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Jan. 17, 2008

On Dec. 15 Telefonica just announced new plans to reduce mobile data roaming fees across its European operations by as much as 40 percent.

Starting next month, Telefonica's mobile units O2 and Movistar will implement the changes in the Czech Republic, Germany, Ireland, Spain and the UK.

The move will reduce the cost of sending a text message home from anywhere in the European Union down to about 48 cents.

Telefonica Chairman and CEO Matthew Key said "today's announcement honors the promise we made to customers that, having reduced the cost of calling while abroad, we would bring down the last barrier in roaming charges and that's data."

Telecoms Analyst Emeka Obiodu at Global Insight said "as for helping Telefonica's business, although lower-cost text messages are hardly going to persuade the big spenders to switch suppliers, Telefonica expect it to sway the prepaid market and those medium spenders about to renew their contracts."

Obiodu also added "these proposed price cuts could result in more voluntary price reductions and could help avoid the bickering that would ensue if the European Union Commission attempts to impose data cost caps similar to the roaming caps imposed in 2007."

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Source: Wireless Week

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