You are here: silicon.com > Networks > Mobile & Wireless

Mobile & Wireless

Is a fresh roaming row brewing in Brussels?

Peter Mandelson to put in his 10-pence worth?

Tags: reding, mobile roaming, roaming

By David Meyer

Published: 7 July 2006 09:15 GMT

A row is brewing in the European Commission over plans to force mobile operators to slash their roaming charges, as discussions move into their political phase.

Commissioners will meet next week to discuss the proposals, which were made by the commissioner for information society and media, Viviane Reding.

Reports on Wednesday suggested Reding will find herself up against trade commissioner Peter Mandelson and industry commissioner Guenter Verheugen, who fear the cuts will damage the operators' competitiveness.

The operators themselves are hugely opposed to Reding's proposals, which would see the charge for using a mobile phone outside the user's home country - but still within the EU - cut to a maximum of 30 per cent above the wholesale price for the call.

That said, the last few months have seen operators racing to pre-empt any regulation by making limited cuts to their roaming charges.

Sources within the EC have told silicon.com sister site ZDNet UK that the objections within the Commission fall into two broad streams. The first, from the trade commission, claims Reding's proposals go against the principle of non-discrimination between World Trade Organization members.

It is unclear how well this case would stand up. As one insider put it: "If you abolished the custom duties between the UK and Ireland, we are still allowed to keep custom duties for Thailand and the US."

Even if the trade commission's argument were to be held as valid, it's understood that a simple clause in Reding's legislation could keep her proposals afloat.

The industry commission is arguing that Reding is wrong to extend her proposals to retail rates, and says they should be limited to wholesale rates - the charges that operators levy on each other.

However, there is a strong feeling within the EC that savings made at the wholesale level have a poor record of being passed on to retail customers in the roaming market.

Furthermore, Reding's desire to abolish charges for receiving calls while abroad depends on regulation at the retail level, as that is where the charge is made.

It's thought that trade and industry are the only two out of the Commission's 25 constituent ministries to object to Reding's proposals. As the legislation will ultimately depend on a majority vote in the EC "College", it seems unlikely that Reding will be defeated.

A spokesman for Mandelson's office said on Wednesday he would not "get drawn into commenting on the position of various commissioners" but said he was sure the "various perspectives that have been floated in the Commission" would be discussed in a week's time.

David Meyer writes for ZDNet UK

  1. Zones
  2. Management
  3. Networks
  4. Software
  5. IT Services
  6. Hardware
  1. Verticals
  2. Public Sector
  3. Financial Services
  4. Retail & Leisure

Read and write about internet access at the airports of the world at atlarge.com.

Natasha Lomas Exclusive: Jimmy Wales on what's next for Wikipedia Why Wikipedia needs geeks and why a life unplugged is unthinkable

Peter Cochrane Peter Cochrane's Blog: United breaks guitars? Customer service has changed forever


  • Jobs
Business Development / Area Sales Manager - Telco 75k OTE

While operating their own national voice and data network, providing voice, mobility, network / data solutions to government, corporate and wholesale ...

Business Evangelist for Growing International Consultancy

Wholesale, Import/Export, Manufacturing, Local Authorities, IT, Biotech and Distribution. The European Commission uses an employee definition ...

IT New Business / Business Development Manager - commission only

IT New Business / Business Development Manager - commission only Excellent commission rate, on new business and then % on repeat business, expensed ...

Agenda Setters 2009
Welcome to the ninth annual Agenda Setters poll – silicon.com's list of the top 50 most influential individuals in the technology and IT industries, from techies and CIOs to entrepreneurs and business leaders. Find out more in our latest special report.





Quick Sitemap Links: