The UK's Big Four mobile network operators – that's everyone except 3 –
have joined forces to protest at the EC's imposition of roaming charges – the Eurotariff - across the European Union. They're planning to take their fight to the European Court of Justice for
what they see as unnecessary meddling. They may have a point. Each national mobile market has its differences. For
example, it is far cheaper and easier to roll out a mobile network in Belgium or
the Netherlands (which are flat), than in Austria or Sweden – which are
mountainous. So why should operators in all four countries be forced to charge the same?
Save for the fact that it's proved an extremely popular measure, of course. The Big Four are worried what the EU's communications commissioner, Viviane
Reding, will do next. The answer is easy. She wants to start messing with the
so-called 'termination' rates. These are the charges which mobile network operators charge others for
connecting calls to their own network. In the UK, the comms watchdog – Ofcom – has recently made a ruling on this
very subject. Reding's proposals look very similar. With one big exception. She wants the mobile operators to drop the prices
that they charge to the fixed line operators. In effect, she wants to make it
cheaper for land lines to call mobile phones. This interference is all well and good. However, it doesn't take into account
the fact that the mobile operators were charged $ billions for the rights to a
3G licence in countries like the UK and Germany. Reding appears intent on attacking all the ways these mobile operators earn
revenues to pay for those licenses. Who's going to pay for the new spectrum which is being freed up, if the EU
turns around and says the maximum they can charge for a particular service is a
couple of pence?
