How Will Brexit Impact The Telecoms Industry?

We will not talk here about whether Brexit is a good or bad idea, but will talk neutrally about how the telecom sector is likely to be affected should the UK leave the EU on the 29th March 2019.

Firstly, let’s agree that with about £57 Billion, the telecom industry could be a game changer for the UK’s economy following Brexit. Which will give the industry extra attention in the parliamentary debate.

What Significant Changes Could We See Following Brexit?

1- Legislation

As an EU member, the UK telecom regulations are controlled by Brussels. Leaving the union will put the legislations back to Ofcom (The UK’s TV & Telecom Regulator) 2003 Act. As as a result, it is expected that local and international businesses operating in the UK may face some disruptions in term of data exchange and privacy control. On the other hand, Ofcom says they are ready for the challenge and a replacement regulation is there to take place.

2- Roaming

Another thing affected by Brexit will be mobile usage in EU countries. In 2012, The European Commission announced The Roaming Regulation No 531/2012, to regulate the imposition of roaming charges within the European Economic Area (EEA) which consists of the member states of the European Union, Iceland, Liechtenstein and Norway. In December 2016 the representatives of member state countries voted to abolish all roaming charges by June 2017 (Regulation EU 2017/920).

If the UK leaves the EU on 29th March 2019 as planned, with a withdrawal agreement in place, any changes will not happen immediately. All EU rules and regulations, including mobile roaming anywhere in the EU, will continue to apply until the end of the transition period on 31 December 2020.

What will happen after 2020? IT all depends on the UK-EU deal, which is yet to be negotiated. But the major UK network operators such as EE, Vodafone, O2 and Three said they don’t have any plans to reintroduce those charges.

3- Call Tariffs

On June 2018, the European Union Governments and law makers agreed to set a cap for call charges between EU countries, the new call tariffs presented was 17 Euro cents per minute (€0.17) for voice calls and Nine Euro Cents (€0.09) for text messages. For many companies operating in the UK with branches and offices in other EU countries, or British companies providing services within the EEA, this could be a potential disaster for their telephone bills.

As a solution, Avandda offers international calling bundles at a fixed rate. Contact our team to find out more about our international calling bundles.

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