September 24, 2008

Hold the Phones!

By: AF Editors

Yesterday, the European Commission announced a plan to cap international text messaging fees.

From the EU Observer:

Mobile services used abroad – known as ‘roaming’ within the industry – but still inside the European Union should not be “substantially” more expensive than those used domestically, [EU information society commissioner Viviane Reding] said, adding that the commission proposal should bring about a 60 percent reduction in SMS prices.

The commission paper argues that prices for roaming SMS services appear to be “broadly stable”, but also “significantly above equivalent domestic SMS services with no clear justification.”

And then, shockingly:

[B]ig operators such as Vodafone and T-Mobile have warned that the plans could mean an end to free handsets and drive up the cost of owning a mobile phone, forcing 100million Europeans to ditch theirs.

So… cut into a company’s bottom line somewhere, and they try to recoup the losses elsewhere? How curious, this “profit motive.”