Euro operators fight data pricing cap proposal

Europe's mobile operators are gearing up to make a last-ditch push against the EU's proposed pricing cap on cross-border text messages and data downloads, warning that regulation is limiting their capital spending and profit margins. EU telecoms commissioner Viviane Reding instituted a July 1 deadline [1] for operators to either cut the cost of cross-border text messaging or face legislative restrictions, seeking to bring down consumer costs as much as 70 percent from their current levels. But the GSM Association global trade body says carriers' capital spending has already fallen from 13 percent of revenues in 2005 to 11 percent a year ago and could fall even further, arguing the drop contradicts Reding's claim that roaming services are a source of excessive profits. The GSMA adds that some operators have already made substantial cuts to their data roaming fees, with T-Mobile UK slashing charges by 80 percent and Vodafone cutting its price per megabyte by 45 percent. According to The Guardian, only 64 of 95 operators responded to a letter mailed by Reding last month asking executives to make public details of their retail roaming prices and confidential information on wholesale charges--some carriers said they would require months to provide those details.

For more on the data pricing controversy:
- read this Guardian article [2]

Related articles:
European operators cut data roaming [3] charges
EU [4]: Harmonize mobile TV rules, regulation