European mobile operators brace for end of roaming charges

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AFP, Paris :
Long an important source of revenue for telecom companies, roaming charges will be lifted in Europe starting June 15, raising pressure on operators in a tight market.
Roaming charges within and outside Europe account for an average of around five percent of sales for telephone operators in Europe, estimates Sylvain Chevallier of BearingPoint. But the impact of the new measure will differ for corporate and individual clients, he adds.
On the Spanish market, subject to wide seasonal variations in business due to a reliance on tourism, Telefonica estimates the end of roaming charges in the EU will lead to a 1.2 percent drop in its sales this year.
But the change can hardly come as a shock for telecom operators, according to Victor Marcais of Roland Berger, who noted the plans have been in the works for several years and are “largely anticipated”.
“If the operators are not ready, it will be more their fault than anything else,” said Dexter Thillien, analyst with BMI Research. “It has been very gradual.” Still, telephone operators are taking different approaches as they gear up for the change.
In Italy, for example, Wind-Tre says it implemented the European requirements two months early, while its rival TIM said it would adhere to the new rules the day they come into effect.
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