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Consumers to be charged for receiving calls
Posted On 06/25/2008 10:20:30 by jamiekid
The European Union's telecom's chief has admitted the body is looking to implement changes that will see consumers being charged for mobile phone calls they receive, as well as the ones they make. The body has admitted it wants to modify the pricing model for the mobile phone industry to imitate that in the US. EU Telecoms Commissioner Viviane Reding thinks that rates in the mobile sector are too high and should be cut to around the same level as for fixed line rates to avoid cross-subsidy and cut consumer prices, Under the US "bill and keep" model, each mobile operator keeps all the money it has billed its customers for even if the call originated with another operator. The costs of routing calls are currently shared in complex systems of charges between operators. Reding admitted the model is appealing, but recognised that a wholesale shift would not happen overnight, according to her spokesman, Martin Selmayr, "It's up to the operators how they want to charge for receiving calls and whether they want to charge. It's the operators' decision," said Selmayr. If an operator decided to ask customers to pay for receiving calls as part of a more attractive overall package then Brussels would not forbid it, he added. US regulators have favoured the "bill and keep" model, claiming it encourages innovative pricing, resulting in lower consumer prices

Tags: Arent They Making Enough Profit



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Viewing 1 - 2 out of 2 Comments

From: anlee
06/26/2008 03:22:41
Well done reporting jamiekid!


From: rich999
06/25/2008 16:35:47

It also results in the most outrageously costly mobile phone system in the world!  In the USA, the coverage is shit and the bills much higher than in the EU!  Rich xxx

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