The review finds data roaming consumption increased 12-fold since the removal of surcharges, with mobile retail prices continuing to fall.
Background: The EU Roaming Regulation of 2015 introduced the roam-like-at-home (RLAH) regime, whereby customers of EU mobile operators do not pay extra charges for roaming within the EU and can effectively replicate the home use of their mobile bundle, including their data allowance. Some exceptions apply where operators can demonstrate the need to retain surcharges. RLAH came into force in June 2017, after a decade of efforts to cap roaming charges through successive regulations. The EC has now published the first full review of the roaming market since RLAH came into being.
A 12-fold increase in data roaming usage: The most striking finding of the review is the staggering increase in the use of mobile data while roaming. In the Summer of 2018, EU consumers used 12 times as much data as they did before surcharges were scrapped. The volume of phone calls also increased by three times over the same period of time.
No ‘waterbed effect’: The review highlights another positive for consumers: the loss of revenue from roaming surcharges has generally not resulted in higher domestic prices. In fact, mobile prices across the EU have overall decreased, which suggests competitive pressure has worked to prevent the risk of a possible waterbed effect. The sharp reduction of wholesale prices may have also contributed to making roaming charges sustainable for most providers.
A look to the future: The current Roaming Regulation is valid until June 2022. It is unlikely to see any major changes, since the review notes that competition dynamics in the roaming market are unlikely to change in the near future. The Regulation has naturally proved very popular with consumers, which will make policymakers reluctant to scrap it in the absence of a better alternative.
