1. INTUG EPP-ED Hearing on Roaming II Regulation Brussels, 8 January 2009 www.INTUG.org Business Users’ Views on the Regulation of Roaming Pricing for Voice, Text and Data Nick White Executive Vice President, INTUG Pricing - Can One Fit All?

2. INTUG EPP-ED Hearing on Roaming II Regulation Brussels, 8 January 2009 www.INTUG.org Roaming price effects Roaming Charges are a Cross Border Tax on Trade in Services Roaming Charges are neither transparent nor related to Cost Roaming Charges appear to behave in a similar way to Price Cartels Roaming Charges for data deter use of improved business processes Wholesale price reduction not passed to business or mass market users

3. INTUG EPP-ED Hearing on Roaming II Regulation Brussels, 8 January 2009 www.INTUG.org Context: Roaming questions Why are roaming charges so high? Why are they time-related? Why are they so similar in the EU? Why are they so near the maxima? Why do on-net to on-net calls in the same country on the same network cost more than a small fixed service charge for inter-operator call set-up and recovery of revenue?

4. INTUG EPP-ED Hearing on Roaming II Regulation Brussels, 8 January 2009 www.INTUG.org Business mobility priorities How good is your main mobile service provider at addressing these priorities ? Source: Ovum/EVUA What are your organisation's main enterprise mobility priorities? Poor ExcellentGoodAdequate On-site mobility Mobilising data applications Mobile voice and integration with the corporate voice network Exploiting unified communications and collaboration potential Device management Customer support Billing & analysis tools Remote access for staff working off site Security Total cost of ownership (TCO) International contracts for mobile services International roaming costs Enterprise priority Service provider capability Not required Extremely important Important Low importance

5. INTUG EPP-ED Hearing on Roaming II Regulation Brussels, 8 January 2009 www.INTUG.org Roaming still the top concern Expenditure on roaming isn’t going down - according to EVUA members Enterprise priority Extremely important 77% Important 23% Supplier capability Source: Ovum/EVUA Poor 72% Adequate 23% Good 5% 100%80%60%40%20%0%20%40% 100%80%-0%40%20%0%20%40%60% Voice roaming Spend: Data Roaming Up over 10%Up by up to 10%Stayed sameDown by up to 10%Down by over 10% Voice roaming Usage: Data Roaming There is clear evidence of price elasticity in roaming: Lower prices do not mean lower revenue or lower profit

6. INTUG EPP-ED Hearing on Roaming II Regulation Brussels, 8 January 2009 www.INTUG.org One Solution Fits All? No. Must distinguish business market as bundles and tariff profiles differ Must be wholesale and retail because price reductions are not passed on and MVNO market is limited in scope Must be extended period as there is no effective international competition (Eurotariff implies joint dominance) Must be fair and transparent as pricing hides real costs and profit margins Voice, Text and Data have different issues

7. INTUG EPP-ED Hearing on Roaming II Regulation Brussels, 8 January 2009 www.INTUG.org Voice is still too expensive Users expect convergence of price, performance and pricing principles No “roaming charges” for fixed calls - local call costs the local rate abroad Examples of progress in some areas - eg Zain in ME/Africa, encourages use Clear capacity for significant further reductions, longer glide path needed - no evidence of effective competition Radical review of cost-based pricing needed

8. INTUG EPP-ED Hearing on Roaming II Regulation Brussels, 8 January 2009 www.INTUG.org Text: Is it Voice or Data? What is the “right” roaming price?

9. INTUG EPP-ED Hearing on Roaming II Regulation Brussels, 8 January 2009 www.INTUG.org Text: Is it Voice or Data? What is the “right” roaming price? Regulatory Recommendation - Text message price cap €0.11

10. INTUG EPP-ED Hearing on Roaming II Regulation Brussels, 8 January 2009 www.INTUG.org Text: Is it Voice or Data? What is the right roaming price? Regulatory Recommendation - Text message price cap €0.11 If it’s Voice at €0.49 per minute (allowing just 11kbps for voice) - Text message price is €0.0012

11. INTUG EPP-ED Hearing on Roaming II Regulation Brussels, 8 January 2009 www.INTUG.org Text: Is it Voice or Data? What is the right roaming price? Regulatory Recommendation - Text message price cap €0.11 If it’s Voice at €0.49 per minute (allowing just 11kbps for voice) - Text message price is €0.0012 If it’s Data at €1.00 per Megabyte - 160 char costs €0.00016

12. INTUG EPP-ED Hearing on Roaming II Regulation Brussels, 8 January 2009 www.INTUG.org Text: Is it Voice or Data? What is the right roaming price? Regulatory Recommendation - Text message price cap €0.11 If it’s Voice at €0.49 per minute (allowing just 11kbps for voice) - Text message price is €0.0012 If it’s Data at €1.00 per Megabyte - 160 char costs €0.00016 Text is neither voice nor data and the market shows no prospect of effective competition

13. INTUG EPP-ED Hearing on Roaming II Regulation Brussels, 8 January 2009 www.INTUG.org Data: key economic enabler Mobile data apps must be facilitated - loss of efficiency opportunities Bill shock has created fear of use - Can’t cut business off at the cap Mobile data tariffs are unsuitable - Megabyte irrelevant to business Machine to machine high volumes - Virus checker background updates Mobile data applications need to be mobile, without huge roaming penalties for usage

14. INTUG EPP-ED Hearing on Roaming II Regulation Brussels, 8 January 2009 www.INTUG.org Conclusions Roaming regulations should be extended - changes must apply to existing contracts Wholesale and Retail regulation is needed Pricing principles need to be reviewed - voice for logic of time based charging - text for basis of high level of charge - data for pricing unit relevance to business SMP cannot be assessed at national level MVNOs needed despite loss of Market 15 A very high profile global issue for the business and mass markets. Action can contribute to economic welfare. Users should not be afraid to roam.

15. INTUG EPP-ED Hearing on Roaming II Regulation Brussels, 8 January 2009 www.INTUG.org Thank you Nick White Executive Vice President, INTUG Pricing - Can One Size Fit All?