WRITTEN QUESTION E-3030/02

by Jaime Valdivielso de Cué (PPE-DE) to the Commission

(23 October 2002)

Subject: Overpriced mobile-telephone roaming services

For some time now the Commission has been investigating the roaming services which telephone companies offer their clients when the latter travel abroad.

In particular, it is suspected that those companies are engaging in collusive practices in order to keep charges for such services artificially high.

What action is the Commission intending to take in order to outlaw such practices?

How can the Commission's investigations be speeded up with a view to ensuring that users no longer incur excessive expense?

How soon will the people of Europe be able to enjoy fairly-priced roaming services?

What compensation can be made available to the users affected?

Answer given by Mr Monti on behalf of the Commission

(3 December 2002)

The Commission began its investigations into mobile international roaming markets at the end of 1999 and carried out an in-depth inquiry into the sector. In the Working Document on the Sector Inquiry, published in December 2000 on Directorate General Competition's website(1), it was found that market concentration was high, both wholesale and retail prices were high and rising and these prices appeared to bear no relation to cost. The likely competition concerns identified were excessive pricing and collusion.

As part of the Commission's actions, it conducted in July 2001, surprise inspections at the premises of the mobile operators in Germany and the United Kingdom, where the situation appeared to be particularly serious. Since then, it has been analysing the information collected and has requested detailed information from operators and others. The Commission is looking to take concrete action in the near future but does not want at this stage to anticipate the outcome of the investigation nor the companies involved.

Since the Commission opened its inquiry, some operators have begun to offer single rate schemes, but these have been at price levels which are very high. It would therefore appear that there is still considerable scope for operators to reduce their prices significantly.

Ultimately price reductions can happen in one of three ways: the operators can lower prices themselves, the Commission can take action under the competition rules, or roaming can become subject to sector-specific regulation in each Member State. Regulation of international roaming is available as a regulatory remedy under Directive 2002/21/EC(2) (part of the new Community regulatory framework for electronic communications), in the event that national regulators find there is a lack of effective competition in the national market for international roaming services. However, at this stage it is not yet clear what measures national regulatory authorities will take to ensure that consumers using their mobile phones abroad benefit fully from a European-wide market.

(1) http://europa.eu.int/comm/competition/antitrust/others/sector_inquiries/roaming/working_document_on_initial_results.pdf.

(2) Directive 2002/21/EC of the European Parliament and of the Council of 7 March 2002 on a common regulatory framework for electronic communications networks (Framework Directive) OJ L 108, 24.4.2002.