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EU caps roaming mobile phone fees EU caps roaming mobile phone fees
(10 minutes later)
The cost of making mobile phone calls in Europe is set to fall substantially after lawmakers backed plans to cap so-called "roaming" charges.The cost of making mobile phone calls in Europe is set to fall substantially after lawmakers backed plans to cap so-called "roaming" charges.
The amount mobile customers are charged by local phone operators for using their handsets while abroad should now fall by as much as 75%.The amount mobile customers are charged by local phone operators for using their handsets while abroad should now fall by as much as 75%.
More than 150 million people across Europe will be affected by the changes in the pricing regime.More than 150 million people across Europe will be affected by the changes in the pricing regime.
But the new charges are not likely to come into effect until later this year.But the new charges are not likely to come into effect until later this year.
Full information Price cuts
The changes still need to be approved by the European Commission and member governments of the 27-nation bloc, although these approvals are considered a formality.The changes still need to be approved by the European Commission and member governments of the 27-nation bloc, although these approvals are considered a formality.
A European Commission spokesman described the vote as "wonderful", saying many people would now feel able to use their phones abroad for the first time.A European Commission spokesman described the vote as "wonderful", saying many people would now feel able to use their phones abroad for the first time.
But consumers will not feel the benefits of lower prices until late July or early August at the earliest, too late for many people travelling in Europe this summer.But consumers will not feel the benefits of lower prices until late July or early August at the earliest, too late for many people travelling in Europe this summer.
Text messaging will not be covered by the proposals.Text messaging will not be covered by the proposals.
Mobile phone users should feel the benefits of the single market and not be penalised simply the crossing a border Fiona Hall, Liberal Democrat MEP Case study: EU roaming law Send us your comments Q&A: What this means for youMobile phone users should feel the benefits of the single market and not be penalised simply the crossing a border Fiona Hall, Liberal Democrat MEP Case study: EU roaming law Send us your comments Q&A: What this means for you
Brussels has sought for some time to regulate the cost of making mobile phone calls when abroad, after finding huge differences in what people have to pay in different countries of the EU.Brussels has sought for some time to regulate the cost of making mobile phone calls when abroad, after finding huge differences in what people have to pay in different countries of the EU.
Under the plans, the cost of making a mobile call anywhere in the EU would be capped at 49 euro cents (33p) a minute in year one, while receiving a call would cost 24 cents (16p) at most.Under the plans, the cost of making a mobile call anywhere in the EU would be capped at 49 euro cents (33p) a minute in year one, while receiving a call would cost 24 cents (16p) at most.
These costs should now fall to 46 euro cents (31p) and 22 cents (14.9p) respectively in year two, and 43 cents and 19 cents in year three.These costs should now fall to 46 euro cents (31p) and 22 cents (14.9p) respectively in year two, and 43 cents and 19 cents in year three.
British mobile users currently have to pay up to 5.92 euros (£4.03) for a four-minute call made while in Spain.British mobile users currently have to pay up to 5.92 euros (£4.03) for a four-minute call made while in Spain.
Under the changes, this would fall to 1.96 euros (£1.33).Under the changes, this would fall to 1.96 euros (£1.33).
As part of the plans, mobile users would receive a free text message informing them how much they will have to pay when travelling abroad.As part of the plans, mobile users would receive a free text message informing them how much they will have to pay when travelling abroad.
Market benefits Industry anger
MEPs have backed the plans, saying that they wanted to focus on consumer priorities. Members of the European Parliament (MEPs) have backed the plans, saying that they wanted to focus on consumer priorities.
Liberal Democrat MEP Fiona Hall said the new law would protect consumers from "abusive charges" that bore no relation to phone operators' costs.Liberal Democrat MEP Fiona Hall said the new law would protect consumers from "abusive charges" that bore no relation to phone operators' costs.
"Mobile phone users should feel the benefits of the single market and not be penalised simply the crossing a border," she said. "Mobile phone users should feel the benefits of the single market and not be penalised simply by crossing a border," she said.
After years of expanding mobile coverage, this regulation could lead to a contraction in coverage Rob Conway, GSM Association Our members operate in a highly competitive market Tom Philips, GSM Association
But she added: "Consumers should be warned that texting and data roaming are not covered under this law and charges for these services are still excessive." But she added that "consumers should be warned that texting and data roaming are not covered under this law and charges for these services are still excessive".
Some phone firms have already cut roaming costs in anticipation of the changes.Some phone firms have already cut roaming costs in anticipation of the changes.
But the industry has criticised the price caps saying they will curb competition and make it difficult for smaller firms, in particular, to remain competitive. But the industry reacted angrily to the plan, saying that regulators had failed to prove the market was not working properly and the move had been driven by "political expediency".
"After years of expanding mobile coverage, this regulation could lead to a contraction in coverage, running counter to the EU's aim of ensuring all its citizens have ready access to communications," said Rob Conway, chief executive of industry body the GSM Association. "Mobile phone operators price their services to a broad range of customers," said Tom Philips, from the GSM Association, the industry body.
"Our members operate in a highly competitive market."
The price caps may mean that smaller firms find it difficult to compete in the future and that domestic call charges could rise as a result, he added.