EU Urges Mergers, Consolidation in European Wireless Market
by Karl Bode 06:19PM Wednesday Jun 26 2013 Tipped by Cabal
Holding tight to previous promises to kill roaming fees and impose network neutrality, the European Union appears poised to kill off roaming fees for voice, text and data services across Europe starting next year. According to Wired UK, the European Commission has fast-tracked the telecom-related reforms ahead of the next European elections (May, 2014). The EU predicts that the move will erode carrier revenues by around 2%, but that this will be offset by a greater willingness of travelers to use their devices with fewer penalties. The EU appears hopeful that this will encourage consolidation and mergers among the EU's 100 some odd wireless carriers.
if EU does this, US will be expected to respond. Hopefully by doing the same, but then again realistically they'll probably try to call it a terrorist action or find a way to make it sound like communism.
2013-Jun-26 11:05 pm: ·
KA3SGM - -... ...- - Premium join:2006-01-17 West Chester, PA kudos:1
Maybe with Verizon trying to make inroads into Canada, they would offer access to both of their networks. How awesome would that be?
I don't think much will come of it besides whats already available. At&t owned part of Rogers for a while and there were no such deals. Currently (at least state side) At&t and Verizon do offer plans that include Canadian roaming but they do cost about $20-30 extra. --
Many wireless operators in European countries operate cross borders and they still have been charging outrageous fees even for roaming on their very own network.Big corporate will not do anything unless you force them.
My thinking is that it is because roaming fees are something that smaller carriers pay for, so I suppose maybe the idea is that the smaller carriers will be able to band together and be a significant competitor? That is, assuming access fees will be reduced as well.
Then again if you have no roaming fee using a smaller carrier's network when available = trivial. I can see a positive ripple affect here.
I think we can all agree that as bad as roaming charges are, how are mergers and acquisitions supposed to help the consumer?
If I have a choice between ten carriers in a given area, or three, doesn't it stand to reason that the area with only three competitors will see less competition and higher prices simply because of that lack of choice?
What if the 10 carrier scenario has poorer coverage or slower speeds compared to the 3 carrier scenario? This makes various assumptions (roaming, all networks are seperate, etc.) and is meant to be a hypothetical question.
IMO, there exists a sweet spot in which there's enough carriers/companies to have true competition (no duopoly, or poly-opoly :P in some fashion) and be large enough to invest, continual, into infrastructure. At this point, i'll put down the pipe.