vB Easy Archive - Why doesn't T-M encourage foreign T-M users to use T-M?

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Why doesn't T-M encourage foreign T-M users to use T-M?
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Posted by: mikethaler

I am a U.S. T-M customer. It would seem that T-M would want to encourage me when in the UK, Germany and wherever else the company may have service to roam on their network.
It costs "new" users the same to roam on any other carrier as it does to roam on T-M. In fact, as an "old" T-M customer who gets roaming rates for a fraction of the "new, improved" world class rates - it is often cheaper for me NOT to use T-M.

...mike

Posted by: polonius

Quote:

Originally posted by mikethaler
I am a U.S. T-M customer. It would seem that T-M would want to encourage me when in the UK, Germany and wherever else the company may have service to roam on their network.
It costs "new" users the same to roam on any other carrier as it does to roam on T-M. In fact, as an "old" T-M customer who gets roaming rates for a fraction of the "new, improved" world class rates - it is often cheaper for me NOT to use T-M.

...mike

I'm sure what the carriers are thinking with "world-class" type pricing -- it's not just TMO that's doing it, many of them are introducing "flat" rates where you pay rates in your home currency that are the same for all calls, local or international. It is simpler, but I think most people also see it as robbery.

But to address the question you raised, the reason is that the European Commission has forbidden carriers from giving preferential roaming rates to subscribers of sister companies. This ruling was a condition of the Vodafone takeover of Mannesman. The EC was concerned that Vodafone would use it's dominant market position to price competitors out of business, so as a condition of approving the takeover, it told Vodafone (and all the others) that if they cut rates for their own subscribers, they would have to cut them for their competitor's subscribers as well. The EC presumed that this would result in lower rates for everyone. Instead, Vodafone decided that if they weren't going to get a competitive advantage out of a rate cut, then why do it? So they left the rates up there for everyone, including their own subs. The other multinationals (e.g. TMO and Orange) have followed suit.

Posted by: mikethaler

Thanks for the explanation.
Seems to me that the first company that reduces rates for all roamers would pick up some number of subscribers.
It is my impression - i could be wrong - that Europeans tend to roam across international borders much more than Americans.

It would seem that T-Mobile could at least reduce roaming rates for American subscribers. Before they raised the rates substantially to a "one-rate" roaming schedule - we were paying substanitally less. Those of us who had been with T-M still get those low rates. The rates often vary quite a bit among carriers within the same country. Eg. New roaming rates in Mexico are $1.49/min. My rates on one of the carriers is 38 cents. The diff. for roaming in Israel is even bigger. Think "new" rates are $1.99/min. I pay 7 cents for incoming on one carrier - about 30 on the other.

...mike