GSM Association: Roaming rate cut will hurt profits

To show you just how much roaming means to European operators, the GSM Association says impending legislation regulating roaming prices in Europe could cost operators $5.5 billion in revenue and $4.1 billion in profits. As the debate rages on over whether European roaming rates should be regulated, the GSM Association is putting the full lobbying heat on the European Commission to allow operators to voluntarily lower rates. Vodafone, Orange and O2 have already lowered rates. The association says its members are voluntarily cutting roaming tariffs and this "downward trend" will "accelerate this year." If forced to cut rates quickly, the association warned that operators with the lowest domestic rates or operators which are only marginally profitable could see their profits fall by as much as 20 percent.

To read more about the roaming debate in Europe:
- take a look at this article from Dow Jones

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