Quote:
Originally Posted by nomadking
The costs that are payable to those companies in the other countries has to come from somewhere. Why should those remaining in the UK, be expected to pay the additional costs incurred by people travelling to Spain etc?
People are using the mobile networks of other companies in other countries, and those other companies, quite reasonably, expect to be paid for providing that service.
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You’re assuming that their pricing is absolutely stripped to the bone, all of their costs absolutely minimised for fear of losing out to their competitors.
While markets in perfect competition work in this manner that isn’t true where there’s a small number of suppliers offering like for like products. While there are MVNOs there’s fundamentally four UK suppliers of mobile connectivity. They have no incentive to aggressively reduce their costs and every incentive to push their prices gradually upwards to maximise profits in the absence of adequate regulation.
None can make substantial inroads into the others market share in a short period, in which the other would respond anyway.