E.U. Mobile Costs To Fall?

The European Commission is going to lower the amount operators charge each other to use their networks by 2011, which should lead to lower charges for consumers in Europe.

The European Commission is taking steps to change the termination fees, which are the amounts mobile operators charge each other to use their networks. The plan is that by 2011 those figures will be harmonized across Europe, as opposed to the national fees currently enacted – currently 27 different ones. The belief is that this will result in lower call costs for consumers.

These termination fees are nine times higher for mobiles than for landlines, according to the BBC, ranging from two Euro cents a minute in Cyprus to 18 Euro cents a minute in Bulgaria. The estimate is that by bringing all these fees into line, calls could become 70% cheaper.

EU Telecoms Commissioner Viviane Reding said:
"The consumer pays the price for these gaps between national regulatory policies."

However, the GSM Association, which is the mobile industry body, opposes the cut, claiming many operators would have a hard time absorbing the termination fees, which could result in higher consumer costs.