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This article delves into the implementation of EU roaming regulations in Lithuania, covering the legislation process, challenges faced, and key takeaways for the future. It explores the legislative framework, problems encountered during implementation, and valuable lessons learned to enhance the roaming services. The text also discusses the transition to Roam Like at Home (RLAH), regulatory directives, and industry responses to the changes. Discover the intricate details of the regulatory shift and its impact on the telecommunications sector in Lithuania.
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Content: 1. Legislation 2. Implementation 3. Problems 4. Lessons to learn
Legislation Roaming regulation III: -Regulationof voice, SMS, dataservices -Retail and wholesale -Decoupling of retailroaming services -Thedifferencebetweenroaminganddomesticchargesshould be eliminated Roaming regulation IV: -Regulationof voice, SMS, data -Retail and wholesale -Decoupling of roaming services -Introduction of Roam Like at Home (RLAH) -Transitionalperiod to RLAH
Legislation Transitional period to RLAH: -Retailroamingcharges= domestic charges+wholesale charge for voice/SMS/data services -Prices for retail calls received are caped at 1,14 euroct/min. Commission implementing regulation: -laysdownconditions to implement RLAH -setsprinciplesforapplicationofFairUsePolicy (FUP) -setsrequirementsforsustainabilitytest (calculation, application, implementation)
Legislation Switch to RLAH: Formalagreementofnewwholesaleroamingcharges BEREC guidelinesonroamingregulation: -interpretationofroamingregulationrules
Implementation: prices • One service provider started offering RLAH roaming communication services in Nordic countries in spring 2016. • Another service provider started offering RLAH data services for all EU countries in summer 2016. • Take up was not huge, but usage shot up… • Initially services were not used the operators planed -> export of SIM cards to Lithuanian families in Nordic countries/heavy usage by truckdrivers. • After application of FUP, usage decreased but still above pre-RLAHtimes.
Implementation: preperation for RLAH • Talkswithoperatorsregardingimplementationof RLAH fromthebeginningof 2017. • Severalmeetingsoninterpretationofthe FUP, sustainabilitytestand BEREC guidelines. • Alloperatorssubmittedapplicationforright to applysurcharge. • Alloperatorsindicated a negativeretail roaming margin > 3 % of mobile service EBITDA. • RRT currently is investigating applications.
Problems • Everyroamingserviceunitprovidedwould be lossmaking. • Revenuesfrominboundtrafficwouldnotcoverthelosses. • Operatorshavedifferentcoststructuresanddifferentpositioning. • Operatorsdonotwant to be „thebadguise“, but... • Shareholdersdemandincreasingrevenuesandprofits. Theproblems: a) how to satisfyshareholders, thepolicymakersandcustomers; b) howwillreactthecompetitor.
Lessons to lear • Operators should be allowed to recover their costs. • Services should not be crosssubsidised. • Customers should not be promissed what they might not get.