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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-fixing | No 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%. |