Arcep warns scrapping roaming fees in overseas departments will destabilise markets

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French telco regulator urges government to introduce measures to protect operators.

Arcep this week warned that removing roaming fees between France and its overseas departments and territories will destabilise markets.

"Accompanying measures for operators would be required to ensure that putting an end to the roaming fees billed to end users is economically viable," the French telco regulator said in a statement on Thursday.

In October 2015, France’s government passed a law that will put an end to roaming charges for mobile calls and text messages for consumers travelling between France and its overseas departments and territories. The new law is due to come into force on 1 May.

France has five overseas departments: French Guiana, Guadeloupe, Martinique, Mayotte and Réunion. The French Southern and Antarctic Lands together constitute its sole overseas territory.

Arcep said that the wholesale roaming market requires reform before retail roaming fees can be phased out.

In addition, Arcep said that fair usage policies should be permitted to coincide with the end of roaming fees.

"If these conditions are not met, operators’ business models will be undermined, and operators in France’s overseas markets will be deprived of the resources they need to introduce superfast mobile services and to invest in 4G network rollouts," the watchdog warned.