EU says proposal to cap text message prices in the works



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BRUSSELS, July 15, 2008 (AFP) - European mobile phone users could pay less to send cross-border text messages under plans the European Commission is preparing, fed-up that operators have left its calls to cut prices unanswered.

The European Union's executive arm said Tuesday it aimed to bring forward a proposal in October to regulate prices of text message roaming, frustrated that consumers are paying too much.

At an average 29 euro cents (46 US cents) per cross-border text message, the price has barely budged since EU Telecoms Commissioner Viviane Reding threatened to impose a price cap at the beginning of the year if operators did not cut rates.

The commission is also frustrated that operators have not lowered prices in the fast growing market for surfing the Internet over mobile phones and is considering action there too.

'It is not a good sign for the competitiveness of Europe's mobile industry that it still hasn't got the message that credible price reductions are needed to avoid regulation,' Reding said.

Europeans send in total 2.5 billion text messages while abroad in Europe every year, at a cost of 10 times the domestic price.

Although the average price is 29 cents per text message, the price ranges widely between EU countries with Belgians shelling out as much as 80 euro cents for text messages made while abroad in the 27-nation bloc.

The chairman of the European Regulatory Group Daniel Pataki, whose association brings national regulators together, said 'a price cap between 11 cent and 15 cent per (text message) would be appropriate.'

The action on text messages comes after the commission successfully pushed through a regulation capping the price of making voice calls while abroad in the EU.



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