A brief note on roaming costs and profit margins

A brief note on roaming costs and profit margins

April 13, 2015

In February 2007, the European Parliament’s committee on Internal Market and Consumer Protection (IMCO) issued an opinion on the European Commission’s proposal to regulate international roaming. The opinion of the IMCO drew on a study by Copenhagen Economics. Shortly after the IMCO had presented its opinion, A.T. Kearney issued a study commenting on two specific issues in the Copenhagen Economics study, namely the size of the roaming specific costs at wholesale level and the size of the profit mark-up over retail costs on retail level. In their study, A.T. Kearney argues that both the roaming specific costs and the profit mark-up are higher than estimated by Copenhagen Economics.

However, A.T. Kearney’s arguments are invalid; hence the A.T. Kearny reply does not change our previous recommendations on regulating prices on international roaming. Please find our reply here

 

 

For further information, please contact Christian Jervelund