MWC: Vodafone boss slams regulation

Regulation on termination fees and pricing should stop, says Vittorio Colao
Colao called for a halt to pricing regulations at Mobile World Congress.
Colao called for a halt to pricing regulations at Mobile World Congress.


Telecom regulators should stop interfering with mobile termination and roaming rates, according to Vittorio Colao, CEO of Vodafone Group.

Speaking at the opening keynote session at Mobile World Congress in Barcelona, Colao called for an end to the “autopilot regulation” which he said now prevails in much of the world.

“It is an old regulatory approach that was maybe justified 15 years ago but keeps growing and growing,” he said. “We need supportive regulation.”

The CEO added that when a regulator enforces cuts to mobile termination rates, only a small proportion actually ends up in the pockets of the end user. He pointed to a report from the European Commission, which stated that out of 10 cents cut from termination fees, only 2 cents stays with the consumer.

Instead, operators should be able set the termination rates at market prices and be allowed to reinvest the money, he said. “Does Europe need investment and employment, or does it need mobile termination cuts?” he asked. “We should stop having this continuous regulation on pricing and let the industry reinvest the money.

“We have prices in Europe which are much lower – you just have to go into a shop in the US to see how much people pay for a BlackBerry or an iPhone,” he added.

REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.

Editor's Choice

Emerson expands analytics platform for industrial enterprise-level wireless infrastructure management
Plantweb Insight platform adds two new Pervasive Sensing applications that manage wireless networks more efficiently with a singular interface to the enterprise
Digitalisation seen as a competitive advantage by Middle East private businesses
Nearly 80 per cent of private business leaders acknowledge that digitalisation can impact business sustainability
Etisalat introduces Multi-Access Edge Computing architecture delivering best-in-class video streaming performance for 5G networks
MEC architecture achieves performance gains of as much as 90% in video streaming, validating how ultra-low-latency applications will be delivered over 4G and 5G networks

Most popular

Don't Miss a Story