BRUSSELS, Belgium-The European Commission published a consultation paper on “electronic money” for use with mobile phones and whether changes are needed to the E-Money Directive and how it applies to mobile-phone operators. The consultation addresses the issue of applying electronic money to prepaid phone cards.
“Mobile phones are now used to purchase a whole range of products and services going well beyond simple telephone calls,” said Frits Bolkestein, internal market commissioner. “We have to make sure that EU rules are clear, proportionate and are applied consistently throughout the 25 member states .”
The consultation follows a preliminary analysis of the E-Money Directive, which covers any monetary value stored on a chip card or on a computer memory, last year by the commission. According to that analysis, prepaid phone cards are covered by the directive when they are used to purchase products and services other than communications offered by third parties rather than phone companies.
U.K.-based consultancy Ovum said the consequences of the initiative for operators will impact their mobile-data businesses. “So far, operators have demonstrated little interest in developing e-money solutions, but this will have to change,” said Ovum. “Otherwise, the commission may adopt a hard line, which could be very costly for operators.”
