The European Commission is considering a proposal to scrap "roaming charges", the extra fee for receiving mobile phone calls abroad, according to Viviane Reding, the European Information Society and Media Commissioner.
As the owner of the most European mobile companies, Vodafone is estimated to collect more than 8 per cent of its revenue from "roaming" and will be worst hit by the EUs price cutting plan.
Reding said an EU regulation could also ensure that calls made abroad could be priced as if they were made back home.
For example, a British tourist making a local call in Spain would pay the same amount as if he had made the call in Britain, with a similar arrangement for pricing international calls.
"The EU regulation would ensure that operators do not charge operators from other countries substantially more than the actual cost," Reding said.
Reding hopes the European Commission will adopt the proposal for a regulation in June after further consultation. It is expected to come into force next year after approval from member states and the European Parliament.
Mobile phone operators say they have already acted to keep down roaming prices. They say calls abroad cost more than domestic call charges, because there are additional costs involved in delivering calls through foreign networks.
Vodafone has already announced the end of roaming charges for its Republic of Ireland customers who visit Northern Ireland and Britain.
"We feel this is an extra layer of regulation which is unnecessary," said David Pringle, spokesman for GSM Europe, which represents operators such as Vodafone.
EU plan for mobile phones
Tue, 28 Mar 2006
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