Proposal for a Regulation of the European Parliament and of the Council on roaming on public mobile networks within the Community and amending Directive 2002/21/EC on a common regulatory framework for electronic communications networks and services {SEC(2006) 925} {SEC(2006) 926}
Date: 2006-07-12
Institutions: European Commission
Subjects: approximation of laws, communications systems, mobile phone, regulation of telecommunications, telecommunications, transmission network

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 12.7.2006 
COM(2006) 382 final 

2006/0133 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on roaming on public mobile networks within the Community and amending Directive 
2002/21/EC on a common regulatory framework for electronic communications 
networks and services 

(presented by the Commission) 

{SEC(2006) 925} 
{SEC(2006) 926} 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

The  ability  of  customers  of  mobile  electronic  communications  services  to  use  their 
mobile  handsets  to  make  and  receive  calls  while  travelling  abroad  ('international 
roaming') is an important component of the service, and contributes to the social and 
economic  welfare  of  the  Community  as  a  whole.  However,  the  high  prices  that 
mobile  users  pay  for  this  service  has  been  identified  as  a  persistent  problem  by 
consumer organisations, regulators and policy makers across the Community. While 
a  range  of  action  has  been  taken  in  recent  years  to  address  this  issue  under  the 
existing  legal  framework,  the  tools  available  have  not  proved  effective  in  reducing 
prices  to  a  level  that  reflects  the  underlying  costs  of  providing  the  services 
concerned. 

The  objective  of  this  proposal  is  therefore  to  amend  the  existing  regulatory 
framework  for  electronic  communications  to  provide  the  necessary  legal  basis  for 
effective  and  timely  action  to  bring  about  substantial  reductions  in  the  level  of 
mobile roaming charges across the Community in a harmonised manner. This is to be 
achieved  by  applying  the  approach  that  prices  paid  by  users  of  public  mobile 
networks for roaming services when travelling within the Community should not be 
unjustifiably higher than the charges payable when calling within their home country 
(the "European Home Market Approach"). 

The  mechanism  selected  to  achieve  this  objective  in  a  proportionate  manner  is  the 
application  to  terrestrial  mobile  operators  within  the  Community  of  safeguard 
maximum price limits for the provision of roaming services for voice calls between 
Member States at retail and wholesale level. 

•  General context 

The problem of high roaming charges for mobile customers travelling in Europe was 
first  identified  in  mid-1999  when  the  Commission  decided  to  carry  out  a  sector 
inquiry  covering  national  and  international  roaming  services.  This  led  to  the 
Commission opening proceedings alleging the past infringement of Article 82 of the 
Treaty by certain mobile operators in the United Kingdom and Germany. 

International roaming was also recognised as an issue for potential ex ante regulation 
at  the  time  of  the  adoption  of  the  2002  regulatory  package  for  electronic 
communications,  through  the  identification  of  the  wholesale  national  market  for 
international 
the  Commission's 
Recommendation  of  11  February  2003  on  Relevant  Product  and  Service  Markets 
within the electronic communications sector. 

roaming  on  public  mobile  networks 

in 

The European Regulators' Group (ERG) noted in May 2005 that retail charges were 
very  high  without  clear  justification;  that  this  appeared  to  result  both  from  high 
wholesale  charges  levied  by  the  foreign  host  network  operator  and  also,  in  many 
cases,  from  high  retail  mark-ups  charged  by  the  customer's  own  network  operator; 

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that  reductions  in  wholesale  charges  were  often  not  passed  through  to  the  retail 
customer;  and  that  consumers  often  lacked  clear  information  on  the  charges  for 
roaming. 

In October 2005 the Commission drew attention to the problem of high international 
roaming  charges  and  the  lack  of  price  transparency  by  publishing  a  consumer 
information  website  that  not  only  corroborated  the  fact  that  charges  are  in  many 
cases  manifestly  excessive, but showed  a variation in prices across the Community 
that could not be justified for calls with the same characteristics. 

The  European  Parliament,  in  a  resolution  on  1  December  2005  on  European 
electronic  communications 
the 
Commission's  initiative  on  transparency  in  the  international  roaming  sector  and 
called on the Commission to develop new initiatives in order to reduce the high costs 
of cross-border mobile telephone traffic. 

regulation  and  markets  2004,  welcomed 

In  December  2005,  the  European  Regulators'  Group  alerted  the  European 
Commission to its concern that measures being taken by NRAs would not resolve the 
problem of high prices, noting that roaming creates an exceptional instance where an 
apparent case of consumer detriment is not prospectively solved by the application of 
the framework. 

In  March  2006  the  European  Council  noted  in  its  conclusions  the  importance  for 
competitiveness of reducing roaming charges, in the context of the need for focused, 
effective  and  integrated  information  and  communication  technology  (ICT)  policies 
both at European and national level, in order to achieve the renewed Lisbon Strategy 
goals of economic growth and productivity. 

While  some  operators  have  announced  plans  to  reduce  the  prices  for  international 
roaming services in response to the EU initiatives, there has been no general industry 
response  that  would  achieve  the  objectives  of  this  proposal  without  the  need  for 
regulatory  action.  In  particular  there  is  no  guarantee  that  all  international  roaming 
customers would see the benefits of lower prices envisaged by the proposal. 

This proposal therefore aims to provide a harmonised legal basis for such action that 
will facilitate the completion of the internal market for electronic communications. 

•  Existing provisions in the area of the proposal 

The  instruments  of  Community  and  national  competition  law  permit  competent 
authorities  to  sanction  anti-competitive  behaviour  by  individual  undertakings. 
However,  competition 
individual 
instruments  address 
undertakings and therefore cannot provide a solution that safeguards the interests of 
all e-communications users and market players within the Community. 

the  activities  of 

law 

The  existing  regulatory  framework  for  electronic  communications  provides  a 
mechanism  for  the  imposition  of  ex  ante  regulatory  obligations  on  undertakings 
within the electronic communications sector, on the basis of the definition of relevant 
markets  susceptible  to  ex  ante  regulation  and  a  process  of  market  analysis  by  the 
regulatory authorities. This results in the imposition of regulatory obligations where 
undertakings are found to be dominant in the relevant market. The wholesale national 

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market  for  international  roaming  on  public  mobile  networks  has  been  identified  as 
such a relevant market. On the other hand, no retail market for the provision of such 
services has been identified as a relevant market, since roaming services at the retail 
level are not purchased independently but constitute only  one element  of a broader 
retail  package.  Consequently,  due  to  the  specific  characteristics  of  the  markets  for 
international  roaming  services,  and  the  cross-border  nature  of  those  services,  it  has 
not been possible for regulators to address high prices for international roaming by 
means of these procedures. 

Arguably the Community regulatory framework may leave some scope for Member 
States  to  address  the  problems  identified  in  the  international  roaming  markets  by 
means  of  other  legislative  measures,  such  as  consumer  protection  legislation. 
However, given the cross-border nature  of international roaming services, in which 
wholesale providers are situated in Member States other than that of the consumers 
using  those  services,  any  such  legislative  action  by  Member  States  would  be 
ineffective and give rise to divergent results across the Community, in the absence of 
the harmonisation ensured by this proposal. 

The  existing  Community  regulatory  framework  (Article  19  of  the  Framework 
Directive, 2002/21/EC) provides for the Commission to issue Recommendations on 
the  harmonised  application  of  its  provisions.  However,  such  a  Recommendation  in 
this  area  would  not  be  effective,  since  it  would  not  be  legally  binding  and  the 
Member States to which it was addressed would still only have available the existing 
regulatory tools. 

The  retail  and  wholesale  roaming  markets  exhibit  unique  characteristics  which 
justify  exceptional  measures  going  beyond  the  mechanisms  otherwise  available 
under the 2002 regulatory framework. 

•  Consistency with the other policies and objectives of the Union 

This proposal is in line with the renewed Lisbon Strategy for promoting growth and 
jobs  through  greater  competitiveness  and  the  Commission's  associated  i-2010 
initiative.  The  importance  of  reducing  international  roaming  prices  within  the 
Community was explicitly recognised by the March 2006 European Council. 

2. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

Consultation methods, main sectors targeted and general profile of respondents 

The Commission services launched a two-phased consultation in early 20061. During 
the first round, general feedback on broad principles was sought. The services then 
launched a second round, with a more concrete concept for regulation as a basis for 
discussion. During  the  two  phases, 152 submissions were received from a range of 

1 

The first consultation ran from 20 February 2006 to 22 March 2006 and the second from 3 April 2006 
to 12 May 2006. The results are available on  
http://ec.europa.eu/information_society/activities/roaming/internal_market/consultation/index_en.htm  

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stakeholders including operators, NRAs, Member States, trade and user associations 
and others. 

Summary of responses and how they have been taken into account 

The consultation exercises demonstrated widespread support among Member States, 
NRAs,  consumer  groups  and  even  some  operators  for  the  Commission's  goal  of 
reducing roaming charges. While most operators opposed regulation and argued that 
the  market  is  competitive  and  that  prices  are  falling,  some  proposed  either  self-
regulation or some form of regulation. 

As a result of the submissions received, the Commission adapted its original concept 
of  the  "home  pricing  principle",  which  would  have  linked  prices  for  international 
roaming to the prices paid by roaming customers for equivalent calls made on their 
home network, to arrive at the concept of the "European Home Market Approach", 
under  which  roaming  prices  are  brought  closer  to  domestic  prices  through  the 
application  of  common  Community-wide  safeguard  maximum  price  limits,  thereby 
achieving a high level of protection for users while safeguarding competition. 

•  Collection and use of expertise 

There was no need for external expertise other than the input from interested parties 
provided in the context of the public consultation. 

•  Impact assessment 

The impact assessment for this proposal examined the following range of options: no 
policy change, self-regulation, co-regulation, soft law and targeted regulation. 

'No policy change' would involve relying on market and technological developments 
to  solve  the  problem  while  continuing  to  use  existing  regulatory  tools  and 
competition law remedies. It may be noted that national regulatory authorities have 
already  indicated  that  existing  regulatory  tools  are  insufficient  to  address  this 
problem. 

Self-regulation  and  co-regulation  were  also  considered,  although  to  date  there  has 
been  no  general  industry  initiative  to  propose  such  measures.  The  risk  of  certain 
consumers being left with extremely high charges even though average prices might 
fall could undermine the overall objective of such approaches. 

The option of tackling the issue on the basis of recommendations or other soft law 
was  also  analysed.  However,  given  the  structural  nature  of  the  problem  of  high 
consumer prices for international roaming and the fact that existing provisions in the 
Community regulatory framework for electronic communications have proved to be 
insufficient to resolve the problem, it was apparent that initiatives that did not alter 
the legal framework for remedial action would not achieve the desired objectives. 

Within  the  broad  option  of  targeted  regulation,  three  different  approaches  were 
analysed:  wholesale  regulation  alone,  retail  regulation  alone  and  a  combination  of 
wholesale and retail regulation. 

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Imposing  regulation  at  wholesale  level  only  would  remedy  the  problem  of  high 
charges  between  operators  but  would  not  guarantee  that  lower  wholesale  prices 
would be passed through to retail roaming customers, given the lack of competitive 
pressures  on  operators  to  do  so.  The  objective  of  substantial  reductions  in  retail 
prices for European roaming customers would therefore not be ensured. 

Retail regulation alone was also considered, given  that it would tackle the problem 
directly.  However,  in  leaving  wholesale  regulation  to  one  side  such  an  approach 
might subject smaller operators to price squeeze, leading to large-scale cessation of 
service. 

Finally, a combination of wholesale and retail regulation was examined, in a number 
of  variations.  The  conclusion  of  the  impact  assessment  was  that  such  a  combined 
approach to wholesale and retail regulation, involving the establishment of common 
Community-wide maximum safeguard price limits at both wholesale and retail level, 
provides the optimum solution. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

The  proposal  provides  for  the  establishment,  on  the  basis  of  the  'European  Home 
Market  Approach’,  of  common,  Community-wide  maximum  price  limits  on  the 
charges  that  mobile  network  operators  may  levy  for  the  wholesale  provision  of 
mobile  roaming  services  for  mobile  voice  telephony  calls  made  from  a  visited 
network  in  the  Community  and  terminating  on  a  public  telephone  network  also 
located within the Community. 

The maximum price limits take account of the differences in the underlying costs of 
providing  international  roaming  services  for  calls  made  to  a  destination  within  a 
visited  country,  on  the  one  hand,  and  calls  made  back  home  or  to  a  third  country 
within  the  Community,  on  the  other.  The  proposal  therefore  provides  for  a  lower 
wholesale  price  limit  for  the  former  category  of  calls  (set  at  twice  the  Community 
average mobile termination rate for mobile network operators  designated as having 
significant market power) and a higher price limit for the latter category (set at three 
times the Community average mobile termination rate for such operators). 

In order to ensure that there is no price squeeze in the provision of mobile roaming 
services  at  retail  level,  the  proposal  also  provides  for  safeguard  price  limits  at  the 
retail  level  for  the  same  categories  of  roaming  call,  set  at  130%  of  the  applicable 
wholesale limit.  

In  accordance  with  the  ‘European  Home  Market  Approach’  and  in  order  to  ensure 
that charges payable by roaming customers for receiving calls while roaming abroad 
in the Community more closely reflect the underlying costs incurred by their home 
mobile  provider  in  providing  this  service,  the  proposal  also  provides  that  those 
charges should not exceed a maximum price limit. 

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The  price  limits  provided  with  regard  to  the  retail  charges  for  the  making  of 
regulated roaming calls will take effect as a matter of law six months after the entry 
into force of the proposed measure. 

The  proposal  promotes  transparency  for  retail  charges  by  introducing  an  obligation 
on  mobile  providers  to  give  personalised  information  on  retail  roaming  charges  to 
their  roaming  customers  on  request  and  free  of  charge.  Each  customer  may  choose 
whether to receive the information by means of an SMS (Short Message Service) or 
orally over their mobile telephone. In addition, mobile providers are obliged to give 
information on roaming charges when subscriptions are taken out, on a periodic basis 
and when there are substantial changes to roaming charges. 

The proposal also gives national regulatory authorities the power and responsibility 
to  enforce  compliance,  in  line  with  their  existing  roles  under  the  Community 
regulatory framework for electronic communications. It also gives them the task of 
monitoring  developments  in  retail  and  wholesale  prices  for  the  provision  of  voice 
and  data  communications  services,  including  SMS  (Short  Message  Service)  and 
MMS  (Multimedia  Message  Service),  to  mobile  customers  when  roaming  in  the 
Community. 

Finally,  the  proposal  amends  the  provisions  of  the  existing  regulatory  framework, 
notably  the  Framework  Directive  (2002/21/EC),  to  recognise  the  specific  status  of 
the measures contained in the proposal within that framework and to ensure that the 
general provisions of the framework continue to apply to roaming services regulated 
by the proposal (subject to its specific requirements). 

•  Legal basis 

Article 95 EC 

•  Subsidiarity principle 

The  subsidiarity  principle  applies  insofar  as  the  proposal  does  not  fall  under  the 
exclusive competence of the Community. 

In  view  of  the  specific  cross-border  nature  of  the  roaming  services  covered  by  the 
proposed  action,  by  virtue  of  which  the  operators  providing  wholesale  roaming 
services  are  located  in  Member  States  other  than  that  of  the  customer's  home 
operator, and of the fact that the proposed action requires amendment of the existing 
Community  regulatory  framework,  action  by  Member  States  alone  would  not  be 
sufficient or capable of achieving the objectives of the proposal. 

Action by Member State alone to address the problem covered by this proposal could 
risk raising issues of conformity with the existing Community regulatory framework 
(if  left  unamended)  and/or  lead  to  divergent  results,  thereby  jeopardising  the 
achievement of the internal market. 

Since  the  provision  of  mobile  roaming  services  within  the  Community  by  its  very 
nature affects all Member States and touches on the  interests of parties in different 
Member  States  simultaneously,  a  harmonised  approach  at  Community  level  is 

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essential  to  guarantee  consistency  of  application  and  ensure  that  the  interests  of 
consumers and undertakings in all Member States are safeguarded. 

Since  the  proposed  action  requires  the  amendment  of  the  existing  Community 
regulatory  framework  for  electronic  communications  and  the  establishment  of 
common  safeguards  for  mobile  users  and  operators  on  a  non-discriminatory  basis 
across  the  Community,  the  objectives  of  this  proposal  cannot  be  achieved  by  the 
Member  States  in  a  secure,  harmonised  and  timely  manner  and  can  therefore  be 
better achieved by the Community. 

The proposal therefore complies with the subsidiarity principle. 

•  Proportionality principle 

The  regulatory  action  opted  for  in  this  proposal  involves  the  least  amount  of 
interference possible in the commercial behaviour of the undertakings affected. The 
setting of safeguard maximum price limits at wholesale and retail levels ensures the 
minimum distortion of competitive conditions consistent with the objectives, since it 
preserves the freedom of operators to compete and differentiate their offerings within 
the  safeguard  limits  provided.  Of  all  the  regulatory  options  considered,  it  also 
presents the least risk of creating distortion in related but separate markets for mobile 
services,  whether  at  retail  or  wholesale  level.  The  proposed  action  also  leaves  the 
task of monitoring and enforcing compliance to the regulatory authorities responsible 
for  electronic  communications  in  each  Member  State,  since  they  are  closest  to  the 
markets and operators concerned. 

Due to the simplicity of the mechanism to be established by the proposal and the fact 
that  it  will  apply  directly  within  the  Community  by  virtue  of  its  status  as  a 
Regulation,  the  administrative  and  financial  burden  on  the  Community,  national 
governments  and  authorities  will  be  minimised.  There  will  be  no  need  for 
transposition or extensive implementation of its requirements within national law and 
the  process  of  monitoring  compliance  will  fall  within  the  normal  activities  of 
national  regulatory  authorities.  Indeed  the  proposal  will  lighten  the  administrative 
burden  on  national  regulators  in  as  much  as  it  will  remove  the  need  for  those 
authorities  periodically  to  analyse  and  review  the  national  wholesale  market  for 
international roaming on public mobile networks within their territory. 

•  Choice of instruments 

Proposed instrument: regulation. 

The  urgency  and  persistence  of  the  problem  identified  requires  a  simple,  effective 
and  timely  solution  for  the  European  consumer,  applied  in  a  harmonised  manner 
across  the  Community  and  without  the  need  for  transposition  or  extensive 
implementation at national level. Such a national implementation process would be 
likely to significantly delay the effect of the measure in some Member States, with 
the  result  of  distorting  the  competitive  conditions  for  mobile  operators  in  different 
Member  States.  A  Regulation  is  therefore  the  only  instrument  that  will  achieve  the 
desired objective. 

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4. 

BUDGETARY IMPLICATION 

The proposal has no implication for the Community budget. 

5. 

ADDITIONAL INFORMATION 

•  Simplification 

The proposal will create legal certainty for mobile users and market players alike, by 
replacing  the  existing  mechanisms  under  the  regulatory  framework,  which  are  of 
uncertain  application  to  international  roaming  services  for  voice  telephony,  with  a 
simple mechanism that is transparent and predictable for all concerned. 

The proposal will remove the requirement for national regulatory authorities to carry 
out extensive and complex data gathering for the purposes of analysing the wholesale 
national market for international roaming on public mobile networks and obviates the 
need  for  national  governments  and  authorities  to  expend  resources  in  seeking 
alternative solutions and strategies at national level. 

Since it provides for a simple and transparent price limit for regulated roaming calls, 
the  proposed  action  will  not  impose  significant  administrative  burdens  on 
undertakings  or  other  interested  parties.  Indeed,  by  removing  the  need  for  national 
authorities to carry out analyses of the wholesale market for international roaming, it 
will  also  lighten  the  burden  of  the  periodic  data  collection  and  consultation 
procedures  required  by  the  market  review  process.  The  data  required  for  the 
application  of  the  proposal  are  of  a  kind  already  produced  by  operators  and  will 
therefore not entail an increased burden. 

•  Review/revision/sunset clause 

The proposal provides for a review of the Regulation after two years. This means that 
if at that time market developments show that the Regulation is no longer required, 
the  Commission  will  consider  proposing  its  repeal,  in  line  with  the  principles  of 
better regulation. 

•  European Economic Area 

The  proposed  act  concerns  an  EEA  matter  and  should  therefore  extend  to  the 
European Economic Area. 

•  Detailed explanation of the proposal 

Article 1 sets out the aim and scope of the Regulation: introduction of the European 
Home  Market  Approach  for  users  of  public  mobile  telephone  networks  for 
international  roaming  voice  services  when  travelling  within  the  Community.  The 
European  Home  Market  Approach  aims  to  achieve  a  high  level  of  protection  for 
these users by setting a maximum limit on the wholesale and retail prices that may be 
levied  by  mobile  operators  for  international  roaming  services  provided  within  the 
Community. 

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Article  2  sets  out  the  definitions  for  the  Regulation.  ‘Home  provider’,  ‘home 
network’, ‘international roaming’, ‘regulated roaming call’, ‘roaming customer’ and 
‘visited network’ are the key new definitions. 

Article 3 sets the maximum limits for the prices levied by mobile network operators 
for  the  provision  of  regulated  roaming  calls  at  wholesale  level.  The  maximum 
wholesale  charge  applicable  to  regulated  roaming  calls  made  to  the  roaming 
customer's home country or a third country within the Community is three times the 
average  mobile  termination  rate  while  the  maximum  wholesale  charge  for  the 
provision  of  regulated  roaming  calls  to  a  destination  within  the  visited  country  is 
twice the average mobile termination rate.  

Article 4 sets the maximum limits on the prices that can be charged at retail level by 
the  home  mobile  provider  for  a  regulated  roaming  call.  This  is  130%  of  the 
applicable maximum wholesale charge for that call (excluding VAT). 

Article  5  provides  that  the  retail  price  limits  in  Articles  4  will  take  effect  after  six 
months. 

Article 6 sets the maximum limits on the retail price that the home mobile provider 
can  charge  its  roaming  customer  for  the  receipt  of  calls  while  roaming  within  the 
Community. This is 130% of the average mobile termination rate published pursuant 
to Article 10 (excluding VAT). 

Article 7 provides for improved transparency for retail roaming charges, by obliging 
the  home  provider  to  give  its  roaming  customers  information  on  these  charges  on 
request  and  free  of  charge,  either  by  means  of  a  Short  Message  Service  (SMS)  or 
orally. In addition, improved transparency is obtained by asking the home provider to 
furnish  information  on  roaming  charges  when  subscriptions  are  taken  out,  on  a 
periodic basis and in case of substantial changes. 

Article  8  sets  out  the  powers  and  obligations  of  national  regulatory  authorities  to 
supervise and enforce compliance with the Regulation within their territory.  

Article  9  requires  Member  States  to  lay  down  rules  on  the  penalties  which  should 
apply to breaches of the Regulation.  

Article  10  sets  out  the  rules  governing  the  determination  and  publication  of  the 
average  mobile  termination  rate  used  for  calculating  the  maximum  price  limits  in 
Articles 3 and 6.  

Article 11 introduces the necessary amendment to the Framework Directive in order 
to  ensure  the  coherent  application  of  the  directives  making  up  the  regulatory 
framework and the Regulation itself. 

Article 12 sets the time-limit for review of the Regulation. 

Article  13  provides  that  the  Commission  shall  be  assisted  by  the  Communications 
Committee set up under the Framework Directive. 

Article 14 requires Member States to notify to the Commission the identity of their 
national regulatory authorities charged with carrying out tasks under the Regulation. 

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Article 15 provides for measures needed to implement the Regulation to be adopted 
pursuant to the Committee procedure referred to in Article 13. 

Article 16 provides that the Regulation will enter into force on the day following the 
date of its publication in the Official Journal of the European Union. 

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2006/0133 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on roaming on public mobile networks within the Community and amending Directive 
2002/21/EC on a common regulatory framework for electronic communications 
networks and services 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
95 thereof, 

Having regard to the proposal from the Commission2, 

Having regard to the opinion of the European Economic and Social Committee3, 

Acting in accordance with the procedure laid down in Article 251 of the Treaty4, 

Whereas: 

(1) 

The  high  level  of  the  prices  payable  by  users  of  public  mobile  telephone  networks 
when using their mobile telephones when travelling abroad within the Community is a 
matter of concern for national regulatory authorities. The European Regulators Group5 
noted at its plenary meeting in May 2005 (inter alia) that retail charges were very high 
without  clear  justification;  that  this  appeared  to  result  both  from  high  wholesale 
charges levied by the foreign host network operator and also, in many cases, from high 
retail  mark-ups  charged  by  the  customer’s  own  network  operator;  that  reductions  in 
wholesale charges were often not passed through to the retail customer; and that there 
were strong linkages between the markets in the different Member States. 

(2) 

Directive of the European Parliament and of the Council 2002/21/EC of 7 March 2002 
on  a  common  regulatory  framework  for  electronic  communications  networks  and 
services  (Framework  Directive)6;  Directive  2002/19/EC  of  the  European  Parliament 
and  of  the  Council  of  7 March  2002  on  access  to,  and  interconnection  of,  electronic 

2 
3 
4 
5 

6 

OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
See Commission Decision 2002/627/EC of 29 July 2002 establishing the European Regulators Group 
for  Electronic  Communications  Networks  and  Services  (OJ  L  200,  30.7.2002,  p.  38),  as  amended  by 
Commission Decision 2004/641/EC of 14 September 2004 (OJ L 293, 16.9.2004, p. 30). 
OJ L 108 of 24.4.2002, p 33. 

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12 

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communications  networks  and  associated  facilities  (Access  Directive)7;  Directive 
2002/20/EC  of  the  European  Parliament  and  of  the  Council  of  7 March  2002  on  the 
authorisation  of  electronic  communications  networks  and  services  (Authorisation 
Directive)8; Directive 2002/22/EC of the European Parliament and of the Council of 7 
to  electronic 
March  2002  on  universal  service  and  users'  rights  relating 
communications  networks  and  services  (Universal  Service  Directive)9;  and  Directive 
2002/58/EC  of  the  European  Parliament  and  of  the  Council  of  12  July  2002 
concerning  the  processing  of  personal  data  and  the  protection  of  privacy  in  the 
electronic  communications  sector10,  together  “the  2002  regulatory  framework  for 
electronic  communications”,  aimed  at  creating  an  internal  market  for  electronic 
communications  within  the  Community  while  ensuring  a  high  level  of  consumer 
protection through enhanced competition. 

The 2002 regulatory framework for electronic communications draws on the principle 
that ex ante regulatory obligations should only be imposed where there is not effective 
competition,  providing11  for  a  process  of  periodic  market  analysis  and  review  of 
obligations  by  national  regulatory  authorities,  leading  to  the  imposition  of  ex  ante 
obligations on operators designated as having significant market power. The elements 
constituting this process include the definition of relevant markets in accordance with 
the  Commission’s  Recommendation  of  11  February  2003  on  relevant  product  and 
service markets within the electronic communications sector12 (the Recommendation), 
the analysis of the defined markets in accordance with the Commission’s Guidelines13, 
the  designation  of  operators  with  significant  market  power  and  the  imposition  of  ex 
ante obligations on operators so designated. 

the  work  undertaken  by 

The Recommendation identifies as a relevant market susceptible to ex ante regulation 
the wholesale national market for international roaming on public mobile networks14. 
However, 
the  national  regulatory  authorities  (both 
individually  and  in  the  European  Regulators  Group)  in  analysing  the  wholesale 
national  markets  for  international  roaming  has  demonstrated  that  it  has  not  yet  been 
possible  for  a  national  regulatory  authority  to  address  effectively  the  high  level  of 
wholesale  international  roaming  charges  because  of  the  difficulty  in  identifying 
undertakings  with  significant  market  power  in  view  of  the  specific  circumstances  of 
international roaming, including its cross-border nature. 

(3) 

(4) 

(5) 

As regards the retail provision of international roaming services on the other hand, the 
Recommendation  does  not  identify  any  retail  market  for  international  roaming  as  a 

7 
8 
9 
10 
11 

12 

13 

14 

OJ L 108 of 24.4.2002, p. 7. 
OJ L 108 of 24.4.2002, p. 21. 
OJ L 108 of 24.4.2002, p. 51. 
OJ L 201 of 31.7.2002, p. 37. 
See in particular Articles 14 to 16 of the Framework Directive, Articles 7 and 8 of the Access Directive 
and Articles 16 and 17 of the Universal Service Directive. 
Commission Recommendation of 11 February 2003 on relevant product and service markets within the 
electronic  communications  sector  susceptible  to  ex  ante  regulation  in  accordance  with  Directive 
2002/21/EC  of  the  European  Parliament  and  of  the  Council  on  a  common  regulatory  framework  for 
electronic communication networks and services - C(2003) 497 (OJ L 114, 8.5.2003, p. 45). 
Commission  guidelines  on  market  analysis  and  the  assessment  of  significant  market  power  under  the 
Community  regulatory  framework  for  electronic  communications  networks  and  services  (OJ  C  165, 
11.7.2002, p. 6). 
Market 17 in the Annex. 

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13 

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(6) 

(7) 

(8) 

(9) 

relevant  market,  due  (among  other  things)  to  the  fact  that  international  roaming 
services at retail level are not purchased independently but constitute only one element 
of a broader retail package purchased by customers from their home provider. 

In  addition,  the  national  regulatory  authorities  responsible  for  safeguarding  and 
promoting the interests of mobile customers normally resident within their territory are 
not  able  to  control  the  behaviour  of  the  operators  of  the  visited  network,  situated  in 
other  Member  States,  on  whom  those  customers  depend  when  using  international 
roaming  services.  This  limitation  would  also  diminish  the  effectiveness  of  measures 
taken  by  Member  States  based  on  their  residual  competence  to  adopt  consumer 
protection rules. 

Accordingly, there is pressure for Member States to take measures to address the level 
of  international  roaming  charges,  but  the  mechanism  for  ex  ante  regulatory 
intervention  by  national  regulatory  authorities  provided  by  the  2002  regulatory 
framework  for  electronic  communications  has  not  proved  sufficient  to  enable  those 
authorities to act decisively in the consumers’ interest in this specific area.  

Furthermore, the European Parliament’s resolution of 1 December 2005 on European 
electronic communications regulation and markets 200415 called on the Commission to 
develop  new  initiatives  to  reduce  the  high  costs  of  cross-border  mobile  telephone 
traffic,  while  the  European  Council  of  23-24  March  2006  concluded  that  focused, 
effective  and  integrated  information  and  communication  technology  (ICT)  policies 
both  at  European  and  national  level  are  essential  to  achieving  the  renewed  Lisbon 
Strategy's16  goals  of  economic  growth  and  productivity  and  noted  in  this  context  the 
importance for competitiveness of reducing roaming charges. 

Although the 2002 regulatory framework for electronic communications, on the basis 
of  considerations  apparent  at  that  time,  provided  for  the  removal  of  all  obstacles  to 
trade  in  the  area  that  it  harmonises,  that  fact  cannot  prevent  the  adaptation  of  the 
harmonised rules in step with other considerations in order to find the most effective 
means  of  achieving  a  high  level  of  consumer  protection  whilst  improving  the 
conditions for the functioning of the internal market. 

(10) 

It  is  therefore  necessary  to  amend  the  2002  regulatory  framework  for  electronic 
communications to allow for a departure from the rules otherwise applicable, namely 
that prices for service offerings should be determined by commercial agreement in the 
absence of significant market power, and thereby to accommodate the introduction of 
complementary  regulatory  obligations  which  reflect  the  specific  characteristics  of 
international roaming services. 

(11)  The retail and wholesale roaming markets exhibit unique characteristics which justify 
exceptional measures which go beyond the mechanisms otherwise available under the 
2002 regulatory framework. 

15 
16 

EP Resolution 2005/2052(INI). 
Communication to the Spring European Council, Working together for growth and jobs, A new start for 
the Lisbon Strategy - COM(2005) 24, 2.2.2005 - and European Council Presidency Conclusions 22-23 
March 2005. 

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14 

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(12)  Regulatory obligations should be imposed at both retail and wholesale level to protect 
the  interests  of  roaming  customers,  since  experience  has  shown  that  reductions  in 
wholesale prices for international roaming services may not be reflected in lower retail 
prices for roaming, due to the absence of incentives to do so. On the other hand, action 
to reduce the level of retail prices without addressing the level of the wholesale costs 
associated  with  the  provision  of  these  services  could  risk  disrupting  the  orderly 
functioning of the international roaming market. 

(13)  The  resulting  obligations  should  take  effect  as  soon  as  possible,  while  providing  the 
operators  concerned  with  a  reasonable  period  to  adapt  their  prices  and  service 
offerings to ensure compliance, and apply directly in all Member States. 

(14)  A common mechanism, to be called the European Home Market Approach, should be 
employed for ensuring that users of public mobile telephone networks when travelling 
within  the  Community  do  not  pay  excessive  prices  for  international  roaming  voice 
services when making calls or receiving voice calls, thereby achieving a high level of 
consumer  protection  while  safeguarding  competition  between  mobile  operators.  In 
view  of  the  cross-border  nature  of  the  services  concerned,  a  common  mechanism  is 
needed so that mobile operators are faced with a single coherent regulatory framework 
based on objectively established criteria. 

(15)  The most effective and proportionate mechanism for regulating the level of prices for 
making international roaming calls in accordance with the above considerations is the 
setting  at  Community  level  of  maximum  per-minute  charges  at  both  retail  and 
wholesale level. 

(16)  This  common  mechanism  should  ensure  that  retail  charges  for  international  roaming 
provide a more reasonable reflection of the underlying costs involved in the provision 
of the service than has been the case whilst allowing operators the freedom to compete 
by  differentiating  their  offerings  and  adapting  their  pricing  structures  to  market 
conditions and consumer preference. 

(17)  The  common  mechanism  should  be  simple  to  implement  and  monitor  in  order  to 
minimise  the  administrative  burden  both  for  the  operators  which  are  affected  by  its 
requirements  and  for  the  national  regulatory  authorities  charged  with  its  supervision 
and enforcement.  

(18)  The maximum  price  limits  should take account of the different elements  involved  in 
the  making  of  an  international  roaming  call  (including  overheads,  signalling,  call 
origination,  transit  and  termination)  and  the  differences  in  the  underlying  costs  of 
providing  international  roaming  services  in  respect  of  calls  made  to  a  destination 
within  a  visited  country,  on  the  one  hand,  and  calls  made  back  to  the  roaming 
customer’s home country or a third country within the Community, on the other.  

(19)  The  maximum  price  limit  for  the  provision  of  an  international  roaming  call  at 
wholesale level should be based on the average per-minute mobile termination rate for 
operators  with  significant  market  power,  as  such  termination  rates  are  already  the 
subject  of  regulatory  supervision  in  accordance  with  the  2002  regulatory  framework 
for electronic communications and, therefore, should be determined by reference to the 
principle  of  cost-orientation.  Given  the  characteristics  of  the  market  for  call 
termination  on  individual  public  mobile  networks  and  the  cross-border  nature  of 

EN 

15 

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international  roaming,  they  also  provide  a  stable  basis  for  regulation  that  is 
representative  of  the  cost  structures  of  mobile  networks  across  the  Community.  The 
average  mobile  termination  rate  provides  a  reliable  benchmark  for  the  core  cost 
components  at  wholesale  level  and  a  maximum  wholesale  price  limit  based  on  an 
appropriate  multiple  of  such  an  average  mobile  termination  rate  should  therefore 
provide an assurance that the real costs of provision of regulated roaming services can 
be recovered. 

(20)  The maximum price limit applicable at retail level should provide roaming customers 
with  the  assurance  that  they  will  not  be  charged  an  excessive  price  when  making  a 
regulated  roaming  call,  whilst  leaving  the  home  operators  sufficient  margin  to 
differentiate the products they offer to customers.  

(21)  Providers  of  international  roaming  services  for  calls  made  while  roaming  abroad  as 
covered  by  this  Regulation  should  have  a  period  within  which  to  adjust  their  retail 
prices voluntarily to comply with the maximum limits provided in this Regulation. It is 
appropriate to allow a period of six months for this purpose, to permit market players 
to make the necessary adaptations.  

(22)  Similarly,  a  maximum  limit  should  be  applied  to  the  prices  that  roaming  customers 
may be required to pay for the receipt of voice telephony calls while roaming abroad 
within the Community in order to ensure that those prices more closely reflect the cost 
of  the  provision  of  such  a  service,  and  to  give  customers  greater  certainty  as  to  the 
charges they will incur when answering their mobile phone abroad.  

(23)  This  Regulation  should  not  prejudice  innovative  offerings  to  consumers  which  are 

more favourable than the maximum per minute charges contained in this Regulation.  

(24)  The  pricing  requirements  in  this  Regulation  should  apply  regardless  of  whether 
roaming customers have a pre-paid or a post-paid contract with their home provider, to 
ensure that all users of mobile voice telephony may benefit from its provisions.  

(25)  The  average  mobile  termination  rate  for  the  purposes  of  this  Regulation  should  be 
based on the information provided by the national regulatory authorities and published 
by the Commission on a periodical basis. Operators subject to obligations under this 
Regulation should be given a reasonable time within which to ensure that their prices 
remain within the maximum limits as modified by such publication.  

(26) 

In order to improve the transparency of retail prices for making and receiving roaming 
calls within the Community and to help roaming customers make decisions on the use 
of  their  mobile  telephones  while  abroad,  providers  of  mobile  telephony  services 
should  enable  their  roaming  customers  easily  to  obtain  information  on  the  roaming 
charges applicable to them in the visited Member State concerned, on request and free 
of  charge.  Transparency  also  requires  that  providers  furnish  information  on  roaming 
charges  when  subscriptions  are  taken  out  and  that  they  also  give  their  customers 
periodic updates on roaming charges as well as in the event of substantial changes. 

(27)  The national regulatory authorities which are responsible for carrying out tasks under 
the 2002 regulatory framework for electronic communications should have the powers 
needed  to  supervise  and  enforce  the  obligations  in  this  Regulation  within  their 
territory.  They  should  also  monitor  developments  in  the  pricing  of  voice  and  data 

EN 

16 

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services  for  mobile  customers  when  roaming  within  the  Community,  in  particular  as 
regards the specific costs related to roaming calls made in the outermost regions of the 
Community and the necessity  to ensure that these costs can be adequately recovered 
on  the  wholesale  market.  They  should  ensure  that  up-to-date  information  on  the 
application of this Regulation is made available to mobile users.  

(28)  Member States should provide for a system of sanctions to be applied in the event of 

breach of the provisions of this Regulation. 

(29)  The measures necessary for the implementation of this Regulation should be adopted 
in  accordance  with  Council  Decision 1999/468/EC  of  28 June 1999  laying  down  the 
procedures for the exercise of implementing powers conferred on the Commission17. 

(30)  Since the objectives of the proposed action, to establish a common mechanism to ensure 
that users of public mobile telephone networks when travelling within the Community 
do  not  pay  excessive  prices  for  international  roaming  services  when  making  or 
receiving  voice  calls,  thereby  achieving  a  high  level  of  consumer  protection  while 
safeguarding  competition  between  mobile  operators,  cannot  be  achieved  by  the 
Member  States in  a  secure,  harmonised  and  timely  manner  and  can  therefore  be  better 
achieved at Community level, the Community may adopt measures, in accordance with 
the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the 
principle  of  proportionality,  as  set  out  in  the  same  Article,  this Regulation  does  not  go 
beyond what is necessary in order to achieve those objectives.  

(31)  This Regulation should be reviewed no later than two years after its entry into force, to 
ensure  that  it  remains  necessary  and  appropriate  to  the  conditions  prevailing  in  the 
electronic communications market at the time,  

HAVE ADOPTED THIS REGULATION: 

Article 1 

Subject matter and Scope 

1. 

This  Regulation  introduces  a  common  mechanism,  called  the  European  Home 
Market Approach, for ensuring that users of public mobile telephone networks when 
travelling  within  the  Community  do  not  pay  excessive  prices  for  international 
roaming  services  when  making  calls  and  receiving  calls,  thereby  achieving  a  high 
level  of  consumer  protection  while  safeguarding  competition  between  mobile 
operators. It lays down rules on the charges that may be levied by mobile operators 
for  the  provision  of  international  roaming  services  for  voice  calls  originating  and 
terminating  within  the  Community  and  applies  both  to  charges  levied  between 
network operators at wholesale level and to charges levied by the home provider at 
retail level. 

2. 

This Regulation constitutes a specific measure within the meaning of Article 1(5) of 
Directive 2002/21/EC as amended by this Regulation. 

17 

OJ L 184, 17.7.1999, p. 23. 

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17 

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Article 2 

Definitions 

1. 

2. 

For the purposes of this Regulation, the definitions set out in Article 2 of Directive 
2002/21/EC,  Article  2  of  Directive  2002/19/EC  and  Article  2  of  Directive 
2002/22/EC shall apply. 

In  addition  to  the  definitions  referred  to  in  paragraph  1,  the  following  definitions 
shall apply: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

“home  provider”  means  the  undertaking  that  provides  the  roaming  customer 
with terrestrial public mobile telephony services at retail level; 

“home network” means the terrestrial public mobile network located within a 
Member  State  and  used  by  the  home  provider  for  the  provision  of  terrestrial 
public mobile telephony services to the roaming customer;  

“international roaming” means the use of a mobile telephone or other device by 
a roaming customer to make or receive calls, while outside the Member State 
in  which  the  customer’s  home  network  is  located,  by  means  of  arrangements 
between  the  operator  of  the  home  network  and  the  operator  of  the  visited 
network; 

“regulated  roaming  call”  means  a  mobile  voice  telephony  call  made  by  a 
roaming customer, originating on a visited network and terminating on a public 
telephone network within the Community; 

“roaming  customer”  means  a  customer  of  a  provider  of  terrestrial  public 
mobile  telephony  services,  by  means  of  a  terrestrial  public  mobile  network 
situated  in  the  Community,  who  uses  a  mobile  telephone  or  other  device  to 
make  or  to  receive  calls  on  a  visited  network  by  means  of  arrangements 
between  the  operator  of  the  home  network  and  the  operator  of  the  visited 
network; 

“visited network” means a terrestrial public mobile telephony network situated 
in  a  Member  State  other  than  that  of  the  home  network  and  permitting  a 
roaming customer to make or receive calls by reason of arrangements with the 
operator of the home network. 

Article 3 

Wholesale charges for the making of regulated roaming calls 

The total wholesale charge that the operator of a visited network may levy from the operator 
of  the  roaming  customer’s  home  network  for  the  provision  of  a  regulated  roaming  call, 
including  inter  alia  origination,  transit  and  termination,  shall  not  exceed  the  applicable 
amount per minute determined in accordance with Annex I. 

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Article 4 

Retail charges for the making of regulated roaming calls  

Subject to Article 5, the total retail charge, excluding VAT, which a home provider may levy 
from its roaming customer for the provision of a regulated roaming call may not exceed 130% 
of  the  applicable  maximum  wholesale  charge  for  that  call  determined  in  accordance  with 
Annex I. The charge limits in this Article shall include any fixed elements associated with the 
provision of regulated roaming calls, such as call set up charges or opt-in fees.  

Article 5 

Timing of application of maximum retail charge limits for regulated roaming calls 

The  obligations  in  Article  4  shall  take  effect  six  months  after  the  entry  into  force  of  this 
Regulation.  

Retail charges for the receipt of calls while roaming in the Community 

Article 6 

The  total  retail  charge,  excluding  VAT,  which  a  home  provider  may  levy  from  its  roaming 
customer in respect of the receipt by that customer of voice telephony calls while roaming on 
a  visited  network  shall  not  exceed,  on  a  per  minute  basis,  130%  of  the  average  mobile 
termination  rate  published  pursuant  to  Article  10(3).  The  charge  limits  in  this  Article  shall 
include any fixed elements associated with the provision of regulated roaming calls, such as 
one-off charges or opt-in fees. 

Article 7 

Transparency of retail charges 

1. 

2. 

3. 

4. 

Each  home  provider  shall  provide  to  its  roaming  customer  on  request  personalised 
pricing information on the retail charges that apply to the making and receipt of calls 
by that customer in the visited Member State.  

The customer may choose to make such a request by means of a mobile voice call or 
by sending an SMS (Short Message Service), in either case to a number designated 
for  this  purpose  by  the  home  provider,  and  may  choose  to  receive  the  information 
either  during  the  course  of  that  call  or  by  SMS  (in  the  latter  case  without  undue 
delay).  

The information service referred to above shall  be provided free of charge, both as 
regards the making of the request and the receipt of the information requested. 

The personalised pricing information referred to in this Article shall be the charges 
applicable under the tariff scheme of the roaming customer concerned to the making 

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5. 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

and  receipt  of  calls  on  any  visited  network  in  the  Member  State  in  which  the 
customer is roaming. 

Home  providers  shall  provide  new  customers  with  full  information  on  applicable 
roaming  charges  when  subscriptions  are  taken  out.  Home  providers  shall  also 
provide updates on applicable roaming charges to their customers on a periodic basis 
and, in addition, each time there is a substantial change in these charges. 

Article 8 

Supervision and enforcement 

National  regulatory  authorities  shall  monitor  and  supervise  compliance  with  this 
Regulation within their territory. 

National regulatory authorities shall have the power to require undertakings subject 
to  obligations  under  this  Regulation  to  supply  all  information  relevant  for  the 
implementation  and  enforcement  of  this  Regulation.  These  undertakings  shall 
provide  such  information  promptly  on  request  and  to  the  timescales  and  level  of 
detail required by the national regulatory authority. The information requested by the 
national regulatory authority shall be proportionate to the performance of its task.  

National  regulatory  authorities  may  intervene  on  their  own  initiative  in  order  to 
ensure compliance with this Regulation. 

Where a national regulatory authority finds that a breach of the obligations set out in 
this  Regulation  has  occurred,  it  shall  have  the  power  to  require  the  immediate 
cessation of such a breach. 

National  regulatory  authorities  shall  make  up-to-date  information  pertaining  to  the 
application of this Regulation publicly available in a manner that enables interested 
parties to have easy access to that information. 

National  regulatory  authorities  shall  monitor  developments  in  wholesale  and  retail 
prices  for  the  provision  to  roaming  customers  of  voice  and  data  communications 
services, including the Short Message Service (SMS) and the Multimedia Messaging 
Service (MMS), in particular in the outermost regions of the Community, and shall 
communicate the results of such monitoring to the Commission on request.  

Disputes  between  undertakings  providing  electronic  communications  networks  and 
services concerning issues included in this Regulation shall be subject to the national 
dispute  resolution  procedures  established  in  conformity  with  Articles  20  and  21  of 
Directive 2002/21/EC. 

The out-of-court dispute resolution procedures established in conformity with Article 
34 of Directive 2002/22/EC shall also be available to deal with unresolved disputes 
involving  consumers  and  (if  applicable  under  national  law)  other  end-users 
concerning issues included in this Regulation. 

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Article 9 

Penalties 

The Member States shall  lay  down  the rules on penalties  applicable to  infringements  of the 
provisions  of  this  Regulation  and  shall  take  all  measures  necessary  to  ensure  that  they  are 
implemented. The penalties provided for must be effective, proportionate and dissuasive. The 
Member  States  shall  notify  those  provisions  to  the  Commission  not  later  than  six  months 
following  the  entry  into  force  of  this  Regulation  and  shall  notify  it  without  delay  of  any 
subsequent amendment affecting them. 

Article 10 

Average mobile termination rate 

1. 

2. 

3. 

4. 

5. 

6. 

The  average  mobile  termination  rate  shall  be  determined  in  accordance  with  the 
criteria  and  methodology  set  out  in  Annex  II,  on  the  basis  of  information 
communicated by the national regulatory authorities in accordance with paragraphs 2 
and 4.  

Each national regulatory authority shall communicate to the Commission on request, 
and  within  the  time  limit  specified  by  the  Commission  in  that  request,  the 
information specified in Annex II.  

The Commission shall publish in the Official Journal of the European Union, on a 
regular  basis,  the  average  mobile  termination  rate  determined  in  accordance  with 
paragraphs 1, 2 and 4. 

For the first publication of the average mobile termination rate following entry into 
force  of  this  Regulation,  the  Commission  may  rely  on  the  latest  information 
consistent  with  Annex  II  which  has  been  collected  pursuant  to  Article  5(2)  of 
Directive  2002/21/EC  in  fulfilment  of  its  task  of  monitoring  the  implementation  of 
the 2002 regulatory framework for electronic communications. 

Undertakings  subject  to  the  requirements  of  this  Regulation  shall  ensure  that  any 
changes to their charges which are required to ensure compliance with Articles 3, 4 
and 6 take effect within two months from each publication pursuant to the preceding 
paragraphs of this Article.  

Amendments necessary to adapt Annex II to technical or market developments shall 
be adopted by the Commission, acting in accordance with the procedure referred to 
in Article 13(3). 

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Article 11 

Amendment to Directive 2002/21/EC 

In Article 1 of Directive 2002/21/EC the following paragraph 5 is added: 

“5. 

This  Directive  and  the  Specific  Directives  are  without  prejudice  to  any  specific 
measure adopted for the regulation of international roaming charges for mobile voice 
telephony calls.” 

Article 12 

Review procedure  

The Commission shall review the functioning of this Regulation and report to the European 
Parliament and the Council no later than two years after the date of its entry into force. In its 
report the Commission shall include its reasoning regarding the continued need for regulation 
or the possibility of its repeal, in the light of developments in the market and with regard to 
competition.  For  this  purpose,  the  Commission  may  request  information  from  the  Member 
States and the national regulatory authorities, which shall be supplied without undue delay. 

Article 13 

Committee 

1. 

2. 

The  Commission  shall  be  assisted  by  the  Communications  Committee,  set  up  by 
Article 22 of Directive 2002/21/EC. 

Where  reference  is  made  to  this  paragraph,  Articles  5  and 7  of  Decision 
1999/468/EC shall apply, having regard to the provisions of Article 8 thereof. 

The period laid down in Article 5(6) of Decision 1999/468/EC shall be three months. 

3. 

The Committee shall adopt its rules of procedure. 

Article 14 

Notification requirements  

Member States shall notify to the Commission within two months of the entry into force of 
this Regulation the identity of the national regulatory authorities responsible for carrying out 
tasks under this Regulation. 

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Article 15  

Implementation 

The  measures  necessary  for  the  implementation  of  this  Regulation  shall  be  adopted  in 
accordance with the procedure referred to in Article 13(2). 

Article 16 

Entry into force  

This Regulation shall enter into force on the day following the date of its publication in the 
Official Journal of the European Union. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

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ANNEX I 

Wholesale charges for the making of regulated roaming calls referred to in Article 3 

The total wholesale charges that the operator of a visited network may levy from the operator 
of  the  roaming  customer’s  home  network  for  the  making  of  a  regulated  roaming  call 
originating on that visited network shall not exceed, on a per-minute basis, an amount equal to 
the average mobile termination rate published pursuant to Article 10(3) multiplied: 

a) 

b) 

by a factor of two, in the case of a regulated roaming call to a number assigned to a 
public  telephone  network  in  the  Member  State  in  which  the  visited  network  is 
located; or 

by a factor of three, in the case of a regulated roaming call to a number assigned to a 
public  telephone  network  in  a  Member  State  other  than  that  in  which  the  visited 
network is located. 

The charge limits in this Annex shall include any fixed elements, such as call set-up charges. 

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ANNEX II 

Methodology for the determination of the average mobile termination rate referred to in 
Article 10 

(1) 

For  the  purposes  of  this  Annex,  the  following  terms  shall  have  the  following 
meanings: 

(a) 

(b) 

(c) 

(d) 

“National  Weighted  Average  MTR”  shall  mean  the  average  of  the  Per-SMP 
Operator MTRs, weighted on the basis of the number of Active Subscribers per 
SMP Operator; 

“Per-SMP  Operator  MTR”  shall  mean  the  average  per-minute  charge 
(including set up charges), based on a three-minute-call at peak rate, excluding 
VAT  and  in  the  national  currency  of  the  Member  State  concerned,  for  the 
termination of voice calls in its mobile network applied by each SMP Operator, 
as  determined  in  accordance  with  a  methodology  approved  by  the  national 
regulatory authority;  

“SMP Operator” shall mean an operator  of terrestrial public  mobile networks 
which  has  been  designated  as  having  significant  market  power  in  accordance 
with Article 16 of Directive 2002/21/EC in a market for the termination of calls 
on such network in the Member State concerned; 

“Active  Subscribers  per  SMP  Operator”  shall  mean  the  aggregate  of  the 
number  of  each  SMP  Operator’s  own  active  subscribers  and  the  number  of 
active  subscribers  of  each  other  mobile  provider  which  uses  the  SMP 
Operator's network for the termination of voice calls to its customers; 

(e) 

“active  subscribers”  shall  mean  active  mobile  subscribers  (both  pre-paid  and 
post-paid)  determined  in  accordance  with  a  methodology  approved  by  the 
national regulatory authority. 

(2) 

The average mobile termination rate published pursuant to Article 10(3) shall be the 
average of the National Weighted Average MTRs, itself weighted on the basis of the 
total number of active subscribers in each Member State. It shall be calculated using 
the  information  specified  in  paragraph  (3)  below  which  has  been  communicated  to 
the Commission by the national regulatory authorities in accordance with a request 
pursuant to Article 10(2) or (4). 

(3) 

The information to be communicated to the Commission by the national regulatory 
authorities shall be: 

(a) 

the National Weighted Average MTR, and  

(b) 

the sum of all the Active Subscribers per SMP Operator within their Member 
State, 

in  each  case  as  at  the  date  specified  for  this  purpose  by  the  Commission  in  its 
request. 

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(4) 

For Member States with a currency other than Euro, the Commission will convert the 
notified  National  Weighted  Average  MTR  into  Euro  by  using  the  exchange  rate 
published in the Official Journal of the European Union for the date specified by the 
Commission under (3) above. 

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