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Telefonica Criticises EU On Proposed Text, Voice, Roaming Cuts

Telefonica has criticised a new set of voice, text and roaming price cuts proposed by the European Parliament.

According to an article on ZDNet, Telefonica regulatory chief Robert Mourik told the European Parliament the proposed price cuts would make European markets less inviting tp new investors and harm market competition.

Mourik was reacting to amendments carried out by European Parliament member Angelika Niebler in the draft about roaming regulations brought forward by EU commissioner Neelie Kroes.

Niebler has proposed to cut almost half the roaming costs originally proposed by Kroes.

"Don't prescribe a structural solution if you don't think it will work in the first place. 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," said Mourik to the European Parliament.

"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," he added.