More Price Regulation Coming?

Though European Union regulators are putting strong pressure on Europe's service providers to dramatically lower data and voice roaming costs, that isn't likely to happen anytime soon in Asian markets, says Rosemary Sinclair, International Telecommunications Users Group external relations officer, and reported by CommsDay.

“The significance to me of what has happened in the EU is that it indicates to us that the cost structure of delivering these calls is much, much lower than the retail prices,” Sinclair says. “The operators know exactly what the costs of services are,
but they are not prepared, without regulatory oversight, encouragement,
or if necessary, intervention, to do something about it."

"At the moment, as far as I can see, the only thing that would fix this is regulatory action," she says.

Service providers take notice: a re-regulatory wind is blowing around the world, though it isn't as windy everywhere. Telstra seems to be in a different situation than EU carriers. U.S. carriers have enjoyed a decade of less intense regulation. But there's one thing you can be sure of: it the telecom business, no set of rules, and no climate, lasts forever. The next swing will be back the other way.