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Implementation of EU Roaming regulation in Lithuania

Implementation of EU Roaming regulation in Lithuania. Content :. 1. Legislation 2. Implementation 3. Problems 4. Lessons to learn. Legislation. Roaming regulation III: - Regulation of v oice , SMS, data services -Retail and wholesale -Decoupling of retail roaming services

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Implementation of EU Roaming regulation in Lithuania

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  1. Implementationof EU Roamingregulationin Lithuania

  2. Content: 1. Legislation 2. Implementation 3. Problems 4. Lessons to learn

  3. 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

  4. 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)

  5. Legislation Switch to RLAH: Formalagreementofnewwholesaleroamingcharges BEREC guidelinesonroamingregulation: -interpretationofroamingregulationrules

  6. Implementation: prices ?

  7. 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.

  8. 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.

  9. Problems

  10. Problems

  11. Problems • Everyroamingserviceunitprovidedwould be lossmaking. • Revenuesfrominboundtrafficwouldnotcoverthelosses. • Operatorshavedifferentcoststructuresanddifferentpositioning. • Operatorsdonotwant to be „thebadguise“, but... • Shareholdersdemandincreasingrevenuesandprofits. Theproblems: a) how to satisfyshareholders, thepolicymakersandcustomers; b) howwillreactthecompetitor.

  12. 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.

  13. Thank You

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