EU Roaming Cap Could Raise Domestic Rates
Back when the EU first said it wanted to take steps to cap the international roaming rates European mobile operators could charge their customers, we called it "balloon squeezing" -- meaning that they'd push rates down in one area, just to send them higher in another. Last week, Derek Kerton pointed out that this was likely to happen as operators simply raised rates for non-European roamers, but now a trade body of mobile operators says its members are looking at a 2.5 billion euro shortfall from the new price cuts, and could make it up by raising domestic rates. That would be the perfect outcome: the EU's action lowers rates for international travelers, but raises the rates everybody pays at home. Then what? More regulations, of course, leading to the EU establishing price controls for every single type of call.