OECD says competition can cut mobile broadband roaming rates

Friday, June 10th 2011
The organisation argued that increased competition will help to lower the existing high charges for international mobile data usage.
OECD says competition can cut mobile broadband roaming rates
Competition among network operators needs to be spurred if the current high price of mobile broadband is to be reduced, according to Organisation for Economic Cooperation and Development (OECD).

A new report conducted by the group of 34 countries investigated pricing structures for international mobile data usage at 68 carriers, with the authors arguing there is a "strong case" for consumer protection and empowerment guidelines to be installed.

The study said: "Current pricing levels indicate that there is, in general terms, either insufficient retail or wholesale competition."

Examining the amount charged on a variety of roaming plans to send ten photos - the equivalent of 1MB of data - it was found that the average price across OECD nations is .48 (£5.78).

Canadians face the highest penalties for using mobile broadband services overseas at .61 per MB, while the US came in second place with .06.

UK network operators were found to offer the eighth cheapest roaming rates with an average of .02 per MB, although the best value - .17 per MB - was enjoyed by Greek consumers.

Explaining the vast difference in prices, the OECD claimed Greek carriers have to shell out less for wholesale access to other networks than their Canadian counterparts.

Alternatively, the organisation argued there could simply be greater competition in the Greek market, driving down costs.

The report went on to call for the implementation of a maximum billing level for subscribers using data services while abroad.

It said: "The data roaming cut-off limit has been successful in providing protection against bill-shock. It will certainly assist in avoiding situations in which users incur a several-thousand dollar bill when returning from foreign travel."

Neelie Kroes, the European Commission's vice president for the digital agenda, is a vocal proponent of reduced roaming costs.

Last year, she told the European Telecommunications Network Operators Association that the high rates are due to "the lack of a really competitive single market for all aspects of telecoms services in Europe".

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