Emergency call put in to Neelie Kroes A busy summer looms for Neelie Kroes, the European telecoms regulator who is trying to save an industry "near collapse" with plans for a "real telecoms single market." Not least because that industry has, over the past six months, gone from lavishing unanimous praise on Ms Kroes and her plans, to widespread criticism. "In one move, the regulator will wipe off the annual expenditure we make on regional infrastructure," says one European telecoms executive. It will be taken out of future investment. The move in question is the elimination of roaming fees across the EU, a central plank in the draft legislation that Ms Kroes has prepared that would enable a single European telecoms market, a copy of which was obtained by the FT. Telecoms executives argue that not only will the new rules take away roaming fees as a key source of revenue for their companies, the low wholesale roaming rates - what a telecoms operator would have to pay a rival when its customer uses the rival's network - would also create arbitrage opportunities that would destroy their domestic businesses. "We would cross a Rubicon with this set of proposals," says one executive, who wished to remain anonymous. The damage was before confined to just roaming, which was bad, but not as bad as what it could do to our domestic revenues. So-called mobile virtual network operators (MVNOs) - which do not own network infrastructure but instead use other operators" to launch their branded services - could use the low wholesale tariffs to undercut domestic telecoms groups. Tesco Mobile in the UK, and Lebara, are both examples of MVNOs. In a note last week, Robin Bienenstock, analyst at Bernstein, warned that the EU's draft regulation implies a considerable weakening of European wireless revenues over the next several years, "not just from roaming but also potentially from the creation of more profitable MVNOs." Lower roaming fees are good for consumers - an important element in the debate in an election year in Brussels - but the industry warns that forcing down overall revenues would damage the industry's ability to invest networks at a time when money is needed to upgrade to 4G superfast mobile. Chief executives from some of the biggest telecoms groups in Europe will meet Ms Kroes today to give their views with Etno, the trade body for the incumbent operators. There is little chance of altering the overall move to close down roaming charges but Brussels insiders indicate that there is the willingness to engage with the industry on its concerns. Drafts are often changed a number of times before becoming law. Our aim is to end roaming without making arbitrage a sustainable business model or undermining investment. We recognise straight up that arbitrage would have disruptive effects on the industry without serving consumers" interests," Ms Kroes" spokesman says. Still, the dispute over roaming fees highlight how Ms Kroes" attempt to end her tenure as the EU digital commissioner with a sweeping, lasting reform is proving increasingly difficult. Industry executives had applauded her earlier moves to relax the pricing of fixed-line access to help cover the costs of installing next-generation fibre networks. Her plan for a single telecoms market, first revealed by FT at the beginning of last year, was also initially welcomed. The industry hoped it would make it easier to operate across markets, and some even took it to mean easing competition regulations that have slowed consolidation. Since then, investors have renewed their interest in telecoms shares, a trend that analysts in part attributed to hopes for a more benign regulatory regime. But the relationship between Ms Kroes and the industry has soured sharply since the draft legislation was leaked. One telecoms executive, who wished not be named, accused the commission of going back on its earlier promises. "There are no measures in favour of investments and of the growth of the sector," he says. Meanwhile, EU officials privately complain that telecoms groups are trying to shift blame for their poor operational performances to the regulators. "They are literally complaining about peanuts and trying to use EU regulation as padding for their own management challenges," says one official. Brussels argues that although the plan might negatively impact large mobile operators, its proposal offers more opportunities for non-telecoms players willing to exploit a pan-European digital market. EU officials also point out that more people will use roaming when abroad, although it is not known to what extent the increase in volume of calls will offset the decline in prices. There are several stages of grief - from denial to anger to bargaining to acceptance. That applies equally to a person facing a divorce or a company facing the loss of a cash cow," Ms Kroes told the FT. What will improve investment are measures to improve wholesale price stability and regulatory certainty and measures to remove single market barriers. One EU official added: "One of the things that is very hard for us to illustrate is that this package will be helpful for thousands of companies that don't exist yet - even will help them come into existence." Besides the contentious move to eliminate roaming, Ms Kroes" legislation also contains sweeping reforms ranging from improving spectrum availability to the creation of a so-called "EU passport" to conduct business across the region. "The proposals are a mix of sweet and sour for the industry, but just how much of each will be worked out between now and when the proposal are finally enacted," says Stephen Howard, analyst at HSBC. The roaming proposal is not good for the industry but other elements such as spectrum harmonisation will be very beneficial.