EU mobile phone roaming charges cut further

MORE cuts in mobile phone roaming charges apply today — with the European Commission intent on closing the gap between domestic and foreign call rates to “almost zero” by 2015.

Consumers opting for the EU-regulated Eurotariff will pay 35c per minute (excluding VAT) for making calls, while the cost of calls received falls from 15c to 11c per minute.

Existing rules to prevent bill shocks for using the internet via mobile while abroad remain: operators must apply an automatic €50 cut-off limit on accounts unless the customer explicitly agrees otherwise.

Compulsory maximum roaming rates were first imposed on mobile network operators four years ago to tackle what the Commission called the “roaming rip-off” — mobile network operators were said to be making profits of more than 200% for mobile calls made while in another European Union country, and 300% or 400% for calls received.

A legal claim by the networks that the Commission was exceeding its powers failed last year and rates fell further.

Action by Brussels against high roaming charges has been one of the most popular consumer-driven moves by the EU – an average 60% has been cut in the maximum charges operators could levy on mobile users making or receiving calls while in another EU country since 2007.

Today’s additional price drop means mobile roaming charges are about 75% cheaper on average than they were six years ago when the Commission first urged operators to cut their rates voluntarily.

The voluntary code failed and the temporary roaming rules introduced by the Commission to impose cuts expire next summer.

Digital Agenda Commissioner Neelie Kroes admitted that despite the cuts, the problem of a lack of open competition in the market remained, with operators generally charging at the top of the price cap.

She said: “These latest price caps will temporarily reduce retail prices for making and receiving voice calls when in another EU country during the coming year.

“But we have to tackle roaming problems at the root with a long-lasting structural approach.”

Ms Kroes said the Commission will soon present “comprehensive new proposals for long-term solutions to address” the lack of competition.

The aim remains is to reduce the difference between mobile phone charges at home and while abroad to “almost zero” by 2015.