EU Parliament Steps In To Reduce Overseas Mobile Phone Charges
The European Union have again flexed their muscles in a move which has sent shock waves throughout the Mobile Phone industry - but who will be the real winner?
The EU recently announced plans to introduce a limit on the so called “roaming†charges in the mobile phone industry - these are the fees that local operators charge each other to ensure worldwide coverage. These “roaming†charges are now a massive part of overseas call charges, and the impact on the income of mobile phone companies has been substantial.
After a long investigation into the industry, the EU have forced through “roaming†price reductions of up to 75% - saving mobile phone users millions of pounds!
However, this may not be the end of the story with many market observers expecting an increase in local charges for domestic calls - another case where over regulation may not be beneficial to the everyday user. The problem is that many of these major mobile phone companies who have, and continue to invest millions of pounds into new technology, also have shareholders to keep happy. The mobile majors will not step back and accept reduced profitability - they will make up the short fall in some way.
As the UK market is over crowded at the moment, with millions of mobile phones in circulation, we may soon be waving good bye to cheap handsets, and overly generous payment plans. The dynamics of the industry are changing and never has it been more beneficial to shop around.
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