Over the past 10 years the base cost of mobile telephony and Internet for the telecom companies has been steadily falling thanks to the advance of technology and the overall market growth, which made infrastructure development cheaper and more cost-efficient. However, cost of telecom services for the end user wasn’t going down as rapidly.
When it comes to the international roaming industry, consumer prices for mobile telecommunications and Internet are being reduced even slower than in case of the in-country plans even despite continuously increasing globalisation tendencies
Such a radical difference between the consumer and base price for the telco services—in other words retail vs wholesale—may be explained due to high monopolization of the telecom sector around the world.
It leads to significant increases in business risks for SMEs and makes it extremely difficult for new industry players to enter the market, resulting in price increases for the end customer.
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