Who will pay the costs of scrapping EU roaming?

The media was awash yesterday with the results of a recent European Commission survey that more than 1 in 4 people switch off their mobile phones when travelling in Europe and outside of their home country.

At Amiigo we think it is great news that legislation is going through to scrap roaming charges within Europe. We set up the business and built the Amiigo app as a way of cutting the cost of roaming as we believe the costs have been, and still are, way too high.

At the moment I don’t know how many of those polled were business users (I’m sure I could find out but not sure its really worth the bother!!) but lets use the figures contained within the survey to assess the impact.

1 in 10 reduce their use of email

I get a lot of email. Admittedly a big chunk is either crap or social media related but that still leaves a fair amount. Part of this will need a prompt response as people enquire about saving money, as I work with our partners to provide their clients with savings etc. There is a danger that limiting your use of email to when you can get a wifi signal (otherwise known as back in your hotel or at lunch in a coffee shop) could mean losing out on business.

30% don’t make phone calls

Whilst I am sure that this won’t be the case for most business users (after all the user isn’t paying the bill – that’s the responsibility of the IT Director or the FD), worrying about the cost of these calls may mean some business users, particularly those within small businesses, may hesitate in making calls and this could lead to the same result: a loss of business.

Of course there is the option of waiting for wifi and using Skype?

Who’s going to pay?

We recently blogged about the revenue likely to be generated by roaming charges for data.  If call costs are added to this, there will be a big hole in the finances of the mobile operators.  They will want to make that up somewhere; the question is where?

In my opinion it will occur in the following ways:

  1. the cost of roaming outside the EU will increase dramatically
  2. the investment in infrastructure will slow down
  3. the cost of your contract will go up

They are not going to walk away from £26bn.

What are your thoughts on where they will make up this money?

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