EU warned over mobile TV development

Industry concerned about plan for price caps

BRUSSELS -- Europe's mobile phone industry on Wednesday warned that EU threats to slap price caps on cell phone movies and downloads would hinder the development of mobile TV.

EU Telecoms Commissioner Viviane Reding said operators are making excessive profits on downloads, and she may force them to lower charges.

But the GSM Assn. said industry returns on capital employed were only 7% in 2007 -- giving lie to claims of excessive profits -- and price caps would hamper the heavy capital investment needed for advanced 3G networks offering multimedia services at broadband speeds.