EU panel backs phone roaming-charge cap

A key European Parliament committee has voted in favour of a proposal to cap mobile phone roaming charges.

The move paves the way for the entire EU assembly later this week to approve a measure that would cut costs for travellers using their phones abroad.

EU ministers are then expected to back the price caps at a June 7/8 meeting, meaning cheaper roaming rates could be in place for at least part of this summer holiday season.

The EU legislature’s industry committee supported a deal reached last week by negotiators for the EU parliament and member states that sets the retail roaming cap at 49 cents per minute for making a call when abroad and 24 cents per minute for receiving one, plus VAT. The 785-seat parliament will vote on the regulation tomorrow.

Under the deal, network providers would have one month from the time the new rates officially begin to offer customers a new pricing plan. When the new rates begin depends on how fast the new regulation will be translated into all official EU languages.

Mobile phone users would have two months to choose whether they want to go with the capped roaming charges or stick with their existing service contracts. This means that if there are no glitches, European holidaymakers would theoretically be able to enjoy the capped rates by mid-July.

The price ceilings would drop further, to 43 cents for making calls abroad and 19 cents for receiving them, by 2009, the negotiators agreed. The regulation will be then be reviewed.

The European Commission, the bloc’s executive arm, claims network providers are reaping massive profits from high roaming charges that can increase call costs fourfold. The cap – opposed by the telecommunications industry – aims to slash roaming fees by as much as 70%.

Currently, a Maltese calling home from Latvia can end up paying as much as €11.21 for a four-minute conversation.

The telecoms industry has warned that mobile phone users in Europe could face higher domestic charges if the EU forces telecom companies to limit the costs of international calls.

Some 150 million mobile phone customers in the EU use roaming to make calls outside their home nation every year.

The roaming caps represent one of the most significant pieces of EU regulation in recent years.

Mobile operators draw between 10-18% of their revenues from international roaming charges, according to a 2006 study by research firm Evalueserve.