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End Roaming Charges Across Europe, E.U. Chief Says End Roaming Charges Across Europe, E.U. Chief Says
(about 4 hours later)
BRUSSELS — European Commission President José Manuel Barroso called on Wednesday for an end to the high charges for using mobile phones across national borders throughout Europe.BRUSSELS — European Commission President José Manuel Barroso called on Wednesday for an end to the high charges for using mobile phones across national borders throughout Europe.
By making the issue of roaming charges one of the centerpieces of his annual State of the Union address, Mr. Barroso was seizing on one of the few truly popular European initiatives at a time of rising skepticism about the Union. By making the issue of roaming charges one of the centerpieces of his annual State of the Union address, Mr. Barroso was seizing on one of the few truly popular European initiatives at a time of rising skepticism about the European Union.
“I would like to announce today we will formally adopt a proposal that gives a push toward a single market for telecoms,” Mr. Barroso told the European Parliament in Strasbourg. European authorities have already “dramatically brought down their costs for roaming,” he said, and the latest proposal will go further to “lower prices for consumers and present new opportunities for companies.”“I would like to announce today we will formally adopt a proposal that gives a push toward a single market for telecoms,” Mr. Barroso told the European Parliament in Strasbourg. European authorities have already “dramatically brought down their costs for roaming,” he said, and the latest proposal will go further to “lower prices for consumers and present new opportunities for companies.”
E.U. authorities already cap the fees for roaming, and Neelie Kroes, the E.U. commissioner for digital issues, suggested an end to roaming fees in May. European Union authorities already cap the fees for roaming, and Neelie Kroes, the E.U. commissioner for digital issues, suggested an end to roaming fees in May.
Mr. Barroso’s support for breaking down barriers between telecommunications markets should give the initiative added momentum, but it comes as members of the Union like France, Germany and Britain grow ever more wary of giving Mr. Barroso and the commission more powers. A debate over where to put authority over issues like the economy and immigration policy will be a major challenge for the bloc in the years ahead, and it’s likely to require a long and acrimonious battle to change the Union’s treaties. Mr. Barroso’s support for breaking down barriers between telecommunications markets should give the initiative added momentum, but it comes as countries like France, Germany and Britain grow more wary of extending the powers of Mr. Barroso and the commission. A debate over where to put authority over issues like the economy and immigration policy will be a major challenge for the bloc in the years ahead, and it’s likely to require a long and acrimonious battle to change the Union’s treaties.
Against that backdrop, the issue of roaming charges for mobile phones is a relatively easy and straightforward one for Mr. Barroso to highlight. Against that backdrop, the issue of roaming charges for mobile phones was a relatively easy and straightforward one for Mr. Barroso to highlight.
Unlike Americans, who often can roam outside their home states without incurring extra fees, Europeans often get stuck with huge bills for checking e-mail, browsing the Web, and using social media while on business or on vacation in neighboring countries. Unlike Americans, who often can roam outside their home states without incurring extra fees, Europeans often get stuck with huge bills for checking e-mail, browsing the Web and using social media while on business or on vacation in neighboring countries.
That, in turn, has caused travelers in Europe to switch off or drastically limit their use of mobile Internet — a phenomenon that may be slowing the development of some services. That, in turn, has caused travelers in Europe to switch off or drastically limit their use of the Internet via mobile phone — a phenomenon that may be slowing the development of some services.
The proposal must be approved by the European Parliament and by E.U. governments before becoming law and is likely to face ferocious lobbying. Roaming charges make up a big chunk of telecommunications operators’ profits, and many companies have already objected to the initiative.The proposal must be approved by the European Parliament and by E.U. governments before becoming law and is likely to face ferocious lobbying. Roaming charges make up a big chunk of telecommunications operators’ profits, and many companies have already objected to the initiative.
Some analysts said the industry should be able to manage the challenges.Some analysts said the industry should be able to manage the challenges.
“Whether the end of roaming is good or bad news for operators depends entirely on how they market it,” said Adhish Kulkarni, the chief marketing officer of Lumata, a mobile marketing company. “Instead of worrying about a predicted 2 percent drop in revenue, smart telcos will look hard at the opportunities presented by a customer base that’s far more willing to use their phone abroad.”“Whether the end of roaming is good or bad news for operators depends entirely on how they market it,” said Adhish Kulkarni, the chief marketing officer of Lumata, a mobile marketing company. “Instead of worrying about a predicted 2 percent drop in revenue, smart telcos will look hard at the opportunities presented by a customer base that’s far more willing to use their phone abroad.”
Mrs. Kroes is expected to present further details of the plan later Wednesday or on Thursday to phase out roaming fees, probably by 2016. Mrs. Kroes is expected to present further details of the plan later Wednesday or Thursday, probably to target 2016 for the end of roaming fees.
She is expected to call for clients to be allowed to switch operators when abroad as a way of putting pressure on the industry to offer better deals, like packages covering more than one country, and to form alliances to trim costs.She is expected to call for clients to be allowed to switch operators when abroad as a way of putting pressure on the industry to offer better deals, like packages covering more than one country, and to form alliances to trim costs.