GSM operators seek allies in Parliament

MEPs will have a first discussion on Tuesday (26 September) of Commission proposals to limit mobile phone roaming charges. Viviane Reding, European commissioner for the information society, will be presenting to the European Parliament’s industry committee her controversial proposals to cap fees for mobile calls made abroad.

The industry lobby GSM Association has circulated a study to MEPs, which reviews the European Commission’s impact assessment of July 2006, alleging that it only provides a "partial and misleading analysis".

Commission plans to limit roaming charges to 30% above domestic tariffs could come into effect as early as next summer if MEPs strike a deal with the Council of Ministers on the first reading, which is the aim of the Finnish presidency. If operators are deemed not to have taken sufficient action to reduce fees voluntarily then caps on tariffs for calls made abroad could come into effect six months later.

"The picture for operators isn’t as rosy as the Commission is making out," said David Pringle, spokesperson for the association. The study asserts that the Commission’s judgements are based on an erroneous estimation of the value of the retail roaming market. The figure of €8.5 billion forwarded by the Commission, it says, applies to joint retail and wholesale revenue. The study is important, says Pringle, because Parliament and the Council would otherwise have been dependent on the Commission’s impact assessment.

Industry is strongly supported by Parliament’s centre-right EPP-ED group, which will be taking a lead role in reporting on the issue (a rapporteur is to be named next week). "Capping retail prices is an extremely heavy intervention in terms of public policy. I’d rather see the focus on capping wholesale charges," said MEP Malcolm Harbour. "It seems to me the Commission is in danger of going against its own principles by adopting such an interventionalist stance." Harbour expressed surprise that Liberal MEPs appear to be in favour of the proposals.

"I think industry will have a very hard time," said Liberal MEP Jorgo Chatzimarkakis. "The committee is normally very much in favour of industry, but here everyone can understand that its pricing policy is a bit too much. A lot of Parliamentarians have understood this is a consumer issue of …importance."

MEPs will have a first discussion on Tuesday (26 September) of Commission proposals to limit mobile phone roaming charges. Viviane Reding, European commissioner for the information society, will be presenting to the European Parliament’s industry committee her controversial proposals to cap fees for mobile calls made abroad.