Mobile roaming price-cuts in sight

European plans to force mobile operators to cut the cost of using a mobile phone abroad have received support from ministers - despite France and the UK disputing that regulation is the best way to curb roaming charges.

While ministers from across Europe backed plans for wholesale and retail price cuts, some are debating the necessity of introducing legislation to mandate immediate price cuts rather than allow the industry time to trim prices.

UK industry minister Margaret Hodge and her French counterpart have called for a delay to the introduction of compulsory retail price caps, preferring instead a six-month freeze on such measures to allow operators to introduce cost cutting of their own accord, using a suggested price yardstick developed by the regulators.

Speaking yesterday, EC information society commissioner Viviane Reding said while some issues still need to be resolved - such as whether data charges should be included in any legislation - roaming price cuts remain on the cards.

She said: "I am confident that consumers in Europe as well as business travellers will be able to benefit from substantially lower roaming tariffs already in summer 2007."

Reding has been gunning for cheaper roaming for some time, initially targeting price cuts of up to 70 per cent.

While operators have adopted a sanguine attitude to wholesale price regulation, the networks have objected vigorously to retail price regulation. Some operators have introduced retail price cuts already in an effort to stave off such action.