Cellular17.09.2012

Expensive cellular roaming in ITU sights

Mobile operator shakedown: roaming, ad-hoc, OOB

The International Telecommunications Union (ITU) announced in a press statement on Friday (14 September 2012) that members from the public and private sectors have agreed on measures to reduce “bill-shock”.

Bill-shock refers to the “unexpected” and “excessive” charges faced by consumers for mobile roaming, the ITU explained.

Members have approved a number of measures to empower consumers and encourage operators to lower tariffs, the ITU said.

These measures (Recommendation ITU-T D.98) will represent the first truly international agreement taking steps towards lowering roaming costs.

Among the recommendations made, was that governments and regulators ensure that information on international mobile services are clearer and more transparent. They should also make it easier for consumers to choose a network abroad that offers the best value, the ITU said.

Subscribers should also receive alerts as they approach a certain cost limit for roaming, with a block placed on further usage unless authorised by the user.

The ITU said it advocated market-based solutions, including cultivating regional co-operation among operators and regulators, and encouraging them to reach agreements on lowering wholesale roaming tariffs.

They also recommended possible regulatory measures, such as placing caps on prices charged to consumers for mobile roaming.

Hamadoun Toure

Hamadoun Toure

“ITU member states agree on the need for international action on roaming charges,” said ITU secretary general, Hamadoun I. Touré. “This agreement is a clear indication of a willingness to address the issue for the good of both consumers and the global trade.”

Touré added that he believes 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.

According to the ITU, international roaming is, by nature, a multi-country issue and unified action from the international community is therefore the only way to address “bill-shock”.

Spokespeople from Vodacom and Cell C have previously said that they are actively trying to negotiate lower roaming charges.

One industry player, who asked not to be named, said that high wholesale local roaming rates are also used as a negotiating tactic to encourage international operators to lower the roaming rates it offers to South African customers.

Raised during WCIT in December 2012

These recommendations to address high international roaming will be among those raised at the World Conference on International Telecommunications (WCIT–12) in Dubai during December 2012, the ITU said.

It 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, the ITU said.

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