Customers ripped off when texting from abroad

MOBILE phone companies are ripping off customers who send texts from abroad and have failed to reduce their charges despite warnings.

They will be forced to cut charges by up 20 cents per text according to the European Commission, which plans new legislation.

This follows their success in cutting mobile roaming costs last year in Ireland by more than two-thirds and there is a further cut of 3c from September.

The companies were accused of huge profiteering especially from students and young people who are responsible for almost 80% of texts sent from abroad.

Profit margins are close to 70% and texting from abroad can cost 10 times more than sending a text at home, Telecoms commissioner Viviane Reding said.

She wants texts to cost between 11c and 15c compared with the 29c to 35c charged by Irish operators at present.

“Text messages tell a very sad story at present. EU citizens should be free to text across borders without being ripped off. Roaming charges have already drained the wallets of mobile customers too much, especially the 77% of young people who send texts while using their mobile abroad,” said Ms Reding.

Too many people were getting “bill shocks” and she wants more transparency, especially for those who use their mobile to download material from the internet.

“My kids have got some bill shocks which they have shown me. It’s very good to have kids because they know what’s happening in this area. Of course after one such shock bill they do not use their mobiles as much when they are abroad,” she said.

The commission survey also found rip-off charges for browsing the net or downloading music with consumers paying an average of €4.98 to download one megabyte compared with less than €1 when at home. Charges are as high as €11 in some countries with Ireland being lower than most at less than €3.

On average, a consumer pays €15 to download a song when roaming, €10 to download a powerpoint presentation and €1 to €2 to download a single newspaper article.

Chairman of the European Regulators Group, Daniel Pataki, said they would continue to assess prices for roaming data and judge later whether they need to regulate this also.

He welcomed the commission’s decision to take action on reducing the cost of text messages and said national regulators agreed that they are too high.

The necessary legislation should be ready by September. If it is agreed by member states and the European Parliament early next year it could be in force by July 1, 2009.

Since last July, mobile roaming charges are capped at 49 cents per call made and 24 cents per call received before VAT.

Maximum prices will drop this summer to 46c and 22c, and a further three cents next summer. The cost of roaming

* A French customer texting from Italy could pay up to 30c.

* An Irish holiday maker in Italy will pay about 39c.

* An Italian texting home from Ireland pays 29c.

* A Czech tourist in Italy would pay up to 42c.

* In Spain a Swedish holidaymaker could pay up to 40c per message, a German 41c, a Pole 45c and a Briton up to 63c.