Issue: 31/08

Roam Fair Update/Minister’s Comments on International Roaming Charges

August 13, 2008

ATUG is delighted to see the Minister understands the concern of end users about mobile roaming charges and the dangers of “bill shock” that await customers using voice or data services while roaming.

The Minister has released a KPMG Report prepared for the Department of Broadband, Communications and the Digital Economy which highlights concerns about excessive international mobile roaming charges.

The report is available here

The report highlights the differences between prices paid by Australian consumers and consumers in other countries when roaming overseas to a range of popular business and tourist destinations.

The report found that Australians using mobile roaming overseas pay more on average than consumers from countries in Asia and North American using roaming in Australia. The reverse was true for Europeans except that the roaming rates between Australia and Europe are higher than elsewhere on average.

Numerous public and private technical studies referenced throughout the report suggest that international mobile roaming charges are unreasonably high. These studies, in addition to the first hand data collected and analysed, point to a number of key issues that contribute to the high cost of roaming when compared to other forms of telecommunications.

The key issues identified are:

Consumers and regulators believe that the price of international mobile roaming is excessive.
· Numerous technical studies have concluded that mobile roaming retail margins are very high.

· There is lack of consumer clairty around mobile roaming plans and prices

· There are limited market incentives for roaming prices to decrease.

European policy makers and regulators found the same problems there and after looking, waiting and talking with operators for over 10 years finally moved to mandate reductions in prices in July 2007 with further reductions mandated over the next two years. The EU is now looking at SMS roaming charges and data roaming charges with a view to reducing these after expressing concerns on behalf of end users and seeing no action by operators.

The KPMG report shows standard rates to call home from Beijing are:

Optus - $4.79 per minute

Telstra - $2.88 per minute

Three - $3.02 per minute

Vodafone - $1.86 per minute

Our message to members during the Olympics is – “Enjoy Beijing! Don’t Phone Home!”

The Minister is encouraging end users to make their voice heard by lodging a submission to the Parliamentary Inquiry here

ATUG will be making a submission on behalf of our members using feedback from our national members’ forums and ATUG Blog. The EVUA users groups based in the UK will be making a submission on behalf of their members (Fortune 1000 companies).

ATUG launched our Roam Fair campaign in March 2008 to bring international roaming rates down to fair levels. The Minister raised this issue at the APECTEL Ministers’ meeting in April 2008. A House of Representatives Inquiry into International Roaming was announced on 17th June 2008

A copy of the report will be provided to the House of Representatives Parliamentary Inquiry on International Mobile Roaming: Click Here

The report is available at: www.dbcde.gov.au