Israel is among the countries whose citizens are charged the highest rates for overseas cellular internet communication, according to a recently published study carried out by the OECD. The study found that a Canadian tourist pays on average $25 per megabyte, Americans pay $22, and Israelis pay on average $15 per megabyte. The countries that pay the least are Greece and Iceland, with an average of $5 per megabyte for tourists.

According to the wording of the OECD announcement, governments and controllers must intervene to create competition among providers in order to bring prices down. The study was conducted among 68 providers from 34 countries, and concluded that providers are profiting vastly from high prices charged for data use by its customers traveling abroad.

The study shows that, despite the fact that Europe has limited the amount that can be charged for tourists' usage of their cell phone for calls, they have not done so for data use, and there is almost no competition, such that they can continue to claim that the high prices are a result of the high costs of service provided to tourists.

Israeli tourists traveling in Europe are not eligible to receive the rates that local residents pay for cell phone use. The rate is overseen by, and is one the decisions approved by, the European Union. Many countries have requested to join this arrangement, but currently the EU is refusing to accept new countries into the arrangement.

Published by Globes [online], Israel business news - www.globes-online.com - on June 12, 2011

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