Tuesday, September 13, 2016

EU Roaming Rules Withdrawn

The European Commission's mobile phone roaming rules has been withdrawn after a week in public view. Those rules would have featured measures requiring roamers to spend minimum amounts of time in country.

The original rules were designed to protect against price arbitrage.  The concern: as the European Union eliminates roaming charges, users might arbitrage the system by becoming “permanent roamers,” buying capacity in a low-tariff nation when they actually intend to use the services in another country (buying low, using in a higher-tariff nation).

So the proposed rules essentially limitedthe amount of roaming by any single account.

Customers could roam for at least 90 days per year, but also must log on to their home network at least once every 30 days to avoid surcharges. But students objected, pointing out if studying abroad for a year, the rules on in-country use would be burdensome.

Roaming revenues will be nearly eliminated, though some surcharges will be allowed.  

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