you're reading...

Estimated wholesale data costs

Estimated wholesale data costs

Estimated wholesale data costs

According to some industry analysts, the Commission’s proposed wholesale data roaming cap of €8.50 per gigabyte is higher than the domestic fully allocated retail price per gigabyte charged in 90 % of 4G data-only tariffs sold across the EU-28. They argue that if European consumers were to use, while roaming in the EU, just 60 % of their domestic gigabyte volume allowance, the wholesale data roaming cost (assuming it were €8.50 per gigabyte) would exceed half of the domestic monthly retail tariff fee in the majority of mobile data-only plans. For Nordic countries with a high consumption of mobile data, this may be particularly problematic. If wholesale charges are set too high, smaller operators could be forced to increase domestic prices and remove ‘unlimited mobile broadband’ offers from the market, so as to be able to recover their costs for providing roaming retail and wholesale services. This price-increase phenomenon is known as a ‘waterbed effect’.

« Previous

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: