EU aims to restructure telecoms market
In its newest attempt to overhaul the European Union's telecommunications industry, a proposal to place a price cap on cross border phone calls in Europe was made. This was included in a list of recommendations by the European Commission, amongst them is a veto power over sales of the mobile spectrum.
Also listed as a proposal would be cutting red tape for operators with cross border business, permitting providers to charge higher for data heavy services at high speeds and harmonizong sales of the mobile spectrum in the European Union.
The goal of the proposals is to foster the development and encourage telecommunications firms to put in more investment in the broadband network infrastructure. This would ensure that EU citizens would be able to download content from the Internet as quickly as those in Asia and in North America.
It is also hoped that by limiting costs in the EU, the benefits would redound to the telecommunications firms. Currently, international mobile calls vary from EUR0.35 to EUR1.19 per minute. Revenues are expected to fall by half a percentage point before the market corrects itself as more users flood the market.