EU roaming charges to fall

 

 

By James Hall, Consumer Affairs Editor

 

 

 

 

The move, which confirmed plans laid out earlier this year, will stop consumers being hit by surprise “bill shock” when they return from trips overseas.

 

The caps, which will come into force on July 1, will mean that people who travel to Europe with smartphones will have cheaper access to emails, interactive maps and social networking sites such as Twitter and Facebook.

 

The EU said that the caps will save the typical family taking a holiday in Europe “at least” €200 (£160).

 

A typical businessman traveling in the EU will save around €1,000 (£800) a year, the EU said.

 

There are already price caps in place in Europe for mobile phone calls and text messages.

 

 

In total, Europeans will spend around €5 billion this year on roaming services, a saving of around €15 billion compared to what the same services would have cost under 2007 prices, the EU said.

 

From July, phone companies will only be allowed to charge 70 cents (56 pence) per megabyte of data, plus VAT. As recently as 2009 the price was six times as much.

 

By 2014, the maximum cost of downloading data will be cut further to 20 cents per megabyte.

 

Neelie Kroes, Vice-President at the European Commission, said that by putting price caps on data, the EC had “created a roaming market for the smartphone generation”.

 

“More than that, we have ended to rip-offs familiar to anyone who has used a mobile phone while traveling abroad,” said Mr Kroes.

 

He said that from 2014 consumers will be able to choose a “separate roaming provider” when they travel.

 

“If you can find a better offer compared to your standard contract you’ll be able to do it in a few simple swipes, just like when you choose a wi-fi network,” he said.

 

Monique Goyens, director general of The European Consumer Organisation, said: “This welcome news is the latest step down from sky high roaming costs. As of July 1, the EU is once again bringing down the cost of calls and texts when abroad.”

 

However Ms Goyens added: “The issue of transparency remains a concern. A recent EU-wide survey found 74 per cent of consumers are hesitant to use their phone abroad to call, check mail, download photos or use voice services for fear of cost. This latest battle for fairer pricing can only help reduce that number.”

 

The EU also announced new price caps for mobile calls and texts, which will also come into effect on July 1.

 

From July calls will cost a maximum of 29 cents a minute to make and 8 cents a minute to receive, plus VAT. Texts will dost 9 cents each to send. They will fall again in 2013 and 2014.

 

Currently calls cost 35 cents a minute to make and 11 cents a minute to receive. Texts also cost 11 cents.

 

The EU said that the prices are a maximum and that competition between operators could drive them even lower.