E.U. gives final OK to legislation to cut roaming costs

The European Union's 27 governments gave the final approval Thursday to a law that will slash the cost of using a mobile phone abroad by around 70%, the German government said.

By the end of this month mobile phone operators will have to offer subscribers a capped rate for phoning or receiving calls while outside their own countries.

In the first year, roaming tariffs will be capped at €0.49 (US$0.66) a minute for making calls abroad and €0.24 for receiving them. It will fall to €0.46 and €0.22 in the second year and €0.43 and €0.19 in the third, respectively.

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The European Union's 27 governments gave the final approval Thursday to a law that will slash the cost of using a mobile phone abroad by around 70%, the German government said.

By the end of this month mobile phone operators will have to offer subscribers a capped rate for phoning or receiving calls while outside their own countries.

In the first year, roaming tariffs will be capped at €0.49 (US$0.66) a minute for making calls abroad and €0.24 for receiving them. It will fall to €0.46 and €0.22 in the second year and €0.43 and €0.19 in the third, respectively.

A rear-guard action by the U.K. in defense of mobile phone operators petered out and British Industry Minister Margaret Hodge was convinced to support the compromise package put forward by the European Parliament.

Mobile phone operators have lobbied hard to avert the law, which they see as unnecessary and harmful to competition.

German Economy Minister Michael Glos was chairing the meeting because Germany currently holds the six-month rotating presidency of the EU. He will announce the agreement reached Thursday morning at a press conference at 3 p.m. CET (1 p.m. GMT).

The IDG News Service is a Network World affiliate.