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Governments to regulate international roaming services?

According to the OECD, international roaming services are overpriced and should be curbed by government regulation.
07/04/2010

According to the Organisation for Economic Co-Operation and Development (OECD), international roaming services are overpriced and should be curbed  by government regulation.

A recent OECD report, International Mobile Roaming Services: Analysis And Policy Recommendations,  says that mobile phone carriers are exploiting an apparant lack of consumers awareness of international roaming services. It also found that there are limited alternatives and little scope for consumers to contest the roaming charges with mobile carriers.

The OECD propose that direct government regulation via multilateral agreements is the most viable way to limit international roaming charges. Government intervention would work to protect mobile phone users but also to  facilitate travel and trade.

The report says that bilateral agreements may be used as a short term means to promote international co-operation but multilateral agreement is ultimately the most efficient means to control gobal roaming charges.

"A multilateral approach, that is, having a framework agreement to which countries could adhere, may be less resource demanding than multiple bi-lateral agreements in terms of the effort required for agreeing on it, although it will need to gather agreement from many countries," says the OECD.

In 2008, the Australian Telecommunications Users Group (ATUG) challenged expensive international roaming charges in a 'Roam Fair' campaign aimed at mobile phone companies. The Australian House of Representatives responded to the campaign urging the government to limit international roaming fees via international agreements. The House also asked the ACCC to impose mandatory declaration of all international roaming information for all mobile phone carriers.

Unfortunately, little has been done to solve the problem. Last year, the  Australian government  merely promised to 'explore' the prospect of international agreements on global roaming services but have done nothing else to date. This perhaps indicates a serious lack of government and consumer power in the face of powerful companies such as VHA, Virgin, Optus and Telstra.

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