EU to introduce mobile data pricing cap in July

As anticipated, European Union telecoms chiefs last week officially endorsed a plan introduced by EU Telecommunications Commissioner Viviane Reding to establish new mobile data retail price caps. The changes, expected to roll out across all 27 EU member nations in July 2009 pending the expected approval of European Parliament, call for limits of 11 euro cents (14 cents U.S.) on retail charges for cross-border texting, a substantial cut on the European average of 29 euro cents (36 cents U.S.) The ministers also backed a cap of 1 euro per megabyte ($1.26 U.S.) for data roaming charges--Reding's plan additionally includes a mechanism that will allow for service termination if a data bill hits 50 euros ($63.10 U.S.).

European mobile operators fought tooth and nail against Reding's proposal, with global trade group the GSM Association countering that the average price of SMS roaming services in the EU has declined by 18 percent in the last year, which it credits to the introduction of flat-fee bundled text pricing. The GSMA declared its "disappointment" that the plan earned the ministers' approval. "In the current economic climate governments should be working to encourage investments," said a GSMA spokesman. "The biggest concern is extending the use of retail price regulation which is a very extreme step and could deter investment in new services."

For more on the EU data pricing cap:
- read this BBC News article