Mobistar Sees EU Roaming Rules Hitting Sales By Up To 4%

BRUSSELS -(Dow Jones)- Mobistar, Belgium's second-biggest mobile player by market share, said Tuesday that proposed European Union rules slashing roaming fees could slice up to 4% off its total revenue.

"The rules, as they are currently drafted, could lower total revenue by 2% to 4%," Mobistar Chief Executive Bernard Moscheni told reporters after the company posted better-than-expected first-half 2006 results earlier Tuesday.

He gave no estimate as to the possible effect on profits. The proposed rules may force mobile operators to cut their roaming charges by up to 70%.

Moscheni said Mobistar currently gets about 17.5% of its total revenue from roaming charges, which mobile operators apply to customers when they use their phone outside their home country.

In advance of the EU proposal, several mobile phone operators, including Mobistar, have announced plans to slash roaming fees. In early June, Mobistar said that from June 15 it would cut its roaming fees by up to 28%.

Mobistar, majority-owned by France Telecom, reported an EUR147.8 million, or 9.2%, rise in first-half 2006 net profit on a 7.7% increase in total revenue, which came in at EUR772 million. Moscheni said he was unaware of any plans by France Telecom to buy out the minority stake floated on Euronext.

-By Spencer Swartz, Dow Jones Newswires; +32 2 741 14 80; spencer.swartz@dowjones.

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Posted to the site on 25th July 2006