Roaming charges to be cut by up to 75%

HOLIDAYMAKERS could see their mobile phone roaming costs slashed by up to 75% following a breakthrough in EU negotiations yesterday.

Irish travellers are paying some of the highest prices for making and receiving calls on their mobiles when they are holidaying or on business abroad.

For months the EU has been trying to negotiate a new package that would see a cap on calls made between people in the 27 EU countries.

But objections by phone companies, backed by a number of countries including Britain, France, Sweden and Spain, threatened to scupper chances of a reduction in time for this year’s holiday season.

Intense negotiations between the member states and the European Parliament produced a compromise yesterday that the German presidency believes will be supported by enough countries when they meet today in Brussels.

The deal means the maximum mobile phone operators can charge customers for making calls while abroad is 49 cents a minute while the maximum for receiving calls when abroad will be 24c a minute.

The charges for making calls will drop by a further 3c a minute for each of the next two years, capping it at 43c a minute by summer 2009. The cap on incoming calls will decrease by 2c next year and 3c the following year, bringing it to 19c per minute.

Irish consumers are paying up to €2.42 a minute to phone home when abroad on holiday and up to €1.75 a minute when abroad for receiving a call from home.

The wholesale price big operators can charge the smaller service providers will also be capped at 30c a minute, dropping by 2c over the next two years, which is designed to improve competition, but it will not take effect for two months.

One of the stumbling blocks was whether the companies had to automatically put customers on the new euro tariff or wait for them to ask for it.

The compromise means consumers can switch to the new tariff free of charge one month after the regulation comes into force, expected to be in June.

After three months, all customers will automatically avail of the new prices unless they are benefiting from specific roaming packages.

Companies will also be obliged to provide their customers with personalised pricing information on charges for outgoing and incoming roaming calls.

The effect of the cap will be reviewed by the European Commission that originally proposed the changes within 18 months to measure its effect and may conclude that the legislation be phased out if they see evidence of proper competition between the phone companies.

If it is finally agreed next month it will be the fastest piece of legislation ever to get through the EU.