EU roaming talks fail again, but compromise in sight

Posted on 3 May 2007 at 07:43

EU institutions failed to agree on Wednesday on how to regulate the cost of making and receiving cell phone calls abroad but were moving towards a more industry-friendly compromise, a lawmaker and a senior official said.

Representatives of European Union countries, the Parliament and the European Commission still differ over the levels of price caps and whether customers should be automatically switched to the new rates or left to opt in to the new regime.

Both are key points of contention, but Paul Ruebig, one of two MEPs steering the rules through the parliament, said the chamber could make a U-turn and back the 'opt-in' proposal.

'We are willing to compromise on this point,' he told Reuters after a five-hour meeting between the three branches of the EU.

A senior Commission official said a 'third way' is now on the table, where those consumers who have chosen a package with a specific roaming aspect to it could be left to choose whether the new rates were in fact cheaper.

'Those that chose [a roaming package] have shown that they are aware of roaming tariffs,' the official said. 'We could accept opt-in for these customers.'

The Commission has always backed a proposal to automatically switch consumers to the new rates, and the official said this was still the EU executive's preferred choice.

There are 150 million roaming customers in the 27-member bloc of which, the Commission estimates, between 10 and 20 per cent have chosen roaming packages such as Vodafone's Passport tariff system.

Under the compromise, the remaining consumers would be automatically switched to the regulated rate, while new customers would choose which rate they would like to pay.

Critics of a full 'opt-in' proposal say it would fudge the rules as consumers could be unaware they are eligible and others may have difficulty switching, leading to most cell phone users remaining on their old rates.

But telecom operators, which have vociferously opposed the rules and say roaming prices are coming down in any case, prefer this option as it gives customers control over their bills.

The institutions also failed to agree on the levels of the caps.

The figures being debated range from 60 euro cents per minute for making calls and 30 euro cents to receive them, as suggested by current EU president Germany, to 40 euro cents and 15 euro cents, respectively, as proposed by the parliament.

Industry group GSMA said last week caps should be set at 65 euro cents and 35 euro cents at the very least in order to let operators compete for consumers. The Commission says Europeans are paying more than a euro a minute to make calls.

The Commission, which drew up the original proposals for the regulation and backs the idea of switching customers automatically to the regulated rate, is keen to have the rules in force in time for holiday-makers to benefit this summer.

But this timetable is getting extremely tight.

There will be another meeting on Thursday to try to solve the impasse, but if there is no agreement, a vote in the parliament on the regulation could be delayed to the week of 21 May from next week, Ruebig said.

EU Telecoms Commissioner Viviane Reding said that the Commission has done all it can to cut roaming charges and that a solution is now in the hands of parliament and the member states.

'I hope this summer citizens all across Europe will have something else to smile about while on holiday thanks to our efforts in proposing this regulation,' Reding said. 'The ball is now firmly in the court of the European Parliament and Council. It is time for them to step up to the mark and deliver for Europe's consumers and businesses. If all make an effort, lower prices already this summer are clearly feasible.'