Labour plotted with mobile phone companies to impose high bills for international calling, reports claim.
The Times has uncovered internal memos revealing government cooperation with phone providers to oppose EU legislation imposing price cuts for 'roaming' call charges.
Correspondence uncovered by the newspaper reveals that as negotiations suggested a tough EU line on international call charges, a Labour civil servant emailed Vodafone, saying: "UK still not happy bunnies."
The same documents - revealed under the Freedom of Information Act - show regular email contact between British negotiators and phone companies, with early correspondence with BT stating: "Fight on."
And a further email to Vodafone made reference to a proposed price-cutting initiative by an EU official, commenting: "I assume we want to avoid at all costs!"
The maximum rates finally imposed by the EU were 34p per minutes for international calls and 17p for receiving a call while abroad, a less severe settlement that phone operators had assumed.
Nick White, vice-chairman of the International Telecommunications Users' Group, told the Times the documents were damning, especially in light of the government's relationship with consumer groups.
"It is clear from the documents that the frequency and closeness of the dialogue between the mobile operators and the UK government throughout the whole roaming debate was intense.
"The chatty personal style of the relationship with the operators and the sheer regularity and frequency of it is extraordinary compared with the frequency and formality of the relationship which the government has with customers."