SimplySwitch.com: News that mobile roaming fees to be cut

Using a mobile phone abroad is to become cheaper across the EU after MEPs today backed plans to place caps on roaming charges.

The price caps should take effect over three months from July 2007, meaning they will not come into full effect in time for the peak holiday season.

From July, networks have one month to offer the price cap to customers, a month to apply the new rate once the customer responds then a further month to automatically activate capped rates for customers who have still not responded.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments: "When these plans were first announced, we were concerned that this legislation could drag on for years. However, unless there are further setbacks, it appears that the European Parliament has moved impressively quickly and come to the aid of the consumer. Even though the biggest reductions won't be seen for three years, and caps won't take full effect until many people have taken their summer holiday, this is great news for mobile users.

"Roaming charges have been far too high for far too long and something had to be done. Customers have been suffering at the hands of operators who've been making up to £5.7bn a year through extortionate fees for overseas calls. This latest act shows that MEPs have both the teeth and the will to act on consumers' behalf, despite a great deal pressure from heavyweight telecoms firms.

"Recent research by SimplySwitch revealed that 77% of UK mobile users have no idea how much they pay for making or receiving calls on holiday. The introduction of the 'Eurotariff' should help in this respect. However, even if mobile users still remain unclear on pricing, the new caps mean that they won't get such a nasty shock when they open their holiday phone bill.

"While we support any action that leads to a better deal for the customer, we should brace ourselves for the fact that mobile operators will try to claw back some of their lost earnings through other means. Also, while this EU ruling is a great step in the right direction, we would like to see the mobile industry come to a global agreement on roaming charges. At a time when travel is becoming ever more popular, mobile operators should be making it easier and cheaper for customers to use their phone at 'any time, any place'."

Karen Darby has the following advice for holidaymakers: "Anyone jetting off on holiday before the price caps come into effect should do their research before they go. If they are likely to use their mobile while overseas, most major networks offer 'bolt on' deals that can reduce call prices by up to 80%. These usually cost between £2 and £3 per month, and customers are free to sign up for just the month that they're on holiday."