IRELAND’S TWO largest mobile operators, Vodafone and O2, are among a group of companies challenging a 2007 decision by the European Union to place a cap on the cost of calls when travelling abroad.
The legislation passed by the European Parliament in May 2007 meant the maximum charge was reduced to 49 cent per minute for making calls when travelling within the EU. The cost of receiving a call was capped at 24 cent a minute.
A group of mobile operators, which includes Vodafone, Telefónica subsidiary O2, Deutsche Telekom’s T-Mobile unit and France Telecom’s Orange, yesterday launched a challenge to the law at the European Court of Justice.
Lawyers for the companies said the legislation was adopted using flawed reasoning.
The EU imposed a blanket, widespread regulation without first seeing whether there’s a less intrusive remedy, David Pannick, a barrister for Vodafone, told the court in Luxembourg yesterday.
“The decision to circumvent the national regulatory authorities, to disregard other options and impose a uniform price cap is manifestly disproportionate,” Mr Pannick said.
Joao Rodrigues, a lawyer for the European Parliament, said the law aims to correct a situation where national regulatory authorities didn’t have the necessary tools to take decisive action on pricing.
If the challenge is successful it would allow operators to set their own pricing for calls made while roaming.
Before the passing of the legislation many customers paid significantly more than 49 cent per minute to make a call.
At the time, EU telecoms commissioner Viviane Reding, who has been a fierce critic of mobile charges, said that some consumers would see a reduction of as much as 70 per cent with the new tariff.
A victory for the operators would also cast doubt over a similar law capping the cost of mobile internet and data services when travelling, which was only passed in Strasbourg last week. – (Additional reporting Bloomberg)