29 March 2012

EU To Cap Mobile Roaming Charges Before Summer

The price of mobile phone roaming charges is to be capped by the summer.

The European commission has made the decision in its latest move towards reducing the gap between domestic and foreign call rates. A gap which it hope to reduce to zero by 2015.

The cost of data services on smartphones will be capped at €0.70 a megabyte, far less than most carriers in the EU charge. Prices on voice calls will also be capped, falling from €0.35 to €0.29 in July and €0.19 in 2014. Text message prices will fall from €0.11 to €0.06.

The European commission first tackled what it called the “roaming rip-off” when it imposed a maximum rate on mobile network operators in 2007. Operators were said to be making excessive profits by charging more than triple the normal rate for calls made while in another EU country, and up to five times for calls received.

Today the gap between domestic and "roaming" call charges has fallen by about 75% compared with 2007. Now, after talks between MEPs, EU governments and the commission, a final agreement is expected in May from the European parliament and member countries for further cuts from July.

The news has received a mixed response from mobile networks.

A spokesman for Three said: "This move by EU policymakers is great news for consumers and will help end the gulf that exists between what people pay at home and what they pay when they are abroad in Europe."

However the UK owners of Orange and T-Mobile, Everything Everywhere, said: "We are disappointed … as we feel competition, not the continued use of price caps, is the most effective way to bring down, and keep down, international roaming pricing. Data roaming prices have dropped by 78% over the last three years, and this was achieved without a regulatory framework in place.

(H)