European Parliament targets mobile Bill Shock

MEPs agree on price caps, operator freedom.

Among the new regulations is a maximum limit of 70 cent per MB of data used while roaming within the EU, far below what some carriers are currently charging. Calls will also be capped at a maximum of 29c per minute (excluding VAT).

Fucking Keynesians. Price ceilings only stifle markets and create inefficiencies that limit growth. They also reduce the amount of investment that suppliers are willing to out in to the market. Consumers need to take the initiative on costs to prevent their own excessive use and subsequent high bills. Transparency in billing is necessary, not price caps. 

Additionally, customers can also choose a different operator abroad if they choose to do so. "In a borderless Europe, there is no place for charges that diverge so much at home and abroad," said MEP Ivo Belet.

The European Parliament is introducing these new regulations, amongst others, to prevent occurrences of bill shock within the European market. The new rules will result in significant savings costs for business travellers in the EU, and it also encourages carriers to compete, according to the EU.

Encouraging competition by capping market prices? The two are mutually exclusive, but capping prices will not foster competition, as competing carriers see little reason to enter markets where the current major players are already receiving maximum returns on investment, with the state discouraging growth through price ceilings. 

The new regulations will come into effect in the European market in 2014.

Another Keynesian failure, getting hard to keep track of them. 

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