European Union Moves Forward With Plans to Eliminate Roaming Charges Next Year

[mark-vdw]

Won't happen. Ever. At best one in 20 people would think this is even a good idea.
For the most part, the EU is in the midst of collapsing. What started out as a good idea with a common currency and common market with free travel and exchange of goods, products and services has turned into an over-regulated nightmare with the EC making up rules and regulations as they go. Brexit was just first step in its collapse. Italeave will be next and the dominoes will all fall.

Oh, let it go already.

The EC is not making up random rules and regulations, they're regulating trade because that's the job it was created for. Stop reading the high-quality British newspapers with articles about how "the EU should be focussing on trade rather then regulating bananas" (hint: introducing market standards is a key element in eliminating so called non-tariff barriers to trade). The EU is doing exactly what it should be doing, and it's doing a pretty good job at it.

Most of the issues currently facing the EU (e.g. lack of common border control, limited cooperation on security and intelligence, lack of instruments to deal with economic fluctuations, perceived "democratic deficit" because the national governments don't want transnational elections to reduce the EU's democratic legitimacy, lack of social initiatives because anything related to social affairs is being held at state level) are mainly due to the limitations on the EU imposed by figures like Nigel Farage and Geert Wilders. And then they use the consequence of the limitations they introduced to cynically "prove" that they were right. It would be funny if it wasn't so sad.

 

[ActionableMango]

Still don't understand how American carriers do the ass-backwards move of charging for data with unlimited texts, while every other country in the world does practically unlimited data and charges per text. Who's correct?

I don't think "correct" is quite the right word, but American carriers aren't "ass-backward" in doing this.

SMS message technology piggybacks on the periodic background communication between your phone and local towers. Your phone and the towers basically "check in" with each other anyway, and when you have SMS messages, those go out the same way. SMS is essentially zero-cost to the carrier, no matter how many messages you send.

Historically, prior to the iPhone, carriers used to charge 5, 10, or even 25 cents per message--that was 100% profit. And really, really good profit too. There were stories of teenagers and business folk racking up hundreds of dollars in text messaging fees--for something that costs the carriers nothing. Today text messaging is typically unlimited and free, which more closely matches the actual cost to the carrier (free).

3G/4G/LTE/etc data on the other hand is very expensive to the carrier. The technology isn't "already there" like it was for SMS. It has to be engineered, tested, go through regulatory process, and be standardized among many different companies with different ideas and priorities, include the people that make the equipment in the tower, the handset makers, and the carriers. Then it has to be physically installed on every single tower across the area that you want to cover, including downtime, rackmount equipment, wiring, power, and possibly new antennas, a process which is a laborious and expensive. Remote towers on mountaintops with no road access are horrendously expensive to work on. Picture a radio shack with 8 feet of snow around the building--you have to helicopter up there and dig down to the door.

Then a couple of years later the data technology is obsolete and you need to do it all over again.

So yes, when US carriers charge for data use and provide SMS for free, that more closely matches the costs to the carriers associated with the two technologies.

If carriers everywhere else are doing it in reverse, then that seems like a dying model to me. How can they even charge for messaging when there are so many free alternatives like iMessage, FaceBook Messenger, etc etc?

 

[bigchrisfgb]

Still don't understand how American carriers do the ass-backwards move of charging for data with unlimited texts, while every other country in the world does practically unlimited data and charges per text. Who's correct?

Not true. Here in the UK it's usually a case of charging for everything and the allowances increasing as you go up.

 

[EightyTwenty]

Hopefully the EU won't even exist a year from now. Make Europe Great Again!

 

[urbanlung]

Well done all you Brexiteers, here is another reason to regret ever giving you the vote! Idiots.

 

[KALLT]

In this article they calculate contract price, data price and double it. What if I have a really good deal with high data cap and low price? Then it's not "roam like at home"

You will get the allowance in full. For instance, if you have a monthly data allowance of 10 GB, then you will get that free of roaming charges too. The calculation is only applicable if you have unlimited data, in which case you will get twice the total value of your contract, with €0.0085 per MB at the current wholesale price.

 

[AeroZ]

You will get the allowance in full. For instance, if you have a monthly data allowance of 10 GB, then you will get that free of roaming charges too. The calculation is only applicable if you have unlimited data, in which case you will get twice the total value of your contract, with €0.0085 per MB at the current wholesale price.

Ah I see. I thought unlimited plans are extinct by now. At least I got 1TB to spend.

 

[ksnell]

Markets are efficient when they have large numbers of buyers and sellers.

Telecoms operators are natural monopolies (or oligopolies) because of the high entry costs involved. They are far from efficient markets. This means that when market failure occurs (for example a disproportionate price like roaming at 1€ per MB) government steps in to regulate.

I agree regulation is required on occasion as in the case of monopoly and price gouging but typically the free market will take care of itself. If you don't like the price, don't pay for it. If enough people don't like the price, then the company will be forced to lower it or go bankrupt. But if people are paying for it, the evidently they are okay with the price. This is not a life or death good here - you do not need a cell phone with roaming at a particular price to survive.

 

[elthesensai]

I agree regulation is required on occasion as in the case of monopoly and price gouging but typically the free market will take care of itself. If you don't like the price, don't pay for it. If enough people don't like the price, then the company will be forced to lower it or go bankrupt. But if people are paying for it, the evidently they are okay with the price. This is not a life or death good here - you do not need a cell phone with roaming at a particular price to survive.

Unfortunately there isn't enough competition for people to go somewhere else. Really not a free market because of that.

 

[manu chao]

SMS message technology piggybacks on the periodic background communication between your phone and local towers. Your phone and the towers basically "check in" with each other anyway, and when you have SMS messages, those go out the same way. SMS is essentially zero-cost to the carrier, no matter how many messages you send.

Even if an SMS is travelling as data, 250 characters at 8-bit is 2kB, essentially nothing. And SMS can be very fast. When I pay with a debit card, I get an SMS informing me before the machine even gives me back my debit card.

 

[nazaar]

Still don't understand how American carriers do the ass-backwards move of charging for data with unlimited texts, while every other country in the world does practically unlimited data and charges per text. Who's correct?

Not in Canada.

 

[ActionableMango]

Even if an SMS is travelling as data, 250 characters at 8-bit is 2kB, essentially nothing. And SMS can be very fast. When I pay with a debit card, I get an SMS informing me before the machine even gives me back my debit card.

That's a good point, and an additional reason why it makes no sense to charge for text messages.

 

[tumtumtum]

Looks like we'll only be able to enjoy this for a year then we'll get Brexit in the U.K.

Assuming article 50 is triggered Brexit negotiations will still take 2 years.

 

[konqerror]

Still don't understand how American carriers do the ass-backwards move of charging for data with unlimited texts, while every other country in the world does practically unlimited data and charges per text. Who's correct?

Another vote for not true anymore. European carriers largely charge by the GB. Checking out Virgin UK, Orange France, T-Mobile Germany. All charge.

Example: T-Mobile Germany. 45 Euro ($48) for 6 GB, unlimited text and calls. In the US, 6 GB from T-Mobile US (you have to get 2 lines) is $55 each. Not the difference you were imagining.

That's a good point, and an additional reason why it makes no sense to charge for text messages.

The cost of SMS is largely dominated by intercarrier compensation: the originating (sending) carrier pays the terminating carrier a fee, exactly the same as voice and often data.

It's just different from how the US carriers handle the plans as people travel across the country.

And that's the entire problem with the EU. The poorest EU country has a GDP per capita 1/14th that of the richest. That's like saying if AT&T in Alabama charged you $10 a month and charged California $100, you'd have this arbitrage issue.

 

[Tech198]

Roam like at Home... catchy..

Roaming charges is where carrier would make most of their $$$,..... Why would they wanna end up wasting it by giving users more data when overseas and not charging as much? Just means they'll make up the downfall in other areas... local SMS prices will go up instead or call costs.

 

[NathanWind]

Government is always the answer. Just one more law. This time we'll get it right!

 

[827538]

Couple of points.

This took way, way, way too long to finally come to fruition. If abolishing mobile roaming takes over a decade then how on earth can our EU politicians be expected to deal with the major issues in a timely manner?

Second, and I keep feeling the same way whenever I see a positive point to the EU....
Do we need a massive and very beaurocratic super state in order to implement this? I really don't think so.
Common market with universal roaming is what I think the EU should be.
Trade, cooperation and friendship. Not an EUSSR.

Yes I'm against the EU, I'm 24, university educated and travel to Germany four times a year to visit friends. I believe the EU has warped into something very wrong and the path it's on will tear Europe apart.

Three have basically abolished roaming in Europe (and in many other places like the US) so clearly we don't need the EU for something like this to succeed.

 

[manu chao]

Government is always the answer. Just one more law. This time we'll get it right!

You can look at this from many different angles, but one of them is that the EU is there to ensure that the whole EU acts like a single market, that there are no barriers for goods, services, capital or people. Roaming fees are a barrier for people and indirectly also for commerce. And the market alone is not getting rid of the roaming fees or at least it is taking a very long time. Roaming fees are simply to low a concern for the vast majority of people shopping for mobile plans.

In essence, imposing one regulation which isn't in principle much of a burden for mobile carriers, reduces friction in the overall economy.

 

[jeff051177]

Roaming charges are just price gouging - there is no reasonable case for why they are so high (or even required at all).

I agree regulation is required on occasion as in the case of monopoly and price gouging but typically the free market will take care of itself.

This is exactly whats happened - Although there were a few disruptors in the market, by-and-large there is/was tacit agreement between the carriers to charge these extortionate rates. This is/was a defacto monopoly, and the regulators are stepping in to protect the consumer.

 

[ryanwarsaw]

Still don't understand how American carriers do the ass-backwards move of charging for data with unlimited texts, while every other country in the world does practically unlimited data and charges per text. Who's correct?

I would rather have the data and pay for texts. I didn't think anybody ever used plain Jane texting anymore.

 

[Porco]

I'm going to assume 'Brexit' (a term I loathe regardless of the political debate)+ exiting an EU roaming deal = 'Bro-exit', because that sounds more amusing.

More seriously, It's ludicrous to me that roaming charges still exist on any plan, with any phone company, in any circumstances. It's nearly 2017 (and that's almost half-past eight), and I really think we human beings should be capable of standardised low-cost cellphone usage anywhere in the world by now. The technology bit is pretty much sorted isn't it? Just all the political and commercial nonsense stopping it happening, like so much else.

 

[nsayer]

EU member states include [...] the United Kingdom.

For now.
[doublepost=1481264333][/doublepost]

In all seriousness - is meddling in private business like this really a good idea?

I know, I know, I am a big, dumb, free market, capitalist American.

Tell that to Bloomberg next time you buy a soda.

 

[MacsRgr8]

Meanwhile the Trump administration is trying to figure out how to best maximize profits for the telecoms while hurting customers.

Sounds like what Tim is doing with Apple.

BTW... over here in the EU (if you can actually call it a Union...) the carriers will find a way so that it won't hurt them, and the customers will pay.
You guys understand that if you live in small country that chances are you have to "roam" by accident, i.e. use your iPhone when crossing a border for the *thteen time... The amount of time you slip in and out of Belgium and Germany while travelling even "through" Holland....

IMHO the real solution will be that Apple (or whoever) either has a "global carrier partnership" or is a carrier itself.
Wouldn't it be great if you buy an iPhone, no need for a SIM, and pay-per-use of data / txt / voice monthly?

 

[zen]

Im with Three UK and they already do this to certain countries (growing list) i went to Prague in September, and upon arrival got my welcome text and calls, texts and data came out of my allowance which includes totally unlimited data. I was still able to teher my macbook and that came from the allowance as well, so no nasty surprises, all for only £15 a month.

I'm with Three too, but the problem is they throttle their roaming use - you will never, ever get 4G while abroad. Unlike every other UK mobile carrier. Three's "free" roaming in the US is unbearably slow.

 

[dave61]

Still don't understand how American carriers do the ass-backwards move of charging for data with unlimited texts, while every other country in the world does practically unlimited data and charges per text. Who's correct?

Not sure where you are looking at, but the norm in the UK and Netherlands is texts are free/very cheap and you pay for data.
[doublepost=1481267426][/doublepost]My carrier, Vodafone Netherlands, just changed my (top-end) contract so that my data allowance is valid across Europe (as long as I am connected to their local partner). This is better than the EU proposal because there is no requirement that most of the data is consumed in my home country. I can only assume that this is a response to market pressure.