Britain should rethink how wholesale prices for mobile phone calls are determined, the European Commission said today.
EU Information Society and Media Commissioner Viviane Reding said in a statement that wholesale prices, charged by one operator to another, should not be based on past auctions for third-generation (3G) bandwidth.
Ms Reding has written to Ofcom about her concerns.
"I am concerned that Ofcom's approach to calculate 3G spectrum costs could hinder the movement towards lower mobile interconnection prices," Ms Reding said.
"The commission believes that such costs should not be calculated on the basis of prices paid during a spectrum auction, which are in today's context, inflated," she said.
The commission said Ofcom's proposed tariffs kept prices higher than necessary.
Ms Reding has already proposed an EU regulation to cap wholesale and retail prices charged for making mobile phone calls outside a user's home country.