EU races towards roaming cost clampdown

The EU is on course to agree by the end of the year to cap mobile phone roaming charges following a decision by MEPs to strike a deal with national governments. The cap could come into effect as early as next summer, limiting the additional charges when mobile phone-users receive calls abroad to 30% above domestic tariffs.

European Parliament officials said that following discussions with the Finnish presidency, MEPs had agreed in principle to strike a deal in first reading on the proposal to cap charges. The plan was unveiled in July by Viviane Reding, the commissioner for the information society. Normally such new legislation, which will substantially reduce mobile phone operators’ profits from roaming charges, would have to go through two readings in the Council of Ministers and the Parliament. That process can take at least 18 months.

The proposed regulation would, it is estimated, cut operators’ annual earnings from roaming fees from €8.5 billion to around €3.5bn. It forms a major part of the Commission’s "citizens’ agenda" to deliver concrete benefits from EU membership.

Officials from the Parliament’s main political groups confirmed that MEPs would accept a rapid deal provided the Council could agree its position within the necessary timeframe.

Although the UK and France have expressed reservations about Reding’s proposal to impose a price cap at retail level, at present there is a qualified majority in the Council in favour of her plan.

The draft regulation she presented in July would limit charges on calls made and received abroad to 30% above domestic tariffs. Under the proposal, the cap would apply six months after the regulation came into force for calls made abroad but with immediate effect for calls received abroad.

Speaking to European Voice in Strasbourg, Finland’s Europe Minister Paula Lehtomäki said that the presidency’s objective was to get a common position in first reading. She said that getting a deal to cap roaming charges was an "important part of the functioning of the internal market and of European competitiveness". "We are putting a lot of effort into this," she added.

Industry observers warned, however, that the timetable of getting an agreement by December was ambitious and commented that lobbying by mobile phone operators could undermine the majority support for the proposal in the Council.

The Parliament also has to resolve some internal issues including deciding which of two committees, industry, research and energy (ITRE) or internal market (IMCO), takes the lead on the proposal and deciding which MEPs draft Parliament’s opinion. Officials expect ITRE to be the main committee while a centre-right MEP is expected to take charge of co-ordinating the assembly’s position.

Graham Watson, leader of the liberal ALDE group in the Parliament, said that the Commission’s proposals were "too weak" and did not apply to other products and services such as SMS and MMS messaging. He said his group would be arguing for a tougher approach "to deliver maximum benefit to citizens as soon as possible".

The EU is on course to agree by the end of the year to cap mobile phone roaming charges following a decision by MEPs to strike a deal with national governments. The cap could come into effect as early as next summer, limiting the additional charges when mobile phone-users receive calls abroad to 30% above domestic tariffs.

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