By Joey Gardiner, 26 November 1999 17:24
NEWS EU telecoms commissioner, Erkki Liikanen, today sought to reassure mobile operators over concerns that they are to be prevented from making profits from interconnection charges. This comes in the light of complaints from the GSM Association that current EU policy would stifle growth and investment in the mobile industry, and could actually be anti-competitive. Talking exclusively to Silicon.com, Liikanen said that the Commission was looking at every option available in its current review of regulation, and would retain at all times the principle of "open global competition". He said that the Commission would ensure the best deal for the consumer. "We should aim at technological neutrality between fixed and mobile, but not so that we start to over-regulate GSM." At present calls from fixed lines to mobiles often cost considerably more than calls from mobiles to fixed lines, because of the much higher interconnection charges that mobile operators charge. A current EU directive will require established mobile operators to charge interconnection fees based on how much it costs them to provide the service, rather than the commercial value. It will be up to the regulators in each country to decide how much profit, if any, companies are allowed to make. Rutger van-Basten Batenburg, chairman of the GSM Association Europe, which represents mobile operators' interests, said that the present system would halt investment in mobile networks. "If we cannot charge for interconnection to our networks, then there is no incentive to invest in them." However, Tom Jeffery, consultant at Ovum Interconnect disagreed, he insisted, "This will make them work harder, but this won't stop investments in networks." The directive is currently under review by the Commission and a report is expected in May 2000.
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