1. ©Ofcom The Review of the Roaming Regulation I/ERG’s views John Doherty, I/ERG Vice Chair EPP/ED hearing, Brussels, 8 January 2008

2. ©Ofcom VOICE REGULATION IN FORCE Prices came down by a third. But under the caps competition is limited. 49€c 24€c

3. ©Ofcom European average increase in voice (regulated) and in SMS (non-regulated) were similar TRENDS IN RETAIL VOLUME FOR VOICE AND SMS (Q2 2007 = 100)

4. ©Ofcom SMS PRICE TRENDS Prices have changed little at retail and wholesale level.

5. ©Ofcom DATA ROAMING PRICES HAVE BEEN DECREASING Both wholesale and retail charges decreased significantly.

6. ©Ofcom ERG view on the draft Regulation Market forces not currently working well for voice and SMS roaming. – Material price reductions unlikely without further regulation Promising signs of market working for data roaming – Commercial incentives to reduce prices – Prices still very high in some markets – Wide variation in prices – Safeguard wholesale cap will protect interests of smaller independent operators Impact on market players – ERG estimate that proposals imply typical reduction of total gross revenue of around 2% – But offset by reduction in cost of wholesale roaming services – Cost will vary between operators – Impact on revenue significantly less than for 2007 Regulation

7. ©Ofcom Longer term prospects Mobile services normally bought/sold as a package – connection / domestic voice / SMS / roaming Customers tend not to think about roaming tariffs when choosing their network Little incentive for MNOs to reduce voice or SMS charges Competitive pressure exists from other delivery mechanisms for data services while away from home So market forces may continue to work well to bring down data roaming prices In longer term, competitive data roaming should mean competitive voice roaming (via VoiP / Voice over Broadband)

8. ©Ofcom Conclusions ERG believes the proposals of the Commission are measured and balanced In absence of regulation, market forces alone have not been sufficient to ensure consumer benefit However on data roaming, prospects do exist – wait and see approach Regulation should not be for life; ERG is considering in what circumstances this could/should be lifted ERG will continue to monitor and report