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EU forces big mobile price cuts EU forces big mobile price cuts
(19 minutes later)
Euro MPs have voted overwhelmingly to cut the cost of texting and using the internet on mobiles abroad.Euro MPs have voted overwhelmingly to cut the cost of texting and using the internet on mobiles abroad.
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 EU-wide caps, excluding VAT, will take effect in July. They cover text messages and data roaming services, such as checking e-mails while abroad.The EU-wide caps, excluding VAT, will take effect in July. They cover text messages and data roaming services, such as checking e-mails while abroad.
The current price cap of 46 euro cents per minute for an outgoing voice call will also fall to 43 cents in July.The current price cap of 46 euro cents per minute for an outgoing voice call will also fall to 43 cents in July.
The legislation was passed by 646 votes in favour and 22 against. It has already been approved by EU telecoms ministers.The legislation was passed by 646 votes in favour and 22 against. It has already been approved by EU telecoms ministers.
It 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.It 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 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 cap on voice calls received abroad will fall from 22 cents today to 19 cents in July and 11 cents by July 2011.The cap on voice 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.
NEW CAPS FOR ROAMING Text message - 11 euro cents (10p; 14 US cents)Data downloads - 1 euro per megabyteVoice calls - 43 cents per minute (outgoing); 19 cents (receiving) Note - price caps do not include VAT
At the time phone companies were warned that legislation on texting and downloading data would follow unless they lowered costs voluntarily.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 coming down. These include downloading and sending e-mails abroad from mobile phones.The cost of data roaming services is also coming 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%.