Regulatory bottlenecks in the European mobile phone sector persist and the current EU framework is not yet applied consistently, a new report has found.

Unlike the situation in the United States, however, the report does not mention any significant problems with the availability of spectrum for mobile phone firms.

The seventh European Commission report on the implementation of the telecommunications regulatory package highlights several regulatory "divergences" in member-states.

It pinpoints two areas specifically concerned with wireless: the licensing and roll-out of high-speed mobile services, and the cost of mobile phone call termination.

Mobile call termination is the amount of money wireless firms charge other operators to connect customers to mobile networks.

The report noted that the Republic and Luxembourg had not yet issued third-generation mobile phone licences. Both countries are now expected to miss the January 2002 deadline to complete the licensing procedure, although a spokesman for the Luxembourg telecoms regulator has said they will proceed shortly.

It also warns that there may not be a level playing field for third-generation services because roll-out and coverage conditions vary considerably between member-states.

"These very contrasted situations risk, in practice, preventing the emergence of a level playing field for third-generation services," says the report.

It blames the relatively wide margin for individual action given to national regulators in the current licensing framework.

The report also expresses concern as to whether the mobile call termination market is competitive.