Singapore and Malaysia mulling on slashing roaming rates

Regulators discuss with operators to lower rates by 30% for voice calls and 50% for SMSes.

Mr Lui Tuck Yew, Acting Minister For Information, Communications and The Arts, Singapore and H.E. Dr Rais Yatim, Minister of Information, Communications and Culture, Malaysia, have jointly announced that Singapore and Malaysia have both made a commitment to explore ways to reduce the prevailing roaming rates for mobile phone users. This reflects the close relationship between the two countries and recognises the growing importance of mobile roaming service for mobile users, according to an IDA report.

The Infocomm Development Authority of Singapore (IDA) and the Malaysian Communications and Multimedia Commission (MCMC) are currently seeking operators’ feedback on a proposal that seeks to progressively reduce the mobile roaming rates charged to Singapore and Malaysia mobile phone users, by up to 30 percent for voice calls and up to 50 percent for SMSes when they use the mobile roaming service provided by all mobile operators in Malaysia and Singapore respectively. This proposal would be implemented through reductions of both the wholesale inter-operator charges and the retail end user charges, and will be contingent on both countries following through the agreement.

Further details will be available only after both agencies have completed discussions with their respective operators. IDA and MCMC expect to provide an update on this proposal in 3Q 2010. These proposed reductions could only be possible due to the continued close relations between Singapore and Malaysia.

In recent years, high retail roaming rates have been an area of concern for many countries. Mobile users roaming in another country often pay significantly higher charges for calls as compared to the local mobile user. With increased tourism and private and business travels between Singapore and Malaysia, and the rising penetration rate of mobile telephony in both countries, it is reasonable to expect mobile roaming traffic in both countries to grow in the future.

The telecom regulators for both countries, IDA and MCMC have been studying the rates charged by mobile operators of both countries to better understand the prevailing industry practice and charging model. As mobile roaming charges involve different price components charged by operators from both countries, any study of and regulatory requirement to reduce roaming charges will require coordination and cooperation between both regulators to ensure that users from both countries benefit from the decision.

Meanwhile, M1 has expressed support to the initiative. In its statement, M1 said it “always worked relentlessly to keep our customers satisfied through innovative tariff plans, competitive pricing and services that best meet the varied needs of our customers. We believe there are several approaches that can be adopted and have provided our suggestions to IDA. M1 would continue to work closely with IDA and the other operators to achieve an outcome that best serve the interests of all parties.”