When an obscure Eurocrat pledged to slash the outlandish costs of mobile phone calls abroad, British holiday-makers and business people might have expected ministers to be pleased.

Millions of Britons every autumn face the misery each autumn of exorbitant bills for holiday calls made to friends and family back home.

Competition was clearly failing to cut bills fast enough. So the European Commission decided to get tough, forcing price cuts by decree and seeking to do so by this summer.

Labour decided that this was the moment to fight Europe on the beaches. The Times can detail how the Department for Trade and Industry, led by Alistair Darling, now Chancellor, let itself become a branch of the mobile lobbying industry. Under the Freedom of Information Act, the DTI (now the Department for Business) has released emails and minutes of contacts between officials and phone giants.

A tale emerges of the Government and some mobile companies making common cause to resist and water down regulations.

The gratitude of phone chiefs is evident from a round of get-togethers with Margaret Hodge, then Industry Minister, now a Culture Minister. The Government has censored the documents to hide the identity of individuals from mobile businesses. On November 16, 2006, T-Mobile “thanked MH for the Government’s help and support on European regulations, particularly mobile roaming”, minutes state. Mrs Hodge met Orange on November 29. “Orange is pleased with the work DTI is doing on roaming but adamant that regulation in this area was not necessary,” minutes say. Mrs Hodge’s position was that competition would drive down prices.

A rash of emails is disclosed through the Freedom of Information Act involving the DTI official Nigel Hickson, Britain’s negotiator on a European working party on roaming. By early this year he was closely liaising with some phone companies.

BT wrote an email headed “RE: Roaming” on January 30: “Hi Nigel, Not sure if you’ve seen this . . . report yet. It is highly critical of the . . . proposals.” Mr Hickson replies: “Yes; saw it; good stuff! PS Fight goes on . . . ”

Mr Hickson contacted Vodafone on February 5, asking for the company’s advice on Britain’s stance. “Hi. While I remember; at WG [working group] last week Rodford [Peter Rodford, senior Commission official] hinted [on a new proposal]. I assume we want to avoid at all costs!”

An indiscreet exchange took place when T-Mobile sent Mr Hickson a copy of an article from The Independent on March 9. The headline stated: “Mobile phone firms hope for easier ride on roaming charges from EU”. The report said that the latest round of lobbying by T-Mobile and rivals left them confident that regulations would be less onerous. Viviane Reding, the telecoms commissioner, was quoted saying: “I call upon national ministers, and in particular the British Government, to listen less to the lobbyists of mobile phone operators and more to the interests of consumers.” Mr Hickson wrote to T-Mobile: “Good one!”

A compromise was finally thrashed out by Europe on May 15, setting the maximum rate per minute paid at 49 cents (34p) for dialling and 24 cents (17p) for receiving a call. Previous proposals were 27p and 10p respectively.

An amazing running commentary takes place. At 12.52, Vodafone emailed Mr Hickson under the subject: “Hearing a deal has been done . . . 49/24 cents on eurotariff – see Reuters”. Vodafone wrote againaAt 12.58 it wrote: “Any confirmation your end . . . jeez my nails . . . none left!!!!” Mr Hickson repliedthe same minute: “No, you are first!!! (as always)” Then, at 13.51, Mr Hickson appeared to confirm the deal. He sent Vodafone the three-word message: “Get that ice!”

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