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Ofcom Takes Aim At Pricey Mobile Data Roaming Charges

By Dianne See Morrison - Wed 30 Jan 2008 03:45 AM PST

Ofcom is taking aim at networks once again, this time attacking the high cost of surfing the mobile web while abroad. The UK regulator warned that while it wanted to see the industry “take the initiative on this issue,” it was prepared to resort to legislation requiring them to do so.

Ofcom CEO Ed Richards said in a speech yesterday that the high roaming charges for mobile data was a particular “obstacle to business,” noting that the average price charged by UK operators for using data roaming services within Europe last summer was £4.11 per Mb ($8.19). As the FT noted, one megabyte is the equivalent of 300 e-mails without attachments—and as Richards pointed out, a single Powerpoint presentation could cost “tens of pounds to download.” Richards also attacked the high price for sending text messages while abroad, with an average charge of a text sent from Europe costing 21 pence (42 cents) compared to an average of 5.6 pence (11 cents) per text sent within the UK.

Ofcom’s threat comes just weeks after EU telecoms commissioner Viviane Reding said she was very concerned with the high and varying prices for text messages and data roaming in Europe and vowed to “watch developments very closely and respond appropriately by the end of 2008.” Last year, Reding angered the industry when she forced European operators to reduce roaming charges for mobile phone calls. (In the same speech Richards said there was still unfinished business over this issue and that operators needed to ensure consumers were billed per second for the first minute of a phone call, and not for a full minute as is the current practice.)

Telefonica (NYSE: TEF) recently slashed the price of its mobile data roaming charges at its network operators in Europe—including O2 UK. But while SMS was capped at 32 euro cents +VAT (47 cents) and a 50 euro ($74) a month flat rate mobile data plan for business charging 1 euro ($1.48) per MB of data was introduced representing up to an 80 percent savings in some countries, Richards said the O2 price cuts weren’t low enough.

Posted in: Companies, Operators, O2, Countries, Europe, UK, Legal, Regulatory

Tags: ofcom

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mocoNews.net is a news site covering the business of mobile content.

Rafat Ali
Publisher & Co-Editor

Staci D. Kramer
Co-Editor

Tricia Duryee
Principal Correspondent

Dianne See Morrison
Contributing Writer

James Quintana Pearce
Contributing Writer

Robert Andrews
U.K. Editor

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