EN Official Journal of the European Union CE 78/591

(2004/C 78 E/0625)

WRITTEN QUESTION E-3564/03

by Torben Lund (PSE) to the Commission

(2 December 2003)

Subject: International telecommunication services and competition

The use of telecommunication services has increased at the same rate as internationalisation and technological advances mean that the telecommunications market is constantly changing. This creates employment, new conditions for corporate growth and more choice for consumers.

Unfortunately, many consumers feel that the mobile telephone companies' prices and range of subscriptions are not transparent or flexible and that the prices for cross-border services are unreasonably high. Competition does not take place under perfect conditions in this sector, which also means that companies dependent on telecommunication services pay unreasonably high prices for a number of essential services.

In the light of this situation, will the Commission say to what extent it is aware of problems on the European telecommunications market relating to the terms of competition, including transparency, comparability, cross-border services (e.g. roaming and the varying charges for these services) and the lack of information to consumers at both Member State and EU level? Is the Commission aware of any studies into the above problems? Does the Commission plan to ensure that subscribers using roaming are offered the ‘shortest’ or ‘cheapest’ route instead of being diverted and paying more? What steps will the Commission take to improve the terms of competition — with particular reference to transparency, comparability, cross-border services and the lack of information to consumers — for the benefit of consumers and the European economy?

Answer given by Mr Monti on behalf of the Commission

(28 January 2004)

The Commission monitors, on a regular basis, the conditions of competition prevailing in the European telecommunications market, pursuant to its role in the enforcement of Union competition rules. The Commission is indeed committed to applying such rules with determination in the telecommunications sector, especially as regards cross-border services. In particular, the Commission wishes to recall several issues of concern, notably, the level, transparency and comparability of tariffs on cross-border roaming services were identified as a result of its sector inquiry into mobile roaming, launched pursuant to Article 12 of Council Regulation No 17 (1).

Following the ensuing talks with interested parties in 2001, the Commission notes that, in general, the situation regarding consumer information across the Union has appreciably improved in several fields: most mobile network operators now charge flat tariff rates to their subscribers for roamed voice calls made in other Member States. Flat retail rates have replaced former non-transparent and unpredictable ad valorem tariffs, which virtually all Union mobile operators used to apply, and which were based on markups placed on the wholesale tariff charged by the operator on whose network foreign subscribers were roaming. Retail roaming rates are now customarily published by mobile network operators as part of their tariffs and the Commission regularly publishes Union-wide surveys of such tariffs (2).

As to the choice of a specific mobile network to roam on in a different Member State, it is widespread practice between mobile operators in the Union market to conclude preferential agreements, which may include preferential discounts. Moreover, subscribers have the ability to override the automatic programming of a foreign network proposed by their mobile operator.

As to the level of roaming tariffs charged between mobile operators at the wholesale level, the Commission is actively investigating the issue with respect to Union competition rules and refers the Honourable Member to its reply to the parliamentary question E-2689/03 by Mr Manders (3).

Over and above of the initiatives mentioned, in the absence of evidence or indications of infringements of Union rules, the Commission believes that normal competition patterns between operators should bring about benefits to consumers. This may take the form of better information and attractive specific offerings for cross-border services, among the bundle of domestic and cross-border services that one or several of the various mobile operators active in each Member State propose to their subscribers. Should specific problems of consumer awareness arise in a particular Member State, the Commission believes that the relevant National Regulatory Authority is in a position to take adequate steps.

(1) Working document on mobile roaming charges, DG Competition, December 2000, which can be found at the following Web address: http://europa.eu.int/comm/competition/antitrust/others/sector_inquiries/roaming, EEC Council: Regulation No 17: First Regulation implementing Articles 85 and 86 of the Treaty, OJ P 13, 21.2.1962.

(2) The last survey can be found at the following Web address: http://europa.eu.int/information_society/topics/telecoms/regulatory/studies/documents/tariff_report_2002_12.pdf

(3) See page 416.