A rift between first and second generation mobile
network operators opened at theGSMA Mobile World
Congressyesterday as newcomers accused
incumbents of price gouging and protectionist tactics that raised
prices to consumers.
As EU ministers met in Prague to discuss the state of the
telecoms market in Europe, a group of nine mobile operators accused
large mobile operators of using the economic crisis to justify and
strengthen their dominant positions.
The
Mobile
Challengers Group, led by 3 Mobile, has operations in 13
countries and 80 million customers. It said national telecoms
regulatory regimes do not support consumer welfare.
"As the economic climate worsens we have noticed that some
incumbent operators have threatened to increase prices following
the proposed reductions in mobile termination rates (MTR)," said a
spokesman for the group. "This is absolutely unacceptable and the
EU should be intervening to prevent this."
He said the group believed that free competition was the best
stimulant for economic growth and investment. The economic crisis
should not be turned into an excuse to turn back the clock of
liberalisation, he said.
He accused the large telecoms groups of doing everything
possible to keep their dominant positions in the local markets of
almost all member states.
They did little or nothing to develop and stimulate cross-border
products even though they had operations across Europe, he said.
This was evident from their "huge resistance" against the roaming
regulation, he said.
He said group members had invested heavily and had successful
businesses in all countries where they are present. These had
changed the local markets and increased mobile usage. There was
still plenty of potential in these markets and in cross-border
products.
However, they were prevented from introducing such products
because of "structural issues" in national and EU markets. These
included the roaming wholesale market, which they said does not
allow for true competition.
Regulations still allowed incumbents to charge excessive prices
for terminating calls from other networks, and to consolidate their
position with low rates for local customers, they said.