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’.
In focus
We write about
Blogroll
Disclaimer and Copyright statement
The content of all documents (and articles) contained in this blog is the sole responsibility of the author and any opinions expressed therein do not necessarily represent the official position of the European Parliament. It is addressed to the Members and staff of the EP for their parliamentary work. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the European Parliament is given prior notice and sent a copy.
For a comprehensive description of our cookie and data protection policies, please visit Terms and Conditions page.
Copyright © European Union, 2014-2023. All rights reserved.
Be the first to write a comment.