EU and mobile operators clash over call billing

By Huw Jones

BRUSSELS (Reuters) - Mobile phone operators may face a European Commission crackdown on what the EU executive sees as overcharging, but industry representatives said such legislation would amount to micro-management.

European Union Telecoms Commissioner Viviane Reding is concerned that some mobile operators are charging by the minute rather than by the second for calls within the EU made from abroad, her spokesman said.

"In some cases operators are charging you for a call of one minute two seconds what they can charge you for two minutes. This leads to overcharging on average of 24 percent for calls made and 19 percent for calls received," the spokesman told a news briefing.

Mobile operators say they should have the fundamental right to determine their own prices in a competitive market as long as they are transparent about billing increments.

"The regulation of billing increments within the Eurotariff or any other roaming tariff would amount to micro-management and would risk further erosion of competitive differentiation in the market," said David Pringle, spokesman for the GSMA mobile industry lobby.

"Billing increments are a point of differentiation that operators can use to appeal to customers with different preferences," Pringle said.

In France, Spain, Lithuania and Portugal, operators have to bill by the second, but national legislation is not practical for roamed calls, the Commission spokesman said.

"This is an issue national regulators have recommended the European Commission to address ... If you tackle this issue you have to tackle it in EU legislation. This is something the European Commission will consider in the weeks to come," he added.