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Dsti/Iccp/Cisp(2014)6/Rev2 For Official Use DSTI/ICCP/CISP(2014)6/REV2 Organisation de Coopération et de Développement Économiques Organisation for Economic Co-operation and Development 04-Sep-2015 ___________________________________________________________________________________________ _____________ English - Or. English DIRECTORATE FOR SCIENCE, TECHNOLOGY AND INNOVATION COMMITTEE ON DIGITAL ECONOMY POLICY Use Official For DSTI/ICCP/CISP(2014)6/REV2 Cancels & replaces the same document of 18 May 2015 Working Party on Communication Infrastructures and Services Policy MONITORING THE COUNCIL RECOMMENDATION ON INTERNATIONAL MOBILE ROAMING SERVICES This Cancel and Replace has been done to incorporate footnote 7. Nothing else has been amended from the original version. This document is now superseded by DSTI/ICCP/CISP(2014)6/REV3. Sam Paltridge, Tel: +33 1 45 24 93 79, E-mail: [email protected] English JT03381266 Complete document available on OLIS in its original format - This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of Or. English international frontiers and boundaries and to the name of any territory, city or area. DSTI/ICCP/CISP(2014)6/REV2 Background The Council adopted, at its 1256 Session on 16 February 2012, a Recommendation on international mobile roaming (the Recommendation) [C(2012)7 )]. The Recommendation provides a set of policy principles to ensure effective competition, consumer awareness and protection, and a fair price level in international mobile roaming services and requested the Committee on Digital Economy Policy (CDEP, former Committee for Information, Computer and Communications Policy) to report back to Council within three years to assess progress in this area and monitor implementation of the Recommendation. The review commenced in 2014 and was completed in 2015. [At its June 2015 meeting, the CDEP approved the report set out in the Annex of this document and agreed to its transmission to the Council for declassification [DSTI/ICCP/CISP(2012)6/REV2].] The background report for the review was discussed by the Working Party on Communication Infrastructures and Services Policy on 9-10 December 2014. The Working Party also provided further information on Member country initiatives on roaming as well as views on the continued relevance of the Council Recommendation and whether further action was needed in this area via a questionnaire (Annex 2). Summary and Conclusions The results of the review are presented in the background report [DSTI/ICCP/CISP(2012)6/REV2] and in its Annex 2 which provides a summary of the responses received to the questionnaire. The report concludes that OECD countries which have adopted or are adapting policies to ensure effective competition or, in its absence, regulation addressing challenges in this area have found the Recommendation to be timely, useful and that it is still relevant. The large majority of countries explicitly referred to the positive influence of the Recommendation, which they used as a reference in developing practical approaches to increasing competition or pro-competitive regulation. Significant progress has been made in reducing international mobile roaming prices since 2012, either by ensuring effective competition or, in its absence, applying regulation. Of note, since the adoption of the Council Recommendation are offers from some mobile network operators of 'Roam Like at Home' (RLAH) plans which do not require purchasing 'add-ons' and rather use the subscriber's domestic mobile package. This could, if such offers develop more widely, help in resolving the problem of high mobile roaming prices. These offers are more prevalent in markets with four rather than three mobile network operators (MNOs), which is likely the result of the additional competition provided by more players. Many mobile network operators have introduced specific roaming packages as 'add-ons' to existing subscriber contracts, in particular for mobile data roaming, but prices still remain high and industry consolidation, in some countries, may reduce the competitive discipline from having a greater number of mobile network operators. In responding to the questionnaire, many European Union member states noted that the European Union roaming regulations had gone significantly further than the OECD Recommendation. However, many European Union countries also noted that for non-EU roaming destinations the OECD Recommendation was still valid. Some countries view that market forces, including technological solutions, will over time reduce high international roaming prices. Several new bilateral agreements, which have been concluded or are in the process of finalisation among OECD and non-OECD countries should lead to price reductions and also provide a paradigm for other countries to follow suit where there is insufficient competition. Some of these bilateral agreements have also been undertaken between countries with free trade arrangements and could provide a framework to follow for other regions with free trade arrangements. This could help alleviate some concerns that 2 DSTI/ICCP/CISP(2014)6/REV2 bilateral or regional agreements may have to be opened up to third parties as part of most favoured nation obligations. Finally, the review has demonstrated that there were two main views on the need for a modification or further monitoring of the Recommendation. Some countries believe that the Recommendation has or is meeting its objective and does not require modifications. Others, mostly but not entirely members of the European Union, believe that if any modifications were made, they would either involve further clarification or be in the form of an update subsequent to any changes made by the European Union to ensure harmonisation. Most countries believe further monitoring to be beneficial though some of these feel that this could be more effectively done through the biennial Digital Economy Outlook. For those that would like further developments to be reported back to Council they differ on the appropriate period though the majority felt two to three years to be suitable. Proposed Action In the light of above, the CDEP could: a) agree to the transmission of this report to the Council b) propose that the CDEP recommend to the Council to approve the inclusion of a question on progress on International mobile roaming in the 2016 questionnaire for the 2017 Digital Economy Outlook. This would invite member countries to indicate if any modifications to the Council recommendation were required and if so what they should be. In addition, the Committee should use the Digital Economy Outlook to provide an update on pricing trends and other relevant developments going forward. 3 DSTI/ICCP/CISP(2014)6/REV2 TABLE OF CONTENTS Main Points .................................................................................................................................................. 5 Introduction .................................................................................................................................................. 7 Recent Developments in IMR markets ........................................................................................................ 8 Prices ...................................................................................................................................................... 10 Tariffs ..................................................................................................................................................... 14 Roam Like at Home Pricing ................................................................................................................... 16 Price trends for data ................................................................................................................................ 20 Improving awareness and transparency ................................................................................................. 29 Wholesale and retail price regulation ..................................................................................................... 33 Assessment of costs and benefits ............................................................................................................... 36 Are the dynamics of the international roaming market changing? ......................................................... 37 ANNEX I. RECOMMENDATION OF THE COUNCIL ON INTERNATIONAL MOBILE ROAMING SERVICES .................................................................................................................................................... 42 ANNEX II. QUESTIONNAIRE REGARDING THE IMPLEMENTATION OF THE COUNCIL RECOMMENDATION ON INTERNATIONAL MOBILE ROAMING SERVICES ................................ 46 4 DSTI/ICCP/CISP(2014)6/REV2 MONITORING THE COUNCIL RECOMMENDATION ON INTERNATIONAL MOBILE ROAMING SERVICES1 Main Points The OECD Council adopted a Recommendation on international mobile roaming in 2012 and requested the Committee on Digital Economy Policy to report back to Council within three years to assess progress in this area and monitor implementation of the Recommendation. The objective of this document is to provide an overview of progress made in the implementation of the Recommendation in Member countries and to determine whether any further action is necessary in this area. The document was discussed by the Working Party on Communication Infrastructures and Services Policy on 9-10 December 2014. The Working
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