EU Passes Roaming Legislation

Despite the protests of the industry, The EU said Wednesday it had approved a measure that caps roaming rates within the 27-nation bloc. Carriers have one month to comply.

Approved by EU Parliament, the legislation only needs to be approved by the EU's telecommunications ministers. Following the approval, the resolution takes effect June 29, meaning consumers could see cheaper rates as soon as August.

It will be up to the consumer whether to stick with their current plan or switch to new EU-mandated plans that include the cheaper roaming rates. Frequent long distance callers could save up to 70 percent on their bills.

EU officials point to excessive roaming rates as a problem for the bloc's citizens. A study found in one case operators were charging as much as 12 euros ($16 USD) for a four-minute call.

Under the new regulations, the cost of that same call will be 1.96 euros when the rule takes effect, and falling to 1.72 euro by 2009.

"Today is a good day for consumers and business travelers in the EU," Telecom Commissioner Viviane Reding said. "Europe's internal market will finally become truly borderless, even for mobile phone bills."

Such large cuts in roaming revenue could hit operators hard. As much as 18 percent of all revenues are gained from roaming charges, according to recent data. The GSM Association protested the rules in a statement.

"These proposals are designed to further a narrow, short-term, and populist agenda and run counter to the wider interests of consumers, the business community and ultimately the European Union," CEO Rob Conway said in a statement.