Roaming backlash

By Anna McLauchlin

Date: 11/05/06

The telecoms industry will be pitched against consumer groups over the level of roaming charges for mobile telephone calls when the European Commission's consultation ends tomorrow (12 May).

The results will feed into a proposal expected from EU Telecoms Commissioner Viviane Reding, to peg mobile phone charges anywhere in the EU to prices in the consumer's home country.

The telecoms operators claim this could punish consumers by encouraging firms to raise prices for domestic calls to recoup revenue. Consumers might also have to choose whether to have roaming within their particular mobile package.

Tom Phillips, chief government and regulatory affairs officer for the GSM association, which represents more than 600 operators around the world, said: "We would like the EU to allow more time for market mechanisms to work. Prices have already come down and they will come down further."

He argued that interference on pricing from the EU would effectively kill competition. "If you regulate prices, the mobile telephone market will ultimately become utility-based and the day that happens is the day that innovation - things like 3G - stop completely," he warned.

Some national governments, including Ireland, Denmark, Finland and the UK have also questioned whether regulatory intervention is the right way to go.

But Jim Murray, director of EU consumer association BEUC, said that regulation was the only solution. He said: "Talking hasn't worked: there is no competition on roaming charges. We need regulation now."

Article anticipates the end of the European Commission's consultation period on 12 may 2006 on the the level of roaming charges for mobile telephone calls. Author quotes concerns from the industry that interference on pricing from the EU would negatively affect competition.

European Commission: DG Information Society: Activities: Roaming http://ec.europa.eu/information_society/activities/roaming/index_en.htm

---