Mobile time windows for pre-paid customers

Despite the political crisis, the Italian government has kept implementing its working programme. One of its pledges was to do away with the charges associated with mobile phone top-up cards for pre-paid customers. It was a bold step in favour of consumers which paid off. I followed closely its implementation by Economic Affairs Minister Pier Luigi Bersani, with whom I worked closely within the Socialist Group's Economic Affairs Working Group when he served as a member of the European Parliament.

Mobile telephony is one of the sectors in which I think that consumers are being short-changed. This goes beyond the roaming issue on which I am drafting a report. It has to do with other issues, from the transparency of the tariffs, to the way in which tax is being levied on top-up vouchers, to the time windows being given to pre-paid mobile phone users.

The latter is an issue of particular importance to Malta, given that our country has the highest percentage of pre-paid mobile phone customers within the European Union. The time window given to consumers to use their credit varies between 10 to 360 days, depending on the value of the top-up voucher. Unless this amount is used during this period, the credit is lost.

I asked the European Commission for its view on this practice, especially with relation to the length of the time windows.

The Commission replied that the time periods within which credit must be used by pre-paid subscribers have not been addressed in the directives constituting the EU regulatory framework for electronic communications. Nevertheless, the general issue of increased transparency is being addressed under the ongoing review.

Commissioner Viviane Reding acknowledged the fact that the issue is particularly important for Malta due to the fact that our market has the highest percentage of pre-paid customers within the EU.

As long as adequate information is provided to the subscriber and the offer is transparent, then it is unlikely that any specific EU consumer protection law would have been breached.

Nevertheless, the Commission made it clear that the national regulatory authorities, in this case the Malta Communications Authority, or consumer protection bodies, may wish to investigate this matter and take any necessary action in accordance with national laws.

In addition, Council Directive 93/13/EEC of April 5, 1993 on unfair terms in consumer contracts, which is intended to prevent significant imbalances in the rights and obligations of consumers on the one hand and businesses on the other, may be applicable in this case.

Competent national authorities (such as courts, administrative bodies) may, on a case-by-case basis, declare a particular contractual clause to be unfair, therefore not binding on the consumer.

In other words, the national authorities have the necessary tools to take action. Their comments are warranted.

Mr Muscat is a Labour member of the European Parliament and vice president of the Economic and Monetary Affairs Committee.

www.josephmuscat.com