ultimately offer some better deals to consumers. Such an outcome would be far favorable for all parties than a lengthy and complicated legal battle.

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