EU plans to cut mobile connection charges

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EU plans to cut mobile connection charges

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By Editorial Team (Friday, 27th June 2008)

Reducing fees charged by European operators to transfer calls between networks could significantly lower the cost of mobile use, according to the EU.

Telecoms commissioner Viviane Reding yesterday revealed plans to reduce call costs for EU consumers by making major changes to so-called termination rates, which currently make up about 20 per cent of phone operators' revenues.

Although there are currently 27 national authorities regulating fees imposed when calls pass between networks on the continent, Ms Reding intends to standardise such charges across the EU by 2011.

"The consumer pays the price for these gaps between national regulatory policies," she said.

EU data shows that termination rates currently range from two euro cents per minute in Cyprus to 18 euro cents in countries such as Bulgaria. The European commission has proposed a 70 per cent reduction in these charges across the board, resulting in big savings for mobile users.

The plan received a mixed response from industry figures, however, with T-mobile chief executive Hamid Akhavan describing the cuts as "too drastic".