EU Approves Roaming Rate Caps

Roaming rates in the EU are set to drop as the bloc agreed to move toward placing caps on what carriers can charge to traveling consumers, despite the protests of the wireless industry.

The roaming caps take effect at the end of this month, with consumers likely seeing the first benefits beginning in August.

The new policy took less than a year to go from idea to law, and the industry attempted to have the legislation struck down by claiming it would cut into their profit margins in an already competitive industry.

However, lawmakers continued to press forward, and even got more than a dozen nations who voiced opposition to the policy late last year to change their minds. All 27 member states of the EU voted to pass the new law Thursday.

EU officials point to excessive roaming rates as a problem for the bloc's citizens. A study found in one case a carrier was 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 euros by 2009.

Obviously, reaction from the EU and the industry were completely the opposite of one another. European Commission President Jose Manuel Barosso said that for too long, European Businesses were forced to pay rates much higher than Americans would for placing a call, for example, from California to New York.

"Realizing a Europe of results is not the task of the Commission alone, but of all institutions," he said of the Parliament's swift work in making the law a reality.

The GSM Association acted differently, however. "We're talking about a precedent," a spokesperson said. "Regulating retail prices in this way is not what free market is about."

In addition to the cost of roaming, the EC is also keeping a close eye on the prices for data and text messaging.