EU call charge changes 'could affect mobile firms'

Vodafone has warned that new call charge proposals put forward by the EU could be damaging for mobile phone firms.

The company says that plans to bring termination rates – which is how much one phone company charges another to connect a call – could see consumers hit with higher costs.

"If you regulate prices at retail level, there will be consequences of this," a Vodafone spokesman said.

"The expectation will be that costs and prices will go up because companies do need to cover their costs.

"It is naive to suggest they don't."

The company believed that if fees are forced up, many mobile phone users would cease to make calls as regularly.

In June, EU telecoms commissioner Viviane Reding said: "Call termination markets in the EU need a regulatory plumber.

"Truly cost-oriented termination rates will increase competition to the benefit of consumers."

Meanwhile, Vodafone has added new colours to its VF 527 phone with customers now able to buy the handset in moss green, mandarin Orange, aqua blue and pink.

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