WRITTEN QUESTION E-2648/00

by W. G. van Velzen (PPE-DE) to the Commission

(1 August 2000)

Subject: International roaming charges for mobile telephones

In June 2000 in a resolution (A5-0258/00) the European Parliament expressed its concern at international roaming charges for mobile telephone users. The Commission had previously announced an investigation into this matter.

1. What stage has been reached in the Commission investigation into high roaming charges?

2. Can the Commission confirm that in the case of certain operators the top 5 % of international roaming clients account for 70 % of profits in this area?

3. (a) What legal measures is the Commission taking in order to reduce roaming charges, and thus costs to the public, not least in view of Parliament's resolution of 18 May 2000 (A5-0231/00) and the resolution of 13 June 2000 (A5-0258/00) (recital E, first indent) in which Parliament expresses the view that these charges are too high?

(b) When does the Commission intend to complete this work?

Answer given by Mr Monti on behalf of the Commission

(4 October 2000)

1. On 27 July 1999 the Commission opened sector inquiries into three different areas of telecommunications that are characterised by pricing anomalies: mobile roaming, leased lines, and local loop access (unbundling). The Commission notes that Parliament resolution R5-0258/00 of 13 June 2000 shares its concern that important mobile markets do not appear to be subject to effective competition. The mobile markets that are apparently not subject to effective competition are the wholesale markets for roaming and call termination, as well as the retail markets for mobile services based on these wholesale prices, and the market for mobile international calls.

For practical reasons, the three sector inquiries were launched successively. As part of the roaming sector inquiry, in January 2000 formal information requests were sent out to all mobile operators and service providers in the Community, as well as to the national authorities in all Member States (see IP/00/111 of 4 February 2000). Additional requests for information have been sent to undertakings that responded in an incomplete or incorrect manner. At present, the responses submitted to the formal information requests are being processed and analysed. Based on co-operation under the European economic area (EEA) Agreement, and on a parallel investigation carried out by the European fair trade association (EFTA) Surveillance Authority, the analysis involved will cover the entire EEA.

The Commission expects to complete its internal report on the roaming sector inquiry in October 2000. At the end of November 2000, an expert meeting will take place with national authorities to discuss the findings of the inquiry, and their follow-up.

2. The Commission cannot confirm the existence of such a ratio based on its findings so far.

3. (a) There are clear indications that the general price levels of mobile roaming rates cannot be explained on technical grounds (e.g. mobile network costs), which is one of the main reasons why the Commission decided to initiate its sector inquiry into these rates. Because the ongoing investigation is based on the Community competition rules the Commission cannot reduce roaming prices in any general or abstract sense. Instead, a determination whether particular roaming prices are in fact excessive or discriminatory must be made in individual competition cases. Any subsequent findings of infringements will have to be based on the facts found in those individual cases and cannot be prejudged.

(b) After completing its general assessment of the roaming sector inquiry findings in October, the Commission will decide on the appropriate follow up to this sector inquiry in November. However, the Commission may decide to open individual cases at any time if sufficiently grave prima facie evidence of infringements is found.