November 28, 2003
Mobile Firms Face Text Backlash
European mobile operators' profit bonanza from text messaging is at risk from a consumer backlash on price that is bringing increased regulatory scrutiny, repors the WSJ.
"Complaints about their price are increasing in France, Italy, Spain and the U.K. If successful, consumer campaigns could take billions of euros of revenue from the mobile industry.
According to consulting company Idate, person-to-person text messages generated €11.7 billion of revenue in Europe during 2002.
If margin cuts similar to those demanded in France are replicated across Europe, the loss in revenue would be billions of euros a year".
Related article: Consumer Advocate Group in France fights to bring down price of SMS
European Telecoms have a history of overcharging. In 1998, cyber groups mobilised across Europe to protest against their high tarifs for connecting onto the Internet. On this n/e/tsurf page from my archives, you will find a listing of the different websites that called for action at that time. Most links today lead on to some other destination, but it gives an idea of the amplitude of the protest and the countries who cried out.
And this brings to mind yesterday's story where a senior Nokia executive warned Europeans that they may be in danger of falling behind the US, where you can get all the GPRS you can use for $20 a month. cf Europe falling behind the US on wireless says Nokia.
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