EU: U.K. should rethink phone plan

The EU's telecom commissioner Viviane Reding sent a "letter of comment" to the U.K. telecom regulator, Ofcom, arguing that the U.K.'s new tariff rules for interconnect fees between operators are too high and could slow the transition to cheaper phone calls. Ofcom says the high tariffs factor in the high prices paid during the 2000 3G spectrum auction. Reding said "costs should not be calculated on the basis of prices paid during a spectrum auction, which are in today's context, inflated." Ofcom aims to reduce interconnect fees over the next three years, but the regulatory body must consider Reding's letter under the terms of the European Commission. The letter does not indicate that further action from the EC is imminent.

For more on Reding's thoughts on the U.K. telecom regulations:
- see this WSJ article (sub. req.)

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