Roam Like at Home: Balancing Political Objective with Heterogeneity of Mobile Costs and Usages in Europe

Posted: 23 Oct 2015 Last revised: 31 Jan 2018

See all articles by Laure Jaunaux

Laure Jaunaux

ORANGE - European Regulatory Affairs

Philippe Deniau

ORANGE

Marc Lebourges

Orange Regulatory Affairs

Multiple version iconThere are 2 versions of this paper

Date Written: September 21, 2015

Abstract

This paper analyses the consequences on European markets of the introduction of “Roam Like at Home” (RLAH) obligation, which prohibit any price surcharge for roaming usage within EU. It demonstrates that RLAH cannot be achieved while ensuring both the profitability of retail roaming prices in home markets and the profitability of wholesale roaming prices in visited markets. Roaming retail profitability becomes economically irrelevant as under RLAH, roaming becomes a component of mobile national activity and RLAH is generally sustainable in Europe under current wholesale roaming regulation. Wholesale roaming providers must recover the fully allocated costs of providing the service to avoid undermining the sustainability of national markets. Wholesale roaming regulation can be justified only if the market is not competitive. But regulation on wholesale roaming markets would not erase the heterogeneity of mobile costs and usage in Europe, which is the reason why in a few national mobile markets widely departing from European averages, regulation should allow a limited departure from pure RLAH obligation.

Keywords: Teolecommunications, International roaming

JEL Classification: L5, L96

Suggested Citation

Jaunaux, Laure and Deniau, Philippe and Lebourges, Marc, Roam Like at Home: Balancing Political Objective with Heterogeneity of Mobile Costs and Usages in Europe (September 21, 2015). Available at SSRN: https://ssrn.com/abstract=2677258 or http://dx.doi.org/10.2139/ssrn.2677258

Laure Jaunaux

ORANGE - European Regulatory Affairs ( email )

Paris
France

Philippe Deniau

ORANGE ( email )

78, rue Olivier de Serres
Paris Cedex 15, 75505
France

Marc Lebourges (Contact Author)

Orange Regulatory Affairs ( email )

78 rue Olivier de Serres
Paris
France

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