---

Mobile Phone Charges: EUC Report

My Lords, I thank my noble friend Lord Freeman for giving us the opportunity to debate this European Union Committee report as well as the noble Lords, Lord Mitchell, Lord Dykes, and Lord Lee of Trafford, for their hard work on the sub-committee that prepared this report and for taking the time to speak to us today. I should have mentioned that my noble friend Lady Eccles of Moulton, who was also on the committee, is in her place. I congratulate the committee on the timeliness of its report; we heard yesterday that the European Parliament voted for action on this front, which must be very pleasing to hear. The small number of speakers on this debate is certainly not a reflection of its importance. The interesting speeches we have heard have shown how much of an impact mobile phone charges can have not only on those who travel for pleasure but on businesses operating in countries across the European Union. I should like to open my remarks by saying how glad I am that this report is being debated at all. Far too often, European Union regulation is imposed on this country without adequate scrutiny. This lack of due process leads inexorably to goldplating, misunderstandings and the sort of public backlash that is in no one’s interest, even when the regulations are to be welcomed, as they are in this case. We have seen too many examples in recent years where government legislation to introduce new European Union rules have shown them to be far in excess of what is required, and I hope that this will not be the case here. We must instead move to a more consistent and rigorous process where legislation imposing EU regulations is subjected to regulatory impact assessments and other appropriate analysis, as national legislation is. We in this House and another place should be making informed decisions on the validity and extent of EU regulations, rather than having to choose between trusting blindly in the Government or resorting to knee-jerk opposition in the face of inaccurate media stories. On these Benches we broadly welcome these regulations. Sub-Committee B of the European Union Committee, with its remit to focus on the internal market, has flagged up some important points. In general, we hope that placing a cap on mobile phone charges will significantly reduce the cost for small businesses and tourists who use a mobile phone in the European Union. I am pleased by the provisions for further data collection. As the committee’s report pointed out, the decision to impose the regulations was based on rather inadequate data. It is crucial that this is addressed immediately. Without accurate EU-wide data on how the caps are affecting customers and providers, how can a decision be made on whether the regulations should be extended? As it appears that one of the primary causes of the excessive prices was the confusion and obscurity that surrounds the pricing structures and comparative tariffs, better data must be collected and made widely available. There cannot be effective competition in a market where not even the Government, let alone the consumer, can establish what the pricing levels are. For this reason, I welcome the obligation for providers to inform the customer what charges they will be liable to. It appears from the report that a major failing has been the regulatory bodies in other European Union countries. My noble friend Lord Freeman and I congratulate Ofcom on showing its effectiveness and value by providing accurate and extensive data for the United Kingdom. I have heard nothing but praise for the constructive and informed role that it has played in the debate at national and European Union level. What steps is the Minister taking to encourage regulators in other European Union countries to learn from Ofcom? As we have heard, improved monitoring should spur greater competition also in areas that the price caps do not affect; namely, texting and data roaming. The greater competition that we have recently seen among providers for voice roaming will, I hope, be replicated in these other services. It would be a great pity if it was found necessary to impose similar regulation on data roaming. I remain optimistic that now that consumers have been made more aware of the potential for improvement, they will demand a more competitive service from their provider. Finally, how glad I am that the compromise agreement includes the sunset clause. Regulations such as these, while necessary in this instance, are a very blunt instrument. The rapid lowering of prices, even in anticipation of these regulations, gives cause for optimism that they will not need to be extended and that the greater transparency and awareness will keep the market working more effectively in the future. Repealing unnecessary or outdated legislation is unfortunately given a rather low priority by many Parliaments. I am glad that, in future years, these regulations will not be added to the enormous pile of meaningless and petty restrictions that no longer have any practical use. These regulations will be a short, sharp shock to the industry, and I look forward to seeing the telecoms market return to a less restrictive level of regulation, but one where consumers are able to use these services at a reasonable price.