Setback for EU cap on mobile roaming fees

Arguments have stalled a European Parliament vote on price caps for mobile roaming charges. After two days of negotiations, disagreement remains over the levels of the price caps as well as whether customers should automatically receive the new rates or have to actively sign up to them.

With the parliament vote postponed, time is running out for the law to come into effect before the main holiday season begins. Any further delay to the process could mean that EU institutions close down for the summer before the law is formally agreed.

The original proposal planned to reduce roaming charges to €0.40 a minute for outgoing calls and €0.15 for incoming calls. Current prices in some places are as high as €12 per minute.

Karen Darby, founder of price comparison service SimplySwitch.com, comments: “When these plans were announced in December, we were concerned that this legislation could drag on for years. With this latest setback, it appears that this may well be the case. In the unlikely event that the new law comes into effect by July, mobile networks may well drag their feet in implementing the changes. Whatever happens, consumer are likely to suffer rip-off roaming charges for at least one summer more.”

Research by SimplySwitch.com revealed that 77% of UK mobile users don’t know how much they pay for making or receiving calls on holiday. With a four-minute call often exceeding £8, customers are suffering at the hands of operators who make up to £5.7bn a year through roaming charges.

Darby says: "Until price caps are put firmly in place, we would always encourage customers jetting off on holiday to do their research before they go. Most major networks offer ‘bolt on’ deals that can reduce the price of overseas calls by up to 80%. These usually cost between £2 and £3 per month, and customers are free to sign up just for the month that they’re on holiday. Until the EU shows that it has the teeth to act on the consumer’s behalf, these represent the best option for UK holidaymakers wishing to phone home.”