Mobile phone tariffs reduced

On Wednesday, the European Parliament, in its plenary session in Strasbourg, voted with a strong majority in favour of an EU Regulation to reduce substantially the charges for using mobile phones abroad. This cleared the way for the regulation to come into effect.

This EU Regulation had originally been proposed by the European Commission on July 12, 2006. It gained the support of the representatives of the 27 EU member states the week before last and, now that the EP has given its consent, it will enter into force this summer.

This Regulation promises to bring advantages to many consumers, particularly those who travel overseas on business or on vacation and who usually are ever so careful not to use their phones too much because of the extortionate charges imposed.

It is yet another of the thousands of 'invisible' advantages that EU citizens reap. Of course, we are not saying that "cheaper mobile rates" is the answer to the cynic's musing about the advantages of EU membership. But it is just one of hundreds that would not be there had the EU not existed.

Reacting to the Parliament's vote, Telecoms Commissioner Viviane Reding said: "Today is a good day for consumers and business travellers in the EU...

"In a record time of only 10 months, a political agreement could be reached on the EU Roaming Regulation, thanks to the impressive support of the European Parliament and the negotiation skills of the German Presidency.

"This means that, already from this summer, mobile phone customers will start benefiting from substantially reduced roaming charges when travelling from one EU country to another. Europe's internal market will finally become truly borderless, even for mobile phone bills."

Originally, the 2006 European Commission proposal had suggested reducing mobile roaming charges within the EU by up to 70 per cent, as an instrument to complete the internal market. Despite the Commission's repeated appeals to mobile phone service providers to reduce their rates, until the new measure comes into effect, the use of mobile phones in other EU countries remains on average four times more expensive than domestic mobile phone calls.

This burden is carried by tourists and small and medium-sized companies with cross-border business activities. A consumer Website on roaming tariffs from across the EU, a Commission-led transparency initiative, exposed flagrant roaming prices of up to €12 for a four-minute call.

However, despite the fact that this information was passed on to consumers, mobile phone companies remained unrepentant. The Commission was forced to regulate to change their behaviour.

The European Parliament's role in this issue is also worth underlining. Indeed, last Wednesday, the Parliament voted through a first-reading compromise agreement on 'Roaming on public mobile networks'.

In doing so - and in negotiating a prompt entry into force of the regulation - the Parliament has also given the initiative the necessary boost. The compromise, which led to this decision, was adopted by an overwhelming majority of MEPs.

According to information supplied by the European Parliament, the crux of the package reflects the very same issues that held the key to the roaming dossier from the outset: caps on wholesale and retail charges, the choice between 'opt-in' and 'opt-out' models, transparency requirements, entry into force and future review of the legislation.

However, inasmuch as the issues are the same, the solutions - in the spirit of compromise - are slightly different. According to the compromise, the average wholesale charge (excluding VAT) that a 'visited' operator can levy on a roaming customer's 'home' operator for the provision of roaming calls will be capped at €0.30 per minute. (The Council, at the outset of negotiations, had proposed placing a cap of €0.36 on the average wholesale price.)

The cap, in line with MEPs' proposals, will decrease automatically by €0.02 per year over a three-year period after the regulation's entry into force. The maximum retail charge (excluding VAT) for regulated roaming calls, meanwhile, will be capped at €0.49 per minute for calls made and €0.24 per minute for calls received.

The Industry Committee had voted, in its original report, for caps of €0.40 for calls made and €0.15 for calls received. The Council, meanwhile - having initially called for caps of €0.50 for calls made and €0.25 for calls received - entered negotiations with the EP by proposing caps of €0.60 and €0.30, respectively.

The cap for outgoing calls will decrease automatically by €0.03 per year; the cap for incoming calls will decrease by €0.02 after the first year and €0.03 after the second year.

As MEPs insisted, home providers will have to offer the Eurotariff to all their customers - and to do so actively, clearly and transparently.

In addition to the Eurotariff, every home provider could also offer "a fair use, all-inclusive monthly flat rate to which no charge limits apply". Such a flat rate would include both voice and data roaming services (including SMS and MMS).