Press Conference by           EU Commissioners Viviane Reding and  Meglena Kuneva

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The New EU Roaming Rules at a Glance. Texting abroad: no more than 0.11 per SMS as of 1 July 2009 Data roaming: anti-"bill shock" measures wholesale cap at 1 per Megabyte Voice roaming: by 2012, roamed calls abroad will cost no more than 0.34 per minute for calls made and 0.10 for calls rec

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Press Conference by EU Commissioners Viviane Reding and Meglena Kuneva

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2. The New EU Roaming Rules at a Glance Texting abroad: no more than €0.11 per SMS as of 1 July 2009 Data roaming: anti-”bill shock” measures + wholesale cap at €1 per Megabyte Voice roaming: by 2012, roamed calls abroad will cost no more than €0.34 per minute for calls made and €0.10 for calls received Principle of per second billing for all roaming calls (20% consumer savings) I am pleased to be here today with my colleague and friend, the EU’s Consumer Commissioner Meglena Kuneva to announce good news for 500 million consumers across the European Union: This afternoon, the European Commission has agreed to propose new roaming rules that should make it substantially cheaper to use a mobile phone when travelling abroad in the EU - whether for calls, SMS or surfing the web. Mobile consumers in the EU can expect from today’s Commission proposals: a reduction of 60% for text messages sent abroad as of 1 July 2009 more competitive and transparent data roaming charges a reduction of 20% for calls made and received abroad as of next year By 2012, a further reduction of 30% for calls made and received abroad. I would like to thank today Commission President Barroso, who has strongly and personally supported these new measures; and the college of Commissioners, that was unanimous today in backing my proposals. I am pleased to be here today with my colleague and friend, the EU’s Consumer Commissioner Meglena Kuneva to announce good news for 500 million consumers across the European Union: This afternoon, the European Commission has agreed to propose new roaming rules that should make it substantially cheaper to use a mobile phone when travelling abroad in the EU - whether for calls, SMS or surfing the web. Mobile consumers in the EU can expect from today’s Commission proposals: a reduction of 60% for text messages sent abroad as of 1 July 2009 more competitive and transparent data roaming charges a reduction of 20% for calls made and received abroad as of next year By 2012, a further reduction of 30% for calls made and received abroad. I would like to thank today Commission President Barroso, who has strongly and personally supported these new measures; and the college of Commissioners, that was unanimous today in backing my proposals.

3. New EU Roaming Rules: the single market objective Making the single market come true on the mobile phone bill of Europe’s 500 million consumers Sending text messages or surfing the web via a mobile phone while in another EU country should not be substantially more expensive for consumers than sending text messages or surfing the web at home. The underlying objective of the Commission proposals today is the single market without borders. The mobile industry has benefited enormously from this single market. This single market brought about freedom to provide telecoms services across borders, freedom of investment in the world’s largest economic area and, last but not least, the GSM standard, strongly supported by EU research and EU regulation. It is high time that also consumers can experience the positive results of this single market in their pockets. What the Commission wants to achieve is simple: Sending text messages or surfing the web via a mobile phone while in another EU country should not be substantially more expensive for a consumer than sending text messages or surfing the web at home. Consumers should feel at ease when sending an SMS from the beaches of Spain or while skiing in the mountains of Austria or Bulgaria. And business customers should be able to use data communications in the EU like their competitors are doing in the single market of the United States. Higher roaming charges abroad must be justified by additional costs of operators, or they will have to disappear. This European Commission is resolved to make the single market come true also on the mobile phone bills of every holiday maker, Erasmus student or business traveller.The underlying objective of the Commission proposals today is the single market without borders. The mobile industry has benefited enormously from this single market. This single market brought about freedom to provide telecoms services across borders, freedom of investment in the world’s largest economic area and, last but not least, the GSM standard, strongly supported by EU research and EU regulation. It is high time that also consumers can experience the positive results of this single market in their pockets. What the Commission wants to achieve is simple: Sending text messages or surfing the web via a mobile phone while in another EU country should not be substantially more expensive for a consumer than sending text messages or surfing the web at home. Consumers should feel at ease when sending an SMS from the beaches of Spain or while skiing in the mountains of Austria or Bulgaria. And business customers should be able to use data communications in the EU like their competitors are doing in the single market of the United States. Higher roaming charges abroad must be justified by additional costs of operators, or they will have to disappear. This European Commission is resolved to make the single market come true also on the mobile phone bills of every holiday maker, Erasmus student or business traveller.

4. Why does the EU act now? In 2007, the European Parliament called on the Commission and national regulators to monitor prices for SMS and data roaming “Review clause” in EU Roaming Regulation: In 2008, the Commission must propose whether regulation for these services is required I regret that I have to present to you new EU roaming rules today. I am a Christian democrat, and I believe that in a functioning telecoms market, EU intervention should be neither necessary nor desirable. This was also the initial belief of the European Parliament. When the Parliament voted in favour of the first EU Roaming Regulation in May 2007 – the regulation that brought down the price for making and receiving roaming calls by 60% –, it decided also not to include, for the time being, SMS and data roaming, but to give the industry one year time for self-regulation. The European Parliament said already in 2007 very clearly that it would come back to the matter in 2008. It therefore inserted a review clause in the Roaming Regulation that requires the Commission to decide in 2008, on the basis of new market data given by national telecoms regulators, whether further regulation was necessary. In February this year, at the GSM congress in Barcelona, I reminded the mobile industry of this “grace period”. I also told them very explicitly, in my usual quiet manner, that the deadline for seeing substantial changes in SMS and data roaming charges was 1 July 2008. Unfortunately, the industry did not listen. No substantial move took place with regard to roaming charges. I deplore that the industry that once has been the driver of innovation and competitiveness has chosen to retreat now into a “bunker mentality”. The market does not function. This leaves the Commission no choice but to intervene again. I regret that I have to present to you new EU roaming rules today. I am a Christian democrat, and I believe that in a functioning telecoms market, EU intervention should be neither necessary nor desirable. This was also the initial belief of the European Parliament. When the Parliament voted in favour of the first EU Roaming Regulation in May 2007 – the regulation that brought down the price for making and receiving roaming calls by 60% –, it decided also not to include, for the time being, SMS and data roaming, but to give the industry one year time for self-regulation. The European Parliament said already in 2007 very clearly that it would come back to the matter in 2008. It therefore inserted a review clause in the Roaming Regulation that requires the Commission to decide in 2008, on the basis of new market data given by national telecoms regulators, whether further regulation was necessary. In February this year, at the GSM congress in Barcelona, I reminded the mobile industry of this “grace period”. I also told them very explicitly, in my usual quiet manner, that the deadline for seeing substantial changes in SMS and data roaming charges was 1 July 2008. Unfortunately, the industry did not listen. No substantial move took place with regard to roaming charges. I deplore that the industry that once has been the driver of innovation and competitiveness has chosen to retreat now into a “bunker mentality”. The market does not function. This leaves the Commission no choice but to intervene again.

5. Current situation - SMS Roaming charges unchanged since 2007: SMS average is around 29 cent Roamed SMS can cost 10 times higher than texting at home No justification for high prices if we look at operators’ real costs (less than 1 cent) Let us first of all have a look at the situation of SMS roaming charges. Text messaging is universally popular among EU citizens who spent €800 million on text messages in 2007. Over the past year we have noted that the prices for roamed SMS have remained unchanged. Already in 2007, the average price per roamed SMS was 29 cent – up to 10 times higher than domestic SMS prices. Today, we see that the average price per roamed SMS is – still 29 cent. If we look at prices on the Commission’s Roaming website, which we have updated today with new tariffs, we still find that French citizens on holidays in Italy are paying 30 cents per roamed SMS Irish citizens can pay up to 39 cents per SMS sent from Italy. Fellow Czechs pay 42 cents for an SMS sent from holidays in Italy. And a Belgian customer roaming abroad can end up paying 75 cents for one SMS Not only do these prices have no relation to the real cost for the operator of sending an SMS but they cannot be explained by the underlying costs. The underlying cost for a roamed SMS is less than 1 cent per message according to a recent study by the Danish telecoms regulator.Let us first of all have a look at the situation of SMS roaming charges. Text messaging is universally popular among EU citizens who spent €800 million on text messages in 2007. Over the past year we have noted that the prices for roamed SMS have remained unchanged. Already in 2007, the average price per roamed SMS was 29 cent – up to 10 times higher than domestic SMS prices. Today, we see that the average price per roamed SMS is – still 29 cent. If we look at prices on the Commission’s Roaming website, which we have updated today with new tariffs, we still find that French citizens on holidays in Italy are paying 30 cents per roamed SMS Irish citizens can pay up to 39 cents per SMS sent from Italy. Fellow Czechs pay 42 cents for an SMS sent from holidays in Italy. And a Belgian customer roaming abroad can end up paying 75 cents for one SMS Not only do these prices have no relation to the real cost for the operator of sending an SMS but they cannot be explained by the underlying costs. The underlying cost for a roamed SMS is less than 1 cent per message according to a recent study by the Danish telecoms regulator.

6. Current situation - SMS This chart presents an overview of SMS charges across the 27 EU Member States. You see from this chart that SMS roaming charges are in all EU countries very high - substantially than their average domestic price of 6 cent. SMS roaming charges are particularly high for travellers from Belgium, Germany, Netherlands, Portugal and Spain - with the latter even exceeding 40 cents on average. This chart presents an overview of SMS charges across the 27 EU Member States. You see from this chart that SMS roaming charges are in all EU countries very high - substantially than their average domestic price of 6 cent. SMS roaming charges are particularly high for travellers from Belgium, Germany, Netherlands, Portugal and Spain - with the latter even exceeding 40 cents on average.

7. Commission proposal – SMS The price per SMS an operator charges another at the wholesale level should not exceed 4 cent The charge for an SMS at the retail level for all EU citizens should not exceed 11 cent (excl. VAT) To get rid of these exorbitant charges for roamed SMS that violate the EU’s single market principle, the Commission is proposing today to cap SMS roaming charges both at wholesale and retail level: The charge between operators, at the wholesale level, should not exceed 4 cents. At the retail level, the price for consumers should not exceed 11 cents (VAT not included). We are proposing that these benefits should reach EU citizens as of 1 July 2009, thus in time for next year’s summer holidays. The basis for these price caps are the unanimous recommendations of the European Regulators Group (ERG), the body that comprises the 27 national telecoms regulators. I will now pass the floor to Commissioner Kuneva who will explain another important aspect of the Commission proposal. To get rid of these exorbitant charges for roamed SMS that violate the EU’s single market principle, the Commission is proposing today to cap SMS roaming charges both at wholesale and retail level: The charge between operators, at the wholesale level, should not exceed 4 cents. At the retail level, the price for consumers should not exceed 11 cents (VAT not included). We are proposing that these benefits should reach EU citizens as of 1 July 2009, thus in time for next year’s summer holidays. The basis for these price caps are the unanimous recommendations of the European Regulators Group (ERG), the body that comprises the 27 national telecoms regulators. I will now pass the floor to Commissioner Kuneva who will explain another important aspect of the Commission proposal.

8. Voice roaming: One year after Prices are up to 60% lower thanks to the EU Roaming Regulation of 2007 Still, most prices are very close to the maximum allowed ceilings No signs of sustainable competition (Commissioner Kuneva) Thanks, Viviane. I would like to talk to you about what the Commission has decided today on voice roaming. As you know, voice roaming is already regulated by the EU since 30 June 2007. Although the Commission does not generally intervene in market prices, it was felt that this market faced serious structural problems that resulted in excessive roaming charges and significant detriment to consumers. Today, the so-called “Eurotariff” introduced by the first Roaming Regulation ensures that a roamed call abroad can cost not more than 46 cent per minute (excl. VAT), while a call received while roaming must not cost more than 22 cent per minute (excl. VAT). Consumers are also regularly informed by SMS about the cost of roaming charges when they travel abroad. As a result of the intervention last year millions of EU citizens have benefited from the Eurotariff. Consumers have experienced reductions of 60% since the Regulation entered into force. However, the news is not all good. Prices seem to have clustered very close to the maximum allowed ceilings. This is despite the fact that the Regulation gives ample room for operators to compete and innovate. Competition is not yet effective in the roaming market, and certainly not sustainable. (Commissioner Kuneva) Thanks, Viviane. I would like to talk to you about what the Commission has decided today on voice roaming. As you know, voice roaming is already regulated by the EU since 30 June 2007. Although the Commission does not generally intervene in market prices, it was felt that this market faced serious structural problems that resulted in excessive roaming charges and significant detriment to consumers. Today, the so-called “Eurotariff” introduced by the first Roaming Regulation ensures that a roamed call abroad can cost not more than 46 cent per minute (excl. VAT), while a call received while roaming must not cost more than 22 cent per minute (excl. VAT). Consumers are also regularly informed by SMS about the cost of roaming charges when they travel abroad. As a result of the intervention last year millions of EU citizens have benefited from the Eurotariff. Consumers have experienced reductions of 60% since the Regulation entered into force. However, the news is not all good. Prices seem to have clustered very close to the maximum allowed ceilings. This is despite the fact that the Regulation gives ample room for operators to compete and innovate. Competition is not yet effective in the roaming market, and certainly not sustainable.

9. Commission proposal – voice calls Price caps prolonged until 2013 Per minute prices to decrease: from 46 cent to 34 cent for calls made (1 July 2012) from 22 cent to 10 cent for calls received (1 July 2012) Reduction every year by 3 cent Always as of 1 July This is why the Commission has concluded today that we cannot let the Roaming Regulation expire on 30 June 2010, as initially planned. We need to extend the Regulation by a further three years, up to 30 June 2013. This should allow sufficient time for the market and technological developments to create the conditions for competition to develop. By July 2012, the maximum price ceilings will continue to fall from the current 46 cent for making a call to 34 cent. The same will also apply for receiving calls. The price caps will go down gradually from the current 22 cent to 10 cent per minute by July 2012. As an additional measure asked for by many consumers during the Commission’s public consultation from May to July this year, we also decided today to bring forward the date of roaming price reductions from 30 August to 1 July. Consumers should benefit from lower charges right at the beginning of their summer holidays, and not at the end.This is why the Commission has concluded today that we cannot let the Roaming Regulation expire on 30 June 2010, as initially planned. We need to extend the Regulation by a further three years, up to 30 June 2013. This should allow sufficient time for the market and technological developments to create the conditions for competition to develop. By July 2012, the maximum price ceilings will continue to fall from the current 46 cent for making a call to 34 cent. The same will also apply for receiving calls. The price caps will go down gradually from the current 22 cent to 10 cent per minute by July 2012. As an additional measure asked for by many consumers during the Commission’s public consultation from May to July this year, we also decided today to bring forward the date of roaming price reductions from 30 August to 1 July. Consumers should benefit from lower charges right at the beginning of their summer holidays, and not at the end.

10. Commission proposal – per second billing The “hidden charge”: Today, consumers pay on average 24% too much for roamed calls abroad 19% for calls received abroad A single market problem: Per second billing normal for national calls Per second billing to apply: at the latest after the first 30 seconds immediately for calls received When we made the first Roaming Regulation, we took it for granted that operators would charge for roaming calls by the second, as this is normal for calls within a Member State. However, far from true! The Commission and national telecoms regulators discovered in recent months that many mobile operators charge by the minute, and not by the second – thereby clearly diluting the beneficial effects of the roaming price caps for consumers. This hidden charge represents on average 20% on consumer bills and can go up to 52%, as can be seen from the following chart. When we made the first Roaming Regulation, we took it for granted that operators would charge for roaming calls by the second, as this is normal for calls within a Member State. However, far from true! The Commission and national telecoms regulators discovered in recent months that many mobile operators charge by the minute, and not by the second – thereby clearly diluting the beneficial effects of the roaming price caps for consumers. This hidden charge represents on average 20% on consumer bills and can go up to 52%, as can be seen from the following chart.

11. “Hidden charges” per country You can see from this chart that the operators in most Member States overcharge their customers. Only consumers in Cyprus and Greece benefit from fully transparent charges. The situation is particularly pronounced for Malta, Bulgaria, Czech Republic, Hungary and Netherlands. This practice of overcharging cannot be tolerated. We also do not allow that you take the train from Brussels to Paris and are then charged for a ticket from Brussels to Rome. We therefore propose to make the principle of per second billing compulsory in the new EU roaming regulation. For calls made abroad, this principle should apply at the latest after 30 seconds, to allow for a set-up charge as it is common in several EU countries. For calls received, per second billing will apply immediately, as from the first second. I hope that these new measures will be a wake up call that markets are expected to work for consumers. I will now pass the floor back to Commissioner Reding to talk about today’s proposals for data roaming. You can see from this chart that the operators in most Member States overcharge their customers. Only consumers in Cyprus and Greece benefit from fully transparent charges. The situation is particularly pronounced for Malta, Bulgaria, Czech Republic, Hungary and Netherlands. This practice of overcharging cannot be tolerated. We also do not allow that you take the train from Brussels to Paris and are then charged for a ticket from Brussels to Rome. We therefore propose to make the principle of per second billing compulsory in the new EU roaming regulation. For calls made abroad, this principle should apply at the latest after 30 seconds, to allow for a set-up charge as it is common in several EU countries. For calls received, per second billing will apply immediately, as from the first second. I hope that these new measures will be a wake up call that markets are expected to work for consumers. I will now pass the floor back to Commissioner Reding to talk about today’s proposals for data roaming.

12. Current situation – data roaming Prices still very high: 5.40 Euro per Megabyte (EU average) Data roaming prices range from €0.25 to over €16 per MB “Bill shock” and high wholesale charges remain a serious problem (Commissioner Reding) Thanks, Meglena. We now turn to data roaming charges - the prices paid for using your mobile phone to surf the web, to download a song or to send an e-mail. Here, we had hoped that the dynamics of the market and political pressure would enable us to stay away from regulation. It is true that some prices have recently started to fall. However, they are still extremely high. Mostly because of very high wholesale charges, there are operators still charging consumers 16 Euros per MB. This allows you just to read two newspaper articles via your mobile connection. A particularly worrying phenomenon are ‘bill shocks’, which occur when a consumer uses his mobile connection abroad as if he was at home. We have heard about such bill shocks many times, as many EU citizens have written to us. Some of the even made headlines themselves. (Commissioner Reding) Thanks, Meglena. We now turn to data roaming charges - the prices paid for using your mobile phone to surf the web, to download a song or to send an e-mail. Here, we had hoped that the dynamics of the market and political pressure would enable us to stay away from regulation. It is true that some prices have recently started to fall. However, they are still extremely high. Mostly because of very high wholesale charges, there are operators still charging consumers 16 Euros per MB. This allows you just to read two newspaper articles via your mobile connection. A particularly worrying phenomenon are ‘bill shocks’, which occur when a consumer uses his mobile connection abroad as if he was at home. We have heard about such bill shocks many times, as many EU citizens have written to us. Some of the even made headlines themselves.

13. “Bill shocks” are common What you see here is just an example of these data roaming charges. In this case it was one movie download for - 5,000 British Pound. One UK citizen received a bill of 40,000 Euro for downloading the TV programme “Prison Break”. I myself have received a complaint from a citizen who received a bill of 59,000 Euro from a citizen who was roaming for 21 days while abroad. Such bills clearly do not encourage any citizen, be it the business traveller or tourist to use data services abroad. What you see here is just an example of these data roaming charges. In this case it was one movie download for - 5,000 British Pound. One UK citizen received a bill of 40,000 Euro for downloading the TV programme “Prison Break”. I myself have received a complaint from a citizen who received a bill of 59,000 Euro from a citizen who was roaming for 21 days while abroad. Such bills clearly do not encourage any citizen, be it the business traveller or tourist to use data services abroad.

14. Current situation – data roaming This slide shows how high data roaming charges can be in many EU countries. The average EU price is now at 5.40 Euro per Megabyte. This can go up to 10 Euro or higher in Italy, Poland and Slovakia. It is no wonder that there is this phenomenon of ‘bill shock’. This slide shows how high data roaming charges can be in many EU countries. The average EU price is now at 5.40 Euro per Megabyte. This can go up to 10 Euro or higher in Italy, Poland and Slovakia. It is no wonder that there is this phenomenon of ‘bill shock’.

15. Commission proposal – data Improved transparency to inform and empower customers on usage of data services Basic information to be provided immediately Customer to be able to set a cut-off limit Wholesale safeguard cap of €1 per MB Lack of transparency and competition is at the heart of the problem of high data roaming charges. The Commission therefore decided today to tackle this issue with three concrete measures: First of all, consumers need to be informed about data roaming charges before they travel to another EU country. Secondly, consumers should have the right to choose an individual cut-off limit. Once a certain amount of money is reached, the data connection will be terminated. Thirdly, the Commission is proposing to set a wholesale cap of €1 per Megabyte. Such a ceiling is sufficiently low to address the bill shock problem while being sufficiently above some current market offers to avoid disruption of competitive forces. We of course expect that operators will compete substantially below this safety level. I note well that there are already wholesale offers available in the market of 25 cent per Megabyte!Lack of transparency and competition is at the heart of the problem of high data roaming charges. The Commission therefore decided today to tackle this issue with three concrete measures: First of all, consumers need to be informed about data roaming charges before they travel to another EU country. Secondly, consumers should have the right to choose an individual cut-off limit. Once a certain amount of money is reached, the data connection will be terminated. Thirdly, the Commission is proposing to set a wholesale cap of €1 per Megabyte. Such a ceiling is sufficiently low to address the bill shock problem while being sufficiently above some current market offers to avoid disruption of competitive forces. We of course expect that operators will compete substantially below this safety level. I note well that there are already wholesale offers available in the market of 25 cent per Megabyte!

16. “Roaming II” Regulation - roadmap Today: Commission Proposal adopted, transmitted to EP and Council Political Agreement in Council: under French presidency Adoption: before European Parliament elections (June 2009) Entry into Force: 1 July 2009 Next Review: 2011 Let me conclude with some words about procedure: What the Commission adopted today is a legislative proposal to amend the existing EU Roaming Regulation. This legislative proposal will be transmitted today to the European Parliament and to the Council of Ministers. I am confident that the European Parliament will be able to work quickly on the Commission proposal. I myself will present the proposal this afternoon to the Industry Committee of the European Parliament. In the Council of Ministers, we expect to achieve political agreement on the new roaming rules by the end of the year. I have already spoken with France’s telecoms Minister Luc Chatel, and we will both work together with the European Parliament to stick to a very ambitious time table. Our common objective is an adoption of the new roaming rules before the European Parliament elections in June 2009. This would mean that European consumers could already start to benefit by summer next year from substantially reduced roaming charges for voice, sms and data. Let me finally say that these new roaming rules will not be the end of the matter. We have inserted a clause into today’s proposal that will require the EU to come back to roaming in 2012. I seriously hope that in 2012, we will have solved Europe’s single market problems in telecoms. Because excessive roaming charges are only a very drastic symptom of the lack of a single market in telecoms. I therefore hope that tomorrow, the European Parliament, in its vote on the EU Telecoms Reform, will endorse strong and efficient instruments to bring about the single market. This could allow us to lift the roaming regulation in 2012. Let me conclude with some words about procedure: What the Commission adopted today is a legislative proposal to amend the existing EU Roaming Regulation. This legislative proposal will be transmitted today to the European Parliament and to the Council of Ministers. I am confident that the European Parliament will be able to work quickly on the Commission proposal. I myself will present the proposal this afternoon to the Industry Committee of the European Parliament. In the Council of Ministers, we expect to achieve political agreement on the new roaming rules by the end of the year. I have already spoken with France’s telecoms Minister Luc Chatel, and we will both work together with the European Parliament to stick to a very ambitious time table. Our common objective is an adoption of the new roaming rules before the European Parliament elections in June 2009. This would mean that European consumers could already start to benefit by summer next year from substantially reduced roaming charges for voice, sms and data. Let me finally say that these new roaming rules will not be the end of the matter. We have inserted a clause into today’s proposal that will require the EU to come back to roaming in 2012. I seriously hope that in 2012, we will have solved Europe’s single market problems in telecoms. Because excessive roaming charges are only a very drastic symptom of the lack of a single market in telecoms. I therefore hope that tomorrow, the European Parliament, in its vote on the EU Telecoms Reform, will endorse strong and efficient instruments to bring about the single market. This could allow us to lift the roaming regulation in 2012.

18. Back up slides

19. Size of the EU Roaming Market The EU market for mobile roaming services can be divided into voice services, SMS and broadband data services. The three segments together in 2007 accounted for €6.54 billion in revenues. This corresponds to approximately 4.7% of the total EU mobile market, which is estimated at €137 billion. Voice services constituted 79.1% (€5.17 billion) of the overall roaming market in 2007, SMS 12.3% (€0.80 billion) and broadband data 8.6% (€0.56 billion). Based on our analysis, volumes for voice roaming have increased through the reductions in price. This has also been confirmed to me by operators I have met. We also expect that there will also be an increase in the use of SMS services and in particular data services which will exceed SMS services in terms of revenues. The EU market for mobile roaming services can be divided into voice services, SMS and broadband data services. The three segments together in 2007 accounted for €6.54 billion in revenues. This corresponds to approximately 4.7% of the total EU mobile market, which is estimated at €137 billion. Voice services constituted 79.1% (€5.17 billion) of the overall roaming market in 2007, SMS 12.3% (€0.80 billion) and broadband data 8.6% (€0.56 billion). Based on our analysis, volumes for voice roaming have increased through the reductions in price. This has also been confirmed to me by operators I have met. We also expect that there will also be an increase in the use of SMS services and in particular data services which will exceed SMS services in terms of revenues.

20. Impact of the new EU Roaming Rules SMS reduction – consumer benefits of over €1.2 billion Per-second billing – Consumer gains of nearly €1 billion per year Data – consumers to be able to make fully informed choice and volumes expected to increase considerably The detailed impact assessment that accompanies our proposals shows that consumers will gain considerably from the new EU roaming rules. For SMS, we expect consumer gains to amount to over €1.2 billion. Per-second billing will result in cost-savings to consumers of over € 1 billion. But also operators will win: we have analysed the Roaming Market in considerable detail. Both national telecoms regulators and the Commission believe that people will text and download data substantially more abroad. In the end, as President Barroso said today, lower roaming charges can be a win-win-situation for consumers and operators alike.The detailed impact assessment that accompanies our proposals shows that consumers will gain considerably from the new EU roaming rules. For SMS, we expect consumer gains to amount to over €1.2 billion. Per-second billing will result in cost-savings to consumers of over € 1 billion. But also operators will win: we have analysed the Roaming Market in considerable detail. Both national telecoms regulators and the Commission believe that people will text and download data substantially more abroad. In the end, as President Barroso said today, lower roaming charges can be a win-win-situation for consumers and operators alike.

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