Mobile roaming fees will be cut

Using a mobile phone abroad will become cheaper across the EU after the Telecoms Council today approved plans to cap roaming charges.

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

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments: “With today’s ‘rubber-stamping’ of the roaming charges proposal, the EU has shown it can act positively on the consumer’s behalf. Despite a great deal of pressure from telecoms firms, price caps have been agreed that will put an end to extortionately high overseas call prices.

“There are a few drawbacks. The caps only apply within the EU, the biggest reductions won’t be seen for three years and the price restrictions won’t take effect until many people have been on their summer break. However, it’s very encouraging to see the European Parliament take action so swiftly without entangling itself in red tape.”

Karen Darby continues: “Roaming charges have far too high for far too long so it’s important that this action was taken. Research by SimplySwitch.com revealed that over three quarters of mobile users currently have no idea how much they’re charged for calls on holiday1. The ‘Eurotariff’ will be great in this respect and should prevent people getting such a nasty shock when they open their holiday phone bill.

“While we support any action that leads to cheaper calls for the customer, we should bear in mind that mobile operators will attempt to claw back lost earnings through other means. Networks will be hoping that the lower roaming charges encourage more customers to use their mobiles overseas, thus offsetting their drop in earnings. This could well prove to be the case. Should networks choose to increase UK call packages or call charges, such hikes would prove extremely unpopular.”

Karen Darby has the following advice for holidaymakers: "Anyone going on holiday before the price caps come into effect should examine their options before they go. Whether they’re holidaying in Europe or not, most major networks offer ‘bolt on’ deals that can reduce call prices by up to 80%. These usually cost around £2.50 per month, and customers are able to sign up for just the month that they’re on holiday.”