Parliament to clear EU mobile-calls tariff cuts 

After several rounds of talks, negotiators from the three EU institutions arrived at a compromise  that was supported almost unanimously by the Parliament's Industry Committee on 22 May.

The compromise is a single 15-page amendment, which addresses all the issues debated since the Commission presented its initial proposal. In one of the most hotly contested issues during the negotiations, it was finally agreed that operators would have to lower roaming tariffs for all users, not just for those who have requested it (opt-in vs. opt-out debate), three months after the entry into force of the Regulation.

According to the compromise, roaming tariffs will be lowered in three steps:

• Outgoing calls would be capped at €0.49 cent (€0.24 for incoming calls), immediately after the regulation is published in the Official Journal;
• one year later (2008), the cap would be lowered to €0.46 (€0.22 for incoming calls), and; 
• after another year (2009), it would we lowered again to €0.43 (€0.19 for incoming calls).

At the same time, the wholesale rate that network operators charge each other to connect a call would be limited to €0.30 a minute in the first year and lowered to €0.26 in 2009.

However, numerous mobile phone operators across Europe have already introduced special rates for frequent travellers. In many cases, those rates are lower than required by the new EU Regulation.

In the debate on 23 May 2007, ITRE chairwoman Angelika Niebler declared for the EPP-ED group: "We have good news for citizens of Europe today", adding that "this is a success for the Parliament. We were wrestling with the Council fiercely." Addressing industry, Niebler said: "All of us are aware that regulation of retail charges is a very heavy instrument. But we had to step in. This was a one-time action, and it does not mean we will take the same approach in the future."

PSE MEP Reino Paasilinna  said: "This legislation will affect the lives of hundreds of millions of Europeans." He recalled that "already five years ago, when I was rapporteur for the telecoms package, we insisted on mobile charges coming down", adding that "it is quite incredible that we can't get information on charges on the screens of mobile phones." Paasilinna hinted that the EU might regulate not only voice calls over mobile phones: "My question to the Commission is: When do we get a proposal for data communication?"

ALDE MEP Šarunas Birutis carefully welcomed the proposal: "If the charges go down, we will use our phones more - thus the income of operators will not go down." The Liberal MEP added, however: "Let me stress that neither my colleagues nor I believe that in principle market regulation is a positive instrument." He expressed his hope that after a three-year period, regulation will not be necessary any more. 

Green MEP David Mintz Hammerstein said: "We have set a practical example for citizens of Europe of what Europe is all about. We have stood up for the citizens of Europe", adding, however, that the outcome "could have been even better for mobile customers". Hammerstein criticised the Council: "The Parliament stood up for citizens, the Council on the other side defended the interests of the industry, of national champions."

GUE/NGL MEP Umberto Guidoni called the compromise "a recognition that the market has failed to increase competition and reduce prices", adding that "the rates being charged are still too high. He called "the idea of setting a ceiling a positive precedent". 

The GSM Association (GSMA), which represents more than 700 mobile operators around the world, has warned that consumers should not celebrate yet, as phone companies could be forced to increase domestic charges in order to make up the shortfall. "We're disappointed. The price caps are very low. They leave no room for competition below those levels. They will become the standard tariff," said David Pringle, spokesman for the GSMA. He said that the proposal "smacks of a planned economy-style approach to the market", and added that informing all customers of their tariff choices would be a "huge exercise in logistics".