Media Release


ACCC says international roaming charges too high:

vRoam calls for more to be done to reduce costs and better inform consumers

15 September 2005


Niche telecommunications specialist vRoam Global has welcomed the release yesterday of the ACCC’s long awaited report of its inquiry into mobile international roaming services.
But vRoam is disappointed the regulator plans to take no action to reduce international roaming prices, or improve pricing transparency, despite finding these are “very high”.

ACCC Commissioner Ed Willett said “The ACCC’s Final Report expresses concerns that prices for international roaming services appear to be very high – especially as compared to charges set for other mobile telephone services.”

The inquiry found the most significant factor in setting prices to be the wholesale charges by overseas mobile network operators - over which the ACCC has no jurisdiction.

It also found competition was improving, but only due to increased availability of substitute services for consumers, not due to the traditional carriers.

The report acknowledges vRoam Global as a provider of such a substitute service; overseas SIM cards that deliver savings of up to 40% on global roaming with the major carriers.

vRoam has been calling for greater transparency of pricing since its submission to the ACCC inquiry back in 2003 in which it called for a Roaming Code of Conduct.

“Unfortunately, there is nothing in yesterday’s report that will reduce the costs of roaming, or help consumers make more informed choices,” said vRoam Global CEO Danny Nathanson.

“It’s true international roaming charges are complex but that complexity is often used to hide exorbitant rates.” 

More needs to be done to inform consumers how mobile roaming costs work and how they can save money, he says. Not only are the roaming rates excessive, but roaming is by its nature inefficient.

“Many people do not realise that letting a call go to voicemail when overseas is a very expensive thing to do because the call is bounced back and forth between their Australian carrier and foreign network,” says Mr Nathanson.

Earlier this year the European Commission announced it would start publishing sample tariffs on a dedicated website in a bid to enhance competition and increase price transparency.

Meanwhile, vRoam has kept its own pricing monitor which shows rates increased six per cent last year. It also records an alarming price gap between receiving and making calls in Australia’s top business travel destinations.
In New Zealand it costs five times more to make a call on your mobile to Australia than to receive one.

About vRoam Global

vRoam Global is an Australian-based global mobile service provider that offers a low-cost alternative to global roaming in more than 35 countries.  The service uses local overseas SIM cards to cut out roaming charges, saving travellers up to 40 percent on their mobile usage. 

 For a small additional fee the ‘Follow Me’ service allows users to remain contactable overseas on their normal Australian mobile number. Users also have a local number for the foreign country to make local calls at close to local call rates. 

 The service doesn’t affect existing relationships with Australian mobile phone carriers and is available to prepaid customers.   Call fees are fixed and known in advance. Bills are fully itemised and post paid.

  For more information please visit www.vRoam.com or call 1300 787 626

 

Media enquiries:

Satu Raunola, Finnesse Communications, T. 02 9929 6044 E. satu@finnesse.com.au

Danny Nathanson, vRoam Global, T. 02 9519 2258 E. danny.nathanson@vRoam.com