19.08.2005

Consumers know little about the costs of using a mobile phone abroad

18.8.2005

– communications and consumer authorities demand transparent pricing

The Finnish Communications Regulatory Authority (hereafter FICORA) and the Finnish Consumer Agency (FCA) have examined how the Finns use their mobile phones abroad, which is also known as roaming. The survey revealed that consumers are content with how mobile phones work abroad, but think that the price level of calls is too high. The poor availability of transparent price information is seen as a major flaw. Only one person out of ten knows exactly how much it costs to use a mobile phone abroad. Every fourth person had not received any information about roaming prices.

Savings are possible in using a mobile phone abroad

Consumers themselves may influence the costs of using a mobile phone abroad. The network chosen abroad affects the pricing. However, hardly anyone (3 per cent) finds and selects the least expensive network. Most respondents have at least sometimes tried to save money by sending text messages instead of calling. A good third have no intentions to save. About 15 per cent of the respondents turn their mobile phones off abroad.

In July 2005, the FCA carried out a related comparison on what it costs to use a mobile phone in countries that are the most popular travel destinations for Finns. The comparison reveals that there are considerable differences among various countries in what it costs to make a few phone calls and send a few text messages on a short trip abroad. Also, price differences between operators within a country can be considerable. However, it is difficult for the consumer to compare prices because calls are generally charged at one second to one minute, which varies from one operator to another one. In addition, some operators charge a connection fee for each call.

Operators expected to provide more transparent and less expensive services

The survey shows that operators are a key source of price information for consumers. FICORA and the FCA are of the opinion that consumers should be better informed about the costs of using a mobile phone abroad and the opportunities to save money.

During 2005, FICORA will make a decision on how effective competition is in the market for international roaming at wholesale level. The consumer survey that was published now complements the market analysis related to the decision. The FCA's objective is to promote transparent pricing of communications services, develop consumers' independent initiative and support their readiness to compare the costs of using a mobile phone abroad.

The survey was commissioned by Taloustutkimus Oy, which interviewed about 1,000 Finns in May and June.

Survey on Mobile phone usage abroad (published 25.10.2005)

FCA's price comparison (in Finnish)

Further information:
Mr Torsti Alhava, Senior Advisor, tel. +358 9 6966 461, FICORA
Mr Ari Luukinen, Coordinator, tel. +358 9 7726 7506, FCA