EC Govts. Want More Time for Operators to Cut Roaming Tariffs
EU telecom ministers split Mon. over EC plans to force mobile operators to curb international roaming fees. While generally supporting govt. intervention, a majority backed a France-U.K. proposal for a “sunrise clause” giving providers 6 months to cut prices to an acceptable level or face caps. The standoff, which the incoming German Presidency must try to resolve, was billed as good news by the Commission and operators alike.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
The EC plan seeks to limit wholesale and retail international roaming rates to around those paid by mobile phone users calling within their home countries. Ministers “broadly agreed” on the need for legal action to lower rates and that the EC proposal is “a step in the right direction,” said a provisional Finnish Presidency report on this week’s talks. Transparent pricing can help by boosting consumer satisfaction, but only regulation can cut costs, the memo said. Regulation must give users substantial price breaks quickly, it said.
Some govts. fear caps will harm competition. Tariff regulation must be “clear and simple” and leave operators the option of flexible pricing, the Presidency memo said: “More detailed discussions are still needed.”
This first ministerial discussion of the proposal was “very positive,” a spokesman for Information Society & Media Comr. Viviane Reding told us. All govts. favor regulation and agree it must be at the wholesale and retail levels, he said. But several matters remain open, including the rule’s scope rule, whether it should cover data an voice, the regulatory mechanism and where to set fee ceilings.
Britain and France urge a “softer approach,” with operators having more flexibility. Germany believes the EC version is “too generous” to mobile providers at the retail level. Last week, Germany floated an even tighter retail proposal than the Commission’s, Reding’s spokesman said.
The U.K.-France proposal recognizes that “rigid retail price caps” go too far and will reduce operators’ ability to offer innovative packages, a GSM Assn. (GSMA) spokesman said. The Council debate reflects the European Regulators Group stance favoring wholesale, not retail, regulation, the spokesman said. Retail prices should be allowed to fall in their own way, he added -- a message the organization will keep sending govts. and legislators.
The “very constructive debate” will continue under the German Presidency, which takes office Jan. 1, Reding’s spokesman said. Political accord is likely to come during a March informal Council meeting in Hannover, he said. The roaming regulation also needs European Parliament approval. Negotiations with lawmakers with a view to a first reading agreement will start at in Jan., the Presidency said.
Reding is “confident” substantially lower roaming rates will be in effect next summer, she said at a Tues. Telecom Italia reception in Brussels. As a regulation, not a directive, it will become effective immediately after adoption.