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Story: EC: Data-roaming regulation to be at wholesale level

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Posted by: Brian Catt (Friday 15 February 2008, 7:15 PM)

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Wholesale

Wholesale's the price a carrier sells to retailers at, including its own retail operations. The idea is you can then have a level playing field for retailers (Virtual Network Operators/VNOs) buying from carriers wholesale as with Electricity, Gas, etc. and reselling. Virgin, Easy, Tesco, BT, etc.

Hence you don't need the stupidity of multiply redundant networks competing with each other for the same customers, its efficiency and service that win out. Great in theory but ....... if the retail operation of the carrier's overall business sells the traffic the overall operation makes the margin on the wholesale as well of course - so the retail sale can be at break-even if the Wholesale makes a big enough profit for the corporation overall - unfair to an MVNO, who has no wholesale profit to share around. That is what's going on here. Cross subsidies by carrier's and over charging in general to roaming execs who don't pay their own bills - skimming an early market.

Brian Catt

Brian Catt
Sales / Marketing, London
Member since: January 2004

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