Socialists could block roaming law

Socialist MEPs are warning that they might block plans to cut mobile phone roaming charges this summer unless EU governments agree that all existing customers should automatically benefit from lower rates.

Malta’s Joseph Muscat, the leading Socialist MEP on the proposed regulations to cut roaming charges, said: "Unless we get a good deal which protects customers we could consider not going for a first reading deal."

The German presidency of the EU wants to get agreement in first reading with the Parliament so that holidaymakers would benefit from lower tariffs from this July. Going into second reading would mean the new rates would be delayed for several months.

Muscat said that the "crux of the argument" between MEPs and the member states was whether new rates applied on an "opt-in or opt-out basis".

Mobile phone operators want an opt-in approach where customers would have to choose to switch to the new rates. David Pringle of the GSM Association, the mobile phone operators group, said that "any solution involving an opt-out will take longer to implement" because of logistical problems in getting customers to change contracts. The industry is arguing for an opt-in approach where users can choose to keep their existing contracts and rates or switch to the new ‘Eurotariff’.

In the first meeting with MEPs and the European Commission on Tuesday (24 April), the German presidency proposed a mixture of the two approaches with new customers being offered the lower rate and existing ones having the option to switch to it.

But Muscat insisted on an opt-out approach in which all customers would benefit from the lower capped rates unless they chose to accept another package from their service provider.

The presidency is proposing to cap the rates for making and receiving calls abroad at a level higher than the level wanted by MEPs. The presidency has suggested a cap of €0.60 per minute in roaming charges for making calls and €0.30 for receiving a call. MEPs on the industry, research and energy committee voted in April to cap charges at €0.40 for making calls and €0.15 for receiving calls.

But EU diplomats said that the differences between the Parliament’s and the presidency’s position could be closed. Muscat said that there was "a willingness on both sides to move on prices". EU officials said that the final compromise would probably be around €0.50 a minute for making a call.

But the mobile phone industry is warning that even the presidency’s opening bid of €0.60 is too low.

Pringle said that the caps should be at €0.65 and €0.35, which would leave room for operators to compete for customers below that level.

Pringle said that setting the caps at the level proposed by the industry committee would mean 25% of all roaming calls being made at less than the cost of connecting the call while 20% of incoming calls would be made at rates which did not cover the cost of charges paid to third parties.

The industry’s view that the caps should not be set too low is finding sympathy from some member states with France and Spain arguing for higher rates than the presidency is proposing. A diplomat from one member state said that if the caps were set at less than cost they could drive up prices for normal calls.

MEPs, the presidency and Commission will have a second meeting on Wednesday (2 May) to try to reach a compromise. If a deal is reached, the full Parliament would vote on the roaming regulation at the mini-plenary on 9-10 May. If approved the law would come into effect on 30 June or 1 July.

Socialist MEPs are warning that they might block plans to cut mobile phone roaming charges this summer unless EU governments agree that all existing customers should automatically benefit from lower rates.