EU challenges T-Mobile, Vodafone on roaming

Deutsche Telekom's T-Mobile unit and Vodafone charge visitors from abroad too much when they use their mobile phones in Germany…

Deutsche Telekom's T-Mobile unit and Vodafone charge visitors from abroad too much when they use their mobile phones in Germany, the European Commission said today.

The EC has sent statement of objections to the two firms, charging them with abuse of their dominant position in the German mobile market.

"The Commission aims to ensure that European consumers are not overcharged when they use their mobile phones on their travels around the EU," the Commission said in a statement.

International roaming allows mobile phone subscribers to use their phones in countries where their own network has no cover. The Commission sent similar statements of objections in July to Vodafone and to mmO2, saying they charged foreign operators too much money for their customers to roam with their phones in Britain.

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In the German case, the European Union executive said an investigation showed roaming services yield profits several times higher than other comparable services.

For example, the Commission said, profits on roaming were far higher by T-Mobile and Vodafone than their charges to calls by subscribers of other phone networks located inside Germany.

The Commission said that both firms abused dominant positions in Germany at least until the end of 2003, and that T-Mobile's abuse started 1997 and Vodafone's in 2000. Both firms can now respond to the Commission's findings.