Third-generation (3G) mobile operators face tough scrutiny from the European Commission and won't be allowed to overcharge for services, despite the high prices paid for licences.

Mario Monti, European Competition Commissioner, said in a speech in Barcelona on Thursday: "I can assure you that the mere fact that in some countries third-generation licences were or shall be awarded at astronomic prices will certainly not be an excuse for us for becoming lenient in implementing competition rules."

The warning comes as 3G licence winners in Germany have already started questioning whether 3G will live up to the hype and the high-priced licence, as revealed by vnunet.com sister title Computing.

Bidding in the UK government's spectrum licence auction, held in April, topped £22bn, sparking fears that the cost of building the networks will leave consumers with much higher charges.

Monti added: "We should not consider the huge investments made in acquiring the licences as a justification for excessive consumer prices, unacceptable concentration levels or leniency on state aid."

T-Motion, the mobile services arm of Deutsche Telekom, has said that 3G pricing is likely to be double that of current telephone costs, while earlier this week the Communications Management Association said that 88 per cent of its members believe the full cost of 3G licences will be passed on to the customer through high equipment and service prices.

See also:

Swiss delay 3G auction

Switzerland has postponed its planned auction of four next-generation mobile phone licences after the withdrawal of candidates left only four bidders in the race.  13 Nov 2000

Mobile operators to become banks

Mobile phone operators could emerge as competitors to traditional banks as they begin to offer payment services for small consumer items, according to researcher Gartner.  19 Oct 2000

Users 'will not pay for high 3G costs'

Mobile phone customers will not bear the brunt of the hefty prices paid for next-generation mobile phone licences, leading industry players have claimed.  12 Oct 2000

Radio spectrum auction delayed

The UK government has decided to delay the fixed wireless radio spectrum auction, which was due to begin next Monday, to allow it to review applicants in more detail.  10 Oct 2000

Are 3G licences a waste of money?

Network operators are now admitting that third-generation mobile technology is not going to be all it's cracked up to be - and it will cost.  29 Sep 2000

German 3G auction bids top UK's

Bidding in Germany's third generation mobile licence auction has exceeded the huge prices paid in the UK earlier this year.  16 Aug 2000

3G auction threatens mobile net take-up

The UK government's auction of third generation (3G) mobile licences has sent operators into a frenzy. But critics say the process is out of control and warn that there will be a knock-on effect on mobile service prices.  29 Mar 2000

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