Today is the deadline for mobile phone companies to cut charges for sending text messages in member countries of the European Union. The EU has also told companies that they must reduce the cost of internet access while abroad.

But the industry body, the GSM Association, has opposed the move, claiming that companies would find it difficult to absorb the reduction in so-called call termination charges, with the result that customers might end up paying for more for a mobile phone.

If they do not obey the EU instructions, legislation may be brought in to change the way operators charge customers. At present charges vary wildly, because 27 national authorities regulate the fees charged by one operator for handling calls from another, and, according to EU Telecoms Commissioner Viviane Reding, customers end up losing out: "The consumer pays the price for these gaps between national regulatory policies."

According to EU figures, call termination charges range from 2 (euro) cents per minute in Cyprus to 18 cents in Bulgaria. The EU wants the charges to be harmonised across the EU by 2011, and last week, the Commission announced plans to lower the cost of mobile phone calls by up to 70% by reducing the fees operators charge each other.

---

Tag this article :