uSwitch.com: True extent of mobile roaming charges

Ahead of today’s European Parliament vote on the European Commission’s proposal to cap mobile roaming charges, research from price comparison and switching service uSwitch.com reveals the true attitudes Brits abroad have on packing their mobile phones.

The findings show that holidaymakers are adding a whopping £230 million to their monthly bills; partly because over 1 in 4 wrongly assume that it is free for them to make and receive calls while out of the country.

Chris Frost, Mobiles expert at leading independent price comparison and switching service uSwitch.com comments: “Mobile companies have been able to get away with charging sky high prices for using mobiles abroad for too long now, so it is about time that action was taken. Mobiles are a necessity today so why should holidaymakers have to pay over the odds to use theirs abroad?”

Although roaming is a European-wide issue, according to the European Commission it’s the British who have been paying the biggest price for using their mobiles abroad – in some cases up to 50% more than in other countries. Under the terms of this proposed agreement, roaming fees could be slashed by up to 70% - welcome news to the 18 million adult holidaymakers the poll reveals will take their phone with them when they head abroad this summer. Despite so many packing their phones, the cost of calls while abroad is in the back of peoples minds as 16% (2,903,755) of people say they keep their phone switched off as a way of saving money, turning it on only in emergencies. This comes as no surprise when 17% (3,085,240) of consumers see their bills rise by more than £20 when they use their phone abroad.

Frost continues, “Preparation is the key to saving money on your mobile whilst on holiday. Many people do not even think about how they will use their mobile and only discover the real cost when they arrive home to a huge bill. 90% of holidaymakers let their phone automatically select a network while away. The phone will often change networks during a holiday as network reception changes. However, with the variation in call charges between the local operators, everyone should research which network is cheapest and manually search for it on their phone, throughout their visit abroad.”

Changes to Roaming Charges so far…

The roaming calls business is estimated to be worth around £5.7 billion in revenue each year to European operators. This may explain why providers have kept charges so high for so long. However in anticipation of the roaming charges cuts, the largest operators in Europe have already announced reductions in their charges.

O2 – For £5 per month you can sign up to ‘Chosen Country’ which allows you to receive calls whilst abroad for free, and charges to call the UK are a flat rate of 25p per minute. This was initially launched for customers visiting Spain, but O2 are planning to add further countries.

Vodafone – Introduced Vodafone ‘Passport’ which allows you to use the inclusive minutes that you get with your monthly plan. For a flat connection charge of 75p per call you can use any inclusive minutes that you have with your call plan. Calls can also be received for a flat charge of up to 75p per call for the first 60 minutes, and a 20p charge applies after the first 60 minutes.

3 – Now include ‘3 Like Home’ for customers to make discounted calls back to the UK from 3 partner networks in countries including Austria, Australia, Denmark, Italy, Ireland, Hong Kong and Sweden. When visiting these countries, calls back to the UK
outside of your monthly inclusive minutes cost 20p per minute and are free to receive.

T-Mobile – Have now started selling voice and text bundles to customers, with prices starting at £15 customers can get 30 minutes and upwards worth of calls made and received within a period of 42 days. Customers can use these bundles in a range of countries including USA, Italy, France, Ireland, and Canada.

Orange – Also allow you to buy bundles of minutes that can be used in countries abroad, from £15 a month customers can get 25 minutes and upwards to make and receive calls whilst abroad in most major European countries.

Frost continues, “Although it is great that action is being taken to decrease roaming charges, consumers should not solely rely on regulators to reduce their bills. A little research before they leave for their trip can save them a lot of money in the long run.”

Mobile Money Saving tips from uSwitch.com:

Some networks are cheaper than others and your phone may not always automatically select the cheapest. Do your research beforehand, check with your network operator on the cheapest network for the country you are in, and select this manually when you arrive and keep checking.

Check with your network whether they offer any special products such as bolt-on’s or flat fees for using your mobile abroad. For example Vodafone’s Passport or O2’s My Europe tariff provide cheaper calls for either an initial connection charge or an additional monthly fee.

If you’re away for a long period, investigate buying a local SIM card. This will let you receive texts and calls without being charged and calls can be made on a pay-as-you-go basis.

Find an internet café or consider taking your laptop with you to use Skype or Voice over IP service to make free calls over the internet.

Buy a calling card and use a local payphone to make calls.