When prices are disparate in telecommunications, there always is arbitrage (“gaming the system”). And that has been a 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 new rules essentially limit the amount of roaming by any single account. Customers can 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.
That is akin to a “fair use” policy for Internet access.
To prevent businesses from buying up prepaid SIM cards in low-cost countries and reselling them in high-cost countries, operators will also be allowed to require that a certain volume of services be paid for and consumed on the home network before a subscriber identity module can be used for roaming.
So, though in principle there are no “roaming charges,” there still can be “surcharges.”
The impact on mobile operator revenue is clear, though: revenue will drop as much as 20 percent. Still, there is possibility of arbitrage. People will figure out ways to take advantage of it, doubtless.
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