Mobile phone giant Vodafone bowed to European Union pressure on Monday, saying it would cut the cost of using other firms' networks when abroad by at least 40 percent.
Vodafone said the average cost of "network roaming" in Europe would fall from over 0.90 euros to less than 0.55 per minute. The British-based firm said it would also enter into reciprocal wholesale arrangements with other European mobile operators, with voice calls within the EU from October 2006 no more than 0.45 euros per minute.
Vodafone's move pre-empts a possible imposed cut in the charges, which Europe's decision makers have labelled "excessive". "The European Commission and European Parliament have made it clear that they expect to see change," Chief Executive Arun Sarin said in a statement. "By addressing both retail and wholesale prices, we are providing a platform for sustainable, lower retail prices across Europe in the future ... We believe the market is the best way to meet customer needs, not regulation," he added.