Five mobile operators with networks covering 10 European markets and a population of more than 295 million – 60 per cent of the European Union’s total 495 million – have today accepted the challenge set by the European Commission to push for better value data roaming for customers.
KPN in the Netherlands, Belgian operator BASE and German operator E-Plus have joined Play in Poland and 3 in the UK, Italy, Ireland, Austria, Sweden and Denmark to agree a wholesale rate of EUR0.25 (18.6 UK pence at today’s rates) per MB of data downloaded. The new wholesale price will be introduced by the five initial participants on 1 March 2008.
In order for customers across the EU to benefit from the potential this offers to reduce retail prices, the five operators have challenged other operators across Europe to join them by also bringing down their wholesale rates. With the European average retail roaming rate currently at EUR5.24 per MB, this could lead to significant reductions in retail prices across the EU.
"This will allow us to pass on the significant savings achieved through a simple, transparent and competitive wholesale tariff to our customers across the EU," said Stan Miller, President and CEO of KPN Mobile Group. "Our companies in Germany and Belgium have supported the initiatives of Mrs Reding to make mobile telephony affordable. Voice roaming was one example. Now it’s time to support the demand for data roaming across the EU. This deal is a start. It reaches across 10 countries. We hope that other operators in more markets will act too."
Consumers across Europe are still fearful of using their phones and laptops to access data via mobile networks abroad as they are concerned they will be charged exorbitant prices for the same simple and increasingly inexpensive tasks they are now used to at home.
According to Christian Salbaing, MD European Telecommunications for Hutchison 3G Europe, wholesale data pricing must be brought more consistently in line with the cost of providing the data. "Simple and transparent wholesale pricing will enable competition to establish more consumer-friendly offers right across the EU."
"Our move on wholesale prices is intended to be a concrete step to bringing fairly-priced data roaming to Europe. We believe the benefit to consumers will be a move away from inflated per-event based prices to charging on a more consistent flat-rate subscription-based model which is what we are all now used to experiencing with the internet," he adds.
National regulators and the European Commission have called for the industry to act to end excessive prices, promising action at the regulatory level should the market fail to deliver. This deal is designed to kick-start inexpensive mobile internet access for roamers across Europe.
Chris Bannister, CEO of Play commented: "In 2007, Play was the first to move to reducing voice pricing across Europe. 2008 will be the year when the participants in this initiative will change the rules for data usage making Mobile Broadband truly mobile. I hope all major European players will join this initiative, so that all European consumers can enjoy the benefits of mobile Internet access without fear of being ripped off when they get their bill."
Mobile broadband is becoming an everyday reality for consumers in their home markets, yet current retail data roaming prices for consumers travelling elsewhere in Europe can easily be 50-times the level offered by their operator at home.
"When customers travel to parts of Europe not served by their home network provider, they risk massive bills for simply browsing the web or accessing their email over the mobile network," said Mr Bannister.
UK Contacts:
Hugh Davies / Guy Middleton, 3 UK Tel: 07782 325923 / 07782 329663
Chris Blundell/Tim Williamson, Brunswick Tel: 020 7396 7408 / 020 7396 5350
About KPN Mobiel, BASE and E-Plus
BASE n.v./s.a. is a 100% subsidiary of KPN Mobiel N.V., the mobile division of Koninklijke KPN N.V. KPN offers mobile voice and data services in Germany (E-Plus), Belgium (BASE) and the Netherlands (KPN, Hi and Telfort). At the end of 2007, BASE had 535 employees and a market share in number of customers of more than 23%. In 2007, BASE had a yearly turnover of 613 million euros. The company’s headquarters are in Brussels; it positions itself as a challenger and an innovator in products and services via a segmented approach.
With 15 million customers the E-Plus Group is the third-largest mobile network operator in Germany and a member of the KPN Group. The company has been the fastest and most profitable growing provider in the German market in 2006 and 2007.
With the launch of brands like BASE, simyo, Ay Yildiz and vybemobile the company has developed from a single brand to a brand group. Further partnerships with successful companies from other industries strengthen the sales strategy. These new initiatives have gathered more than 7.6 million customers since summer 2005.
The company has 2,200 employees in Germany and achieves annual revenues of 3 billion euros.
About 3 Group
A division of Hutchison Whampoa, the 3 Group together with Hutchison Telecommunications International Limited, is the leading global player in the 3G arena, holding licences in 11 markets with total population coverage of approximately 175 million.
In each of its markets the 3 Group has built an entirely new mobile broadband network, achieving probably the fastest rollout of a radio network in the entire telecom industry. Marketed globally under the 3 brand, the 3 Group was the first operator in the world to provide dual-mode 3G services.
About Play
Play is a leading operator of 3G broadband mobile network in Poland. The company is jointly owned by Novator Telecom Poland (53.4%), Netia S.A. (23.4%) and Tollerton Investments (22%). In its first 10 months of commercial operation Play attracted over 1 mln customers offering attractively priced innovative services. Play was also the first operator in Europe to launch roaming Eurotariff to all of its customers.