EU: licence to roam?

On Friday, EU telecoms commissioner Viviane Reding will decide whether to propose legislation to force mobile companies to cut the amount they charge to use their networks overseas.

Reding gave operators a June 30 ultimatum to name their price for roaming text messages and 'data' such as using a laptop or mobile to check emails and download files outside a home state. Submissions from mobile phone operators show that the cost of data roaming in Europe has dropped 25% in the last six months, but that is insufficient for Reding. She may conclude that data is too young a market and instead seek some kind of transparency measures, yet caps on text charges are likely. The commissioner has two price targets: 12 euro cents per text and 35 euro cents per megabyte for data.

Reding, who wants to reduce mobile phone rates by 70% within three years, angered mobile phone operators last year by introducing caps on roaming fees -- charges for mobile phone calls made and received abroad. Broadly speaking, her plans have been welcomed by new market entrants, which are keen to abolish incumbents' dominant positions. Above all, they demonstrate the Commission's continued authority and regulatory assertiveness despite the recent Lisbon treaty setback.