Telefonica criticizes latest EU roaming proposals

Telefonica says ultra-low roaming caps would hamper competition, following a proposal by a member of the European Parliament to halve the retail caps that Neelie Kroes put forward in July.

It would be counter-productive to make voice, text, and data roaming too cheap, Telefonica has argued in response to strict new proposals by a member of the European Parliament.

Excessively low retail caps would make it too unprofitable for new investors to enter the European mobile market, and stymie the Commission's goal of increasing competition, Telefonica regulatory chief Robert Mourik told a European Parliament debate on Tuesday.

"Don't prescribe a structural solution if you don't think it will work in the first place," Mourik said, referring to less stringent proposals put forward by the European Commission. "When we look at the latest proposals... my impression is you actually think that the structural solution won't work and you need price caps that are extremely severe. Those are bare-bone prices. Most [smaller operators] won't be able to make any money or even break even at any stage. Those price caps are not really conducive to attracting new investors."

Read more of "Telefonica balks at new EU roaming proposals " at ZDNet UK.