EU move on mobile regulations irks operatorsBy: Paul Meller, IDG News Service (Brussels Bureau)(04/04/06)
Anticipating fierce opposition from operators,
the European Commission Monday opened a six week-long consultation
about its plans to slash the cost of using a mobile phone on the
move.
European Information Society Commissioner Viviane Reding announced
last week that she would submit a proposal for new legislation
cutting the average cost of roaming by 60 percent in the coming
months.The GSM Association (GSMA), a trade group
representing European mobile phone operators, condemned the plan as
"unnecessary and heavy-handed" in a statement issued even before
the consultation started.The GSMA said that regulating retail prices is a
drastic step that distorts competition in the market and interferes
with companies' ability to develop their own business models and
differentiate themselves from the competition.Roaming is a value-added service for which
mobile operators should be free to charge market rates, said Rob
Conway, chief executive officer of the GSMA, in the statement.
Conway said it would be "inappropriate" to regulate roaming tariffs
at a pan-European level, since national markets are
different.In a statement on Monday, however, Reding said
that the reduction of roaming charges is crucial for
competitiveness. "Using your mobile phone abroad must stop
providing a pretext for excessive charges, and instead become an
attractive service for tourists and business travellers anywhere in
the 25 EU Member States," she said.Roaming charges in Europe range from Euro 4 (CDN$5.66) to Euro 8 for a four-minute call, she said. She also wants operators to
stop charging users for receiving calls while on other operators'
networks.While operators oppose the Commission's
initiative, national regulators broadly welcomed it. "Our
commitment to resolve this is absolute," said Kip Meek, chairman of
the European Regulators Group (ERG) and of UK telecommunications
regulator Ofcom. He saidB the cost of roaming is "completely
disproportionate."The planned regulation to force operators to cut
roaming charges will have to be approved by a majority of the
European Union's 25 member states and by members of the European
Parliament. The contributions to the consultation should reach the
Commission by May 12. The consultation paper is also available
at:http://europa.eu.int/yourvoice/consultations/index_en.htmThe planned roaming-charges law won't alter
anything in the two ongoing antitrust cases involving mobile
operators in Germany and the UK Neither case is ready to conclude
yet, said Commission competition spokesman Jonathan Todd. |
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