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Brussels set to rein in charges to mobiles
Posted: 27-Mar-2002 [Source: FT]

[The European Commission looking into new regulations which may cut mobile telecomm profits from termination charges--fees fixed-line operators pay for connecting to wireless networks.]

by Daniel Dombey and Francesco Guerrera, Brussels -- "The European Commission is planning a crackdown on mobile phone companies with tough new rules that could force them to cut prices and lose revenues.

"The Brussels authorities are concerned that mobile phone companies are making too much profit by charging fixed line operators high prices for connecting to the network. The fees - known as call termination charges - account for up to two-thirds of the retail price of a call to a mobile phone and for a substantial part of the revenues of mobile phone groups, according to some estimates.

"The Commission's proposals, seen by the Financial Times, will be published in the next few weeks. If its recommendations are followed, they would make it easier for national telecommunications regulators to force mobile phone companies to reduce excessive call termination charges.


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