14 Sep, 2012
ITU Acts to Cut Roaming “bill shock” Charges for Consumers
Geneva, 14 September 2012 (ITU Media release) – International Telecommunication Union members from the public and private sectors have agreed on measures to reduce ‘bill-shock’ whereby consumers are faced with unexpected and excessive charges for mobile roaming.
They have approved a number of measures to empower consumers and encourage operators to lower tariffs. These measures (Recommendation ITU-T D.98) will represent the first truly international agreement taking steps towards lowering roaming costs.
Governments and regulators are recommended to explore ways to protect and empower consumers in determining their best choices among the array of options available to them in the rapidly evolving mobile marketplace, for example by making information on international mobile services clearer and more transparent, and by making it easier for consumers to choose a network abroad that offers the best value.
In addition, alerts should be sent to consumers as they approach a certain cost limit for roaming, with a block placed on further usage unless authorized by the user. Market-based solutions are advocated, including cultivating regional cooperation among operators and regulators, and encouraging them to reach agreements on lowering wholesale roaming tariffs. Possible regulatory measures are also recommended, such as placing caps on prices charged to consumers for mobile roaming.
ITU Secretary General Hamadoun I. Touré said, “ITU Member States agree on the need for international action on roaming charges, and this agreement is a clear indication of a willingness to address the issue for the good of both consumers and the global trade. I believe operators will see benefits in the long term as higher volumes of traffic are generated when it becomes more attractive for consumers to use their phones and mobile services while travelling.”
International roaming is by nature a multi-country issue, and unified action from the international community is therefore the only means to address “bill-shock”. The issues involved and their degree vary from region to region (and also within regions), in terms of economics, market structures and regulatory frameworks.
As there is no guarantee that unilateral action by one country’s national regulatory authority will lead to reciprocal action in other countries, cooperation between regulators and policy makers – either bilaterally or multilaterally – is likely to be more effective than unilateral action by any one national regulatory authority.
Additional measures in Recommendation ITU-T D.98 include advocating the use of services that enable substitutes such as different SIM cards (an example is the use of global virtual mobile network operator cards), dual-SIM handsets, or the rental of a second handset. Member States are also encouraged to investigate the provision of international mobile roaming services by other means, for example by the take-up of new technologies so as to increase user choice.
The World Conference on International Telecommunications (WCIT-12) in Dubai this December will consider proposals on international mobile roaming for inclusion in the global treaty on international telecommunications. This treaty known as the “International Telecommunication Regulations” (ITRs) is up for review for the first time since 1988 – long before the explosion of mobile communications – to take into account the vastly altered telecommunications environment.
Proponents believe that regulations to ensure transparency of end-user prices for international mobile services, and for users to promptly receive full information when crossing a national border would lead to greater competition with potential benefits for consumers. Another proposal would ensure that prices are based on either the actual costs incurred by the service provider, or comparable to the prices charged in the user’s home country, or to those charged to customers in the visited country.
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