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EU debates new mobile price caps EU debates new mobile price caps
(30 minutes later)
New price caps for mobile phone use abroad are expected to be adopted by the European Parliament.New price caps for mobile phone use abroad are expected to be adopted by the European Parliament.
For the first time text messages and data roaming services, such as checking e-mails while abroad, will be included in EU-wide price caps.For the first time text messages and data roaming services, such as checking e-mails while abroad, will be included in EU-wide price caps.
The regulation has been approved by EU telecoms ministers and is expected to be passed when MEPs vote on Wednesday.The regulation has been approved by EU telecoms ministers and is expected to be passed when MEPs vote on Wednesday.
The cap for a "roaming" text will fall to 11 euro cents (10p; 14 US cents), from about 29 cents on average today.The cap for a "roaming" text will fall to 11 euro cents (10p; 14 US cents), from about 29 cents on average today.
The legislation is aimed at preventing "bill shock" - the nasty surprise many holidaymakers get when they return home and see how much they were charged for using their mobile phone abroad.The legislation is aimed at preventing "bill shock" - the nasty surprise many holidaymakers get when they return home and see how much they were charged for using their mobile phone abroad.
The BBC's Dominic Hughes in Strasbourg says one customer was hit with a bill of more than 39,000 euros (£34,000; $50,000) for downloading a single episode of a television show.
The new charges - excluding VAT - will take effect on 1 July, if MEPs back the regulation.The new charges - excluding VAT - will take effect on 1 July, if MEPs back the regulation.
The cost of voice calls is also expected to fall again. The current price cap of 46 euro cents per minute for outgoing calls will fall to 43 cents in July and then 35 cents by July 2011.The cost of voice calls is also expected to fall again. The current price cap of 46 euro cents per minute for outgoing calls will fall to 43 cents in July and then 35 cents by July 2011.
The cap on calls received abroad will fall from 22 cents today to 19 cents in July and 11 cents by July 2011.The cap on calls received abroad will fall from 22 cents today to 19 cents in July and 11 cents by July 2011.
No price-fixingNo price-fixing
In the first phase of the EU's mobile roaming legislation, the cost of voice calls was cut from 1 July 2007. The average cost of a roaming call before then was 1.15 euros per minute.In the first phase of the EU's mobile roaming legislation, the cost of voice calls was cut from 1 July 2007. The average cost of a roaming call before then was 1.15 euros per minute.
At the time phone companies were warned that legislation on texting and downloading data would follow unless they lowered costs voluntarily.
The idea is not to fix an EU-wide price, but to set a cap below which telecoms firms can compete by offering lower prices while still earning a reasonable return.The idea is not to fix an EU-wide price, but to set a cap below which telecoms firms can compete by offering lower prices while still earning a reasonable return.
The cost of data roaming services is also set to come down. These include downloading and sending e-mails abroad from mobile phones.The cost of data roaming services is also set to come down. These include downloading and sending e-mails abroad from mobile phones.
The maximum from 1 July is set at 1 euro per megabyte, compared with an average of 1.68 euros today. It will fall to 50 euro cents by July 2011.The maximum from 1 July is set at 1 euro per megabyte, compared with an average of 1.68 euros today. It will fall to 50 euro cents by July 2011.
The price caps are for the rates that the foreign "host" operator charges the customer's home operator.The price caps are for the rates that the foreign "host" operator charges the customer's home operator.
The initial proposals to cap data roaming charges were made by EU Telecommunications Commissioner Viviane Reding.The initial proposals to cap data roaming charges were made by EU Telecommunications Commissioner Viviane Reding.
Last November the package of measures won the backing of EU telecoms ministers.Last November the package of measures won the backing of EU telecoms ministers.
According to Commissioner Reding, traffic jumped 30-35% on voice calls after the EU cut the roaming charges by 50-60%.According to Commissioner Reding, traffic jumped 30-35% on voice calls after the EU cut the roaming charges by 50-60%.