Italian MPs force mobile price U-turn

Italian mobile operators are expected to do a U-turn after outraged MPs called on consumers to strike in protest over severe price increases between fixed and mobile lines.

Telecom Italia Mobile and Omnitel were told to suspend increases that were implemented after the country's telecoms regulator called for simpler tariffs. The new rates saw private users having to pay 83 per cent more for off-peak calls to mobiles. Business users were hit with a flat rate, with price hikes of 153 per cent for evening calls.

After a public outcry, MPs from all parties urged Italian consumers, who are among the world's biggest mobile users, to switch off their phones in protest - a 15 minute silence was planned for Monday.

Pressure from the Italian telecoms regulator finally brought Omnitel to agree to suspend the new prices for calls to its own mobile phones from Telecom Italia fixed lines. Telecom Italia Mobile said it is also fully prepared to examine any alternative proposals the regulator makes.

Paola Forte, manager of Omnitel's North Italian retail outlets, said: "The whole matter is quite embarrassing." She continued: "Consumer lobbyists are protesting and parliament is in the midst of discussions about it. We think the government will intervene although there may not be an immediate outcome."

Joachim Kubosch, assistant to European IT commissioner, Martin Bangemann, said he is confident the Italian telephone regulator will be able to resolve the issue. He said: "Enzo Cheli [head of the regulatory body] told me he thinks this could be a case for the anti-trust authorities, but his department will also investigate."