In today's Telecommunication Council meeting in Luxembourg the Member States of the European Union gave the "green light" to the Roaming Regulation, thus paving the way for lowering the costs of cell phone calls outside the EU.
German Minister of Economics and Technology Michael Glos: "The German Council Presidency set itself the ambitious goal of having this project adopted after a single reading in the first half of 2007. With today's confirmation by the Council of Ministers we have now reached our goal in record time: excessive roaming prices are past history!"
After today's confirmation by the Telecommunication Ministers, the provision can already become effective at the end of June. Federal Minister Glos: "I am delighted that, after intensive and difficult negotiations, the solid and acceptable compromise was given the stamp of approval by the Ministers, and consumers will already be able to benefit from the Regulation this summer."
The provision will require mobile telephony operators to introduce a so-called "Euro tariff" that will apply in all 27 EU countries and in the first year must set a maximum price of 0.49€ for self-placed calls and 0.24€ for accepting calls. This maximum charge will be further lowered in the second and third years to 0.46€/0.43€ and 0.22€/0.19€. The wholesale prices for network operators are limited to a maximum 0.30€ and in the second and third years to 0.28€ and 0.26€.
The new Euro rates must be offered to all cell phone customers within four weeks of the Regulation becoming effective. The customers then have two months to opt either for this or another tariff plan. Customers who fail to express their wishes prior to the deadline will automatically be charged the new Euro tariff - unless they have already opted for special roaming rates prior to the Regulation's enactment (e.g. favorable business customer rates).
Core aspects of special interest to Member States and essential elements of the Council's position have been incorporated into the compromise negotiated by the German Presidency, the Commission, and the European Parliament. "We want a simple, clear, and effective approach that can go into effect rapidly!" according to Federal Minister Glos.
Contrary to the Commission's original proposal, the price regulation is restricted to the Euro tariff. All other tariffs continue to be permissible. This particularly uncomplicated approach which was taken at the German initiative provides secure protection for the consumer, avoids bureaucratic effort, and leaves operators with extensive scope for structuring rates, with the result that competition among the operators will remain. Speaking on this point, Minister Glos explained that "We have reached the goal of significantly lowering roaming charges, which to some extent have been dramatically overpriced. But it was just as important to leave room for innovation and tariff diversity, and thus not to endanger competition. In the long term, functioning competition is the surest guarantee for low prices and customer-oriented tariff packages."
The Council's proposal that the measure have a limited term of three years was also accepted, thus sending a signal to the branch and making it clear that this market intervention is an exception to the rule. Glos: "The deliberations of recent months happily sufficed to bring enormous movement onto the market. If the branch continues to move in this direction, the Regulation will be superfluous within three years."
The measure adopted today is important for consumer policy, justified in terms of economic policy, and a good contribution to European integration. The Regulation signifies the end both of excessive roaming rates and of the non-transparent jungle of tariffs. Thanks to the Council a reasonable balance has now been found between consumer protection and the preservation of competition.
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