Everyone who has used their mobile phone while travelling abroad knows how expensive it is. As costs do not seem to warrant such exorbitant prices when roaming, the European Commission has proposed to regulate them.
However, regulation is a delicate matter, and certain aspects of the Commission proposal can be questioned. For example what is the reason for choosing mobile termination rates (MTRs) as a benchmark for regulation at the wholesale level – and is peak or average MTR the better choice? Furthermore, why is a 30% mark-up on wholesale costs the proper size for regulating retail prices – should it be larger or smaller?
The European Parliament led by the Committee on the Internal Market and Consumer Protection (IMCO) feels that these and other similar questions have not been properly answered so far. Therefore, it has asked Copenhagen Economics to answer these questions such that its position on the Commission proposal may be an informed one.
For further information, please contact senior economist Christian Jervelund