MOBILE TELECOMMUNICATIONS : COMMISSION ENDORSES FRENCH REMEDIES.

The European Commission has welcomed the proposal by the French telecommunications regulator (ARCEP) to control the termination rates charged between mobile phone operators. These wholesale charges cover the costs of switching calls from one network to another.

In a letter addressed to ARCEP, on 27 November, the Commission welcomes the proposed regulatory measure. It is a "very important step towards the elimination of price distortions between phone operators in France. The decision will lead to lower consumer prices for mobile calls while facilitating investment and innovation in the entire French telecoms sector," notes the Commission.

The measure in question imposes a price reduction plan on French mobile phone operators SFR and Orange France, setting ceilings of: 0.065/minute to 30 June 2009; 0.045/min to 30 June 2010; and 0.03/min to 31...