September 4, 2008
Vodafone warns European Union
Giant mobile operator, Vodafone, has said that around 40 million consumers may have to discontinue using their mobile phones if the mobile industry is forced to succumb to proposed European Union telecoms regulations. The firm has warned that it will be left with no other option than to increase its phone tariffs if the EU reduces mobile termination charges by up to 70% by 2012.
Mobile termination fees are the charges that mobile providers impose on each other when calls are connected to networks. The EU Telecoms Commissioner, Viviane Reding, said that this system of charging is excessive and should be tackled.
Vodafone, who are clearly unhappy with the EU’s position, carried out their own survey which they used as evidence to attack the EU’s proposals.
Industry experts have estimated that Vodafone may lose as much as £1 billion if they fail to stave off the EU’s recommendations.
British telecoms regulator ,Ofcom, also joined the debate by suggesting that mobile termination fees could be abolished in the UK after 2012.