EU to get tough with 3G operators

Third-generation (3G) mobile operators face tough scrutiny from the European Commission and won't be allowed to overcharge for services, despite the high prices paid for licences.

Mario Monti, European Competition Commissioner, said in a speech in Barcelona on Thursday: "I can assure you that the mere fact that in some countries third-generation licences were or shall be awarded at astronomic prices will certainly not be an excuse for us for becoming lenient in implementing competition rules."

The warning comes as 3G licence winners in Germany have already started questioning whether 3G will live up to the hype and the high-priced licence, as revealed by vnunet.com sister title Computing.

Bidding in the UK government's spectrum licence auction, held in April, topped £22bn, sparking fears that the cost of building the networks will leave consumers with much higher charges.

Monti added: "We should not consider the huge investments made in acquiring the licences as a justification for excessive consumer prices, unacceptable concentration levels or leniency on state aid."

T-Motion, the mobile services arm of Deutsche Telekom, has said that 3G pricing is likely to be double that of current telephone costs, while earlier this week the Communications Management Association said that 88 per cent of its members believe the full cost of 3G licences will be passed on to the customer through high equipment and service prices.