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Following the announcement of European commission plans to regulate the market for making mobile phone calls abroad and reduce roaming prices to the level of domestic charges, the GSM Association claims that the operators profits will be cut by about 2.3bn (1.6bn). This leads to a raise of prices for the roaming services of about 7%, according to Viviane Reding, the IT commissioner. Operators reaction was to start a lobbying campaign among Ms Redings 24 fellow commissioners. Still, Ms Reding can claim public backing from Jos Manuel Barroso, the EC president, and her advisers insist that commissioners targeted by the lobby are on her side. Britains five big mobile operators have reduced the cost of roaming by varying amounts in the past month, which was the best proof, according to the GSM Association, that the market was working. Operators say Ms Redings officials failed to carry out a required impact assessment of their proposals. Tom Phillips, the associations chief government and regulatory affairs officer, said: Fresh legislation is unwarranted. It will provide an unnecessary burden; its just Brussels bureaucracy The response of a senior EU source was that If we had not moved, the market would not even have thought of moving and the responses so far, while welcome, simply dont go far enough. Mr Phillips replied that competition had forced operators voice revenues down 5% a year over the past five years, with roaming prices down 8% in 2005 and set to fall even further this year. |
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