Labour conspired with mobile-phone companies to let them impose high bills on consumers for international calls, according to documents obtained by The Times.
Frank messages involving civil servants and a minister detail how Britain led a dogged campaign to prevent Europe imposing swingeing cuts in “roaming” charges.
At one point, when negotiations suggested that the EU would impose a tough line on the companies, a civil servant e-mailed Vodafone to say: “UK still not happy bunnies.”
Consumer experts were appalled by the disclosures, under the Freedom of Information Act, which show that the Government and phone businesses acted in concert to fight compulsory price cuts.
The EU finally imposed maximum rates per minute of 34p for international calls and 17p for receiving a call in a foreign country. These rates were less drastic than operators had feared. MEPs had been pressing for 27p and 10p respectively.
The documents show that Britain’s lead negotiator regularly e-mailed major mobile companies. At an early stage, he told BT: “Fight goes on.” He warned Vodafone about an initiative by a senior European official, adding: “I assume we want to avoid at all costs!”
When an inaccurate report circulated that a deal had been reached, he quickly e-mailed Vodafone from a railway station in the evening to reassure them that it was “nonsense”. On another occasion, he told Vodafone: “We may have to change our colours.” And he alerted T-Mobile that the German presidency was keen for an “early agreement irrespective of content”.
Mobile-phone companies mounted a tireless lobbying campaign after Vivi-ane Reding, the EU telecommunications commissioner, first suggested forcing down roaming charges last year.
Ewan Sutherland, a leading telecoms policy consultant, said: “I hadn’t fully appreciated that [the Government] had gone over to the Dark Side to that extent. The Government simply did not see it as an issue for the public. They clearly are trying to defend the position of the operators and the revenue of the operators.”
Alyn Smith, a Scottish Nationalist MEP who fought for the price cuts, said: “There was no question that the UK line was favouring the multination-al businesses and not the European consumer.”
Industry experts privately believe that Labour owed the operators a favour. Gordon Brown’s economic success relied heavily on an auction of 3G mobile phone licences in 2000 that raised £22 billion. He used the windfall to reduce debt and help to borrow for public spending while operators have struggled to recoup their investments.
The contrast with the Government’s treatment of consumer organisations is stark. David
Harrington, of the Communications Management Organisation (CMO), representing users, sent the Department of Trade and Industry a document calling for regulation to reduce roaming charges. He received the response: “Thanks; well no one could accuse you of being wishy-washy on this issue!” The official then asked why the CMO had failed to note the risk that cheaper international calls might result in more expensive domestic charges or phones.
Minutes of a meeting last November between Margaret Hodge, when she was the Industry Minister, and Orange state: “MH thought that the industry could have moved faster and earlier but said that she was two thirds on their side!” The minutes appear to come from her office.
Nick White, vice-chairman of the International Telecommunications Users’ Group, derided her stance. “What a lovely political balancing exercise – six months pregnant usually means you produce a baby,” he said. “It is clear from the documents that the frequency and closeness of the dialogue between the mobile operators and the UK Government throughout the whole roaming debate was intense.
“The chatty personal style of the relationship with the operators and the sheer regularity and frequency of it is extraordinary compared with the frequency and formality of the relationship which the Government has with customers.” dkennedy@thetimes.co.uk
**Yep, our own government snuggling up all close and cozy with big business, now one has to wonder if this has anything to do with the selling off of 3G licenses to the mobile companies? I bet many a reporter is now digging though the lists of MP's interests and seeing who has ties with the mobile companies.
Have to remember this one the next time some Labour fuckwit starts banging on about the "evil Tories" backing business over the "working man"....
Tags: New Labour, Sleaze
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