Overpaying (Illustration)
Photo: Index Open
OECD: Israel's cell market noncompetitive
Annual report by financial group says mobile service providers in Israel among world's most expensive
The OECD (Organization for Economic Cooperation and Development) published its annual Data Roaming report, which reviews cellular service provider's rates for long-distance and overseas use, this week.
The organization found that the Israeli consumer suffers the fifth-highest rates for calls and internet use – when using cell phones outside Israel.
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Topping the list is Canada, where users pay $24.6 per megabyte of cellular data during overseas use. Also ranking in the top five were the United States, Mexico and Chile.
The Euro-zone was found to offer the most competitive prices for overseas cellular use, with Greece proving the most cost-effective at $4.17 per megabyte of cellular data.
The OECD report points to a direct correlation between data roaming prices and the competition between cell service providers.
The gaps between provider-offered services and prices in Israel indicate "a noncompetitive market," the report stated.
Data roaming prices are determined directly between local and international cell service providers, with the premise that consumers – which cannot choose their international provider – are a de facto "captive audience."
The OECD report was based on data provided by 68 cell service providers in its 34 member-nations.
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