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Mobile Phone Charges: EUC Report

My Lords, as one whohas supported the concept of closer European co-operation over 40 years, originally being a member of the Manchester Common Market Group and more recently being chairman of the Northwest in Europe campaign, I am delighted to participate in today’s debate. The report discussed here today is on draft regulation, which is important because of what it represents. It is not just legislation that will help to reduce the excessive prices European consumers are charged when using their mobile phones abroad; it is a good example of how legislation on the EU level can actually make a difference to the everyday life of the citizens of EU member states. The cost of roaming could not be dealt with individually by member states. The cross-border nature of this service made it impossible for national regulators to act. Action on the EU level was required, and the Commission’s proposals, as amended by the European Parliament, the member states and the Council of Ministers, aim to do just that. They offer a solution at European level that will benefit every traveller who uses his or her mobile phone when abroad in another EU member state. All in all, it was a well received report that contributed to the debate and fed in important recommendations to the decision-making process in Brussels. I join my colleagues from the committee, my noble friend Lord Dykes and the noble Lord, Lord Mitchell, in paying tribute to our chairman, the noble Lord, Lord Freeman, and to our colleagues. We had a very happy committee under the noble Lord’s chairmanship. I also pay tribute to our committee staff. The agreement announced this week should reduce roaming charge bills by between 50 per cent and70 per cent. In the Financial Times today, Nigel Farage, the leader of UKIP and a British MEP, is quoted as saying that in his view the law is a publicity stunt: "““Frankly, it smacks of communist central planning when bureaucrats and politicians think they know what the right market price is. They are always wrong””." I am a little disappointed that the noble Lord, Lord Pearson of Rannoch, is not in his place. If he were, no doubt he would be attacking the agreement which so demonstrably benefits so many of us who travel overseas or go there on business. There is a suggestion in the media and a number of other quarters that perhaps mobile phone companies will seek to replace lost revenue and profits by raising charges in their national markets. The national Governments in the EEC have various differing regulatory powers in individual member states and monitor in different ways. In the UK we have, thankfully, a free market. I hope that genuine competition will keep prices down and that consumers who are accustomed to a certain price level for mobile use will be on their guard against artificial price rises. The UK regulatory authority, Ofcom, will need to be extra vigilant in policing our market. In conclusion, I commend our report and welcome the European agreement with the caveats so clearly set out by our chairman, the noble Lord, Lord Freeman.