Spain Government Aims To Boost Mobile Telephony Competition

SANTANDER, Spain -(Dow Jones)- Spanish Industry Minister Jose Montilla said Monday his government is studying a series of measures to boost competition and lower the prices of mobile telephony services in Spain, which consumer associations complain are among the highest in Europe.

"The prices of mobile telephony must continue to decrease," said Montilla, speaking at a telecommunications industry conference in Santander.

Montilla said the government is currently studying measures to protect consumers against price rounding, a practice whereby operators charge consumers for calls in 30-second blocks after the first minute of talk time.

"This practice doesn't seem sufficiently transparent," Montilla said.

To ratchet up the competition in the sector, the minister said his government is evaluating a report prepared by the country's telecoms regulator about the possibility of authorizing virtual mobile telephone operators, or service providers that would rent capacity from other operators.

In addition, the government wants Xfera, the only holder of a Spanish license for third-generation mobile telephony not currently offering services, to be operational by next spring.

"Any operator whose network is not operational could lose its license, as is happening in other countries," said Montilla.

Company Web site: http://www.telefonicamoviles.com

-By Jonathan House, Dow Jones Newswires; 34 913958120; jonathan.house@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 5th September 2005