House of Lords backs call for better mobile value

A House of Lords committee, which is investigating mobile phone roaming costs, has backed calls by the Germans for a cap on such charges.

The Lords EU Sub-Committee on the Internal Market said the German proposals of a wholesale price cap of 30 eurocents (20 pence) per minute should 'significantly' reduce the price consumers pay throughout Europe.

The Committee has now written to the European Commission supporting the proposal by the Germans, who have Presidency of the Council of the European Union this year.

The letter sent on Friday 9 March follows the launch of an inquiry by the Lords into roaming costs in January.

The Committee said there is a 'lack of data on the true costs to operators of roaming phone calls made by their customers'.

Lord Freeman, chairman of Lords Committee, stated: "The fact that so many companies have taken steps to reduce roaming charges once faced with the prospect of EU regulations suggests charges have been excessive in the past.

However it believes that the industry should be capable of self-regulation. If this can happen it said current regulation should end in three years time.

Although the Committee is expected to produce a full report in April, in an interim statement it said: "The EU Commission is right to attempt to tackle this issue as excessive roaming charges act as a barrier to the functioning of the single market both in terms of the actual cost of phone services and more widely by the extra costs they impose on small and medium size businesses attempting to operate across the EU.

"There is a 'strong case' for wholesale regulation of roaming charges with the wholesale cap of 30 Eurocents per minute being an appropriate level."

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