EU seeks to slash texting costs by more than half

EU Telecoms Commissioner Viviane Reding has outlined plans to cut the costs of cross-border text messages by more than 50 percent. According to the EU proposal, cross-border text fees will drop from their current 29 cents (46 cents U.S.) to between 11 and 15 cents (17 to 23 cents U.S.). The legislation is expected to be introduced in October and may come into law as early as summer 2009. Reding had previously instituted a July 1 deadline for operators to either cut costs of their own accord or face legislative restrictions. She argues the 2.5 billion text messages sent annually by customers roaming in EU member states cost more than 10 times the amount spent to send a message locally. The Commission has also said it will seek an end to "bill shock" by calling for greater transparency on mobile web roaming fees.

Europe's mobile operators are vehemently opposed to the legislation, warning that regulation is limiting their capital spending and profit margins. 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.

For more on the EU proposal:
- read this TimesOnline article [1]

Related articles:
EU [2] to launch investigation into ringtone sites
EU [3] launches inquiry into mobile data roaming fee