The Roam Like at Home regulation means a 60% decline in roaming revenue for European telecoms. In Poland, where prices are among the lowest in Europe, revenues for an infrastructure operator drop by PLN 180 million on average. This made the operators turn to the Office of Electronic Communications with requests for consent to the use of additional roaming charges in the EU. Additional Play, Orange, Plus and T-Mobile have already asked for additional fees. Find out more about Poland roaming below.
Current clients do not have to be afraid of high bills for services provided outside of Poland. The amount of additional fees is small, and the customer may withdraw from the contract if the operator charges additional fees.
However, it is worth remembering that subscribers purchasing a new contract do not have such a right.
– The EU Roam Like at Home principle means that the use of roaming services in the European Economic Area, and above all in the EU, is not free, but it should be on the same terms as we use services in the country, ie the prices of domestic services should be transferred to roaming. The exception is data transmission, where there are limits. In public space, unfortunately, there is a belief that roaming should be free or that it is free and nothing is paid for – you pay exactly the same rules as for domestic services – explains in a conversation with the agency Newseria Innowacje Marcin Cichy, President of the Office of Electronic Communications.
New regulations mean savings for customers, while for telecoms – severe losses. The EY report “Introduction of Roam Like at Home in Poland and other EEA countries” shows that the new law may mean a drop in operating profits (EBITDA) of European telecoms operating in the free trade area (EEA) to 7%. and a 60% decline in roaming revenues Therefore, some operators ask UKE for the possibility of maintaining additional service fees.
– Decision on the possibility of charging additional fees by telecommunications undertakings in the event that they incur losses exceeding 3%. EBITDs is a direct result of the provisions of the roaming regulation of 2012, as well as the executive regulations of 2016. It is the regulation of the European Parliament and the Council that in case of losses the entrepreneur may introduce additional fees and charge them to customers, while the entrepreneur decides how to consume this opportunity based on decisions issued by the President of UKE – says Marcin Cichy.
In June 2017, when domestic roaming began in force in the EU, some operators in Poland did not fully implement the new rule. However, in July UKE reported that 96 percent. mobile users use new charges in accordance with the “Roam Like at Home” principle. In Poland, where prices are among the lowest in Europe, and the average revenue per retail customer reaches six euros (60% less than the average revenue per customer in the EEA), unlimited tenders enjoy great popularity, regulations may even amount to PLN 180 million decrease in revenues. Despite this, not all operators decided to ask UKE for this.
– We granted such a right to eight virtual operators, these are small companies that operate at relatively low margins and are in the most difficult situation in terms of incurred roaming costs and losses. As for large, traditional infrastructure operators, we have four applications: from the Plus, Play, Orange and T-Mobile networks. In the case of the Plus and Play networks, we have already allowed fees to be increased according to a specific scenario, in the case of Orange the case is ongoing, the fourth operator, T-Mobile, has decided to ask the President of UKE for such consent at the latest – emphasizes the President of UKE.
Consent to additional fees does not necessarily mean high bills for customers for using services outside of the country. The amount of additional roaming charges collected by the operator may not be higher than the roaming costs incurred by the network. In addition, operators to which consents have been granted will be monitored by UKE. If it turns out that they use additional fees to earn, they may be penalized.
– Decisions are granted for a period of twelve months and the entrepreneur decides if and when they decide to implement them. Charges that will be payable, on average, PLN 0.10 for outgoing calls, PLN 0.04 for calls received while roaming and for sending SMS and PLN 0.20 for 1 MB of data transmission. Whether the entrepreneur decides to consume these fees and in what form depends on him, we set maximum prices – explains Marcin Cichy. (source)