11 June 2008

Carriers hike non-EU roaming rates

I have been sitting on this story for a while. The lesson is that firms respond to regulation in many different ways:
European wireless carriers have sharply raised prices for making and receiving calls outside the European Union to compensate for regulator-imposed lower tariffs within the EU, a market research firm said.

Informa Telecoms and Media said on Friday roaming charges had risen as much as 163 percent since the EU capped rates last year at 0.49 euros ($0.76) a minute for making calls abroad in the 27-nation bloc and 0.24 euros for receiving them.

The average price of a call home by an Italian subscriber in Russia was 3.67 euros a minute in 2006, but this has risen 25 percent to 4.58 euros, Informa said.

For customers in most European countries, the cost of roaming in Africa, China, India, Japan, the Middle East, Russia and the United States has risen, the Informa data showed.

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