EU Cell Carriers Fight Roaming Fee Cap

The European Commission announced a plan Wednesday to deal with cellular roaming charges, saying it wanted to cut fees by up to 70 percent, but by giving the carriers a chance to make changes themselves. While consumer groups have applauded the move, carriers have rejected it saying the policy would cause an increase in prices.

A move by the EC would only come as a last resort. Regulators said they wanted to give carriers a chance to show that they could self-regulate, and cut fees themselves. However, if they refuse, the regulating agency would step in and press the EU and Parliament to act.

The GSM Association, which represents mobile carriers worldwide, called the regulations unnecessary, and pointed to price cuts already made by the carriers. A plan recently implemented would reduce rates by about 40 percent, the GSMA said.

Additionally, the group said the plan would do more harm than good, and would prevent carriers from bundling roaming minutes within plans.

"While the Commission has amended several elements in its original proposals in response to concerns raised by the industry and regulators, the GSMA believes its new proposals would still do significant damage to the European roaming market and are not in the interests of consumers," it said in a statement.

The GSMA also criticized moves by the EU Commission to cap prices on roaming fees, which it claims carriers make nearly a 500 percent profit on. The industry said such a cap was a mistake, as it would limit its ability to tailor products to the specific needs of various customer groups.

"The industry is delivering cuts in roaming prices today, well before any regulatory intervention would come into force," GSMA CEO Rob Conway said in a statement.