EU to cut roaming charges

Stark

http://www.breakingnews.ie/ireland/?jp=MHKFKFGBCWKF

A key European Parliament committee has voted in favour of a proposal to cap mobile phone roaming charges.

Last night's move paves the way for the entire EU assembly later this week to approve a measure that would cut costs for travellers using their phones abroad.

EU ministers are then expected to back the price caps at a June 7/8 meeting, meaning cheaper roaming rates could be in place for at least part of this summer holiday season.

The EU legislature's industry committee supported a deal reached last week by negotiators for the EU parliament and member states that sets the retail roaming cap at 49 cents per minute for making a call when abroad and 24 cents per minute for receiving one, plus VAT.

The 785-seat parliament will vote on the regulation on Wednesday.

Under the deal, network providers would have one month from the time the new rates officially begin to offer customers a new pricing plan.

When the new rates begin depends on how fast the new regulation will be translated into all official EU languages.

Mobile phone users would have two months to choose whether they want to go with the capped roaming charges or stick with their existing service contracts.

This means that if there are no glitches, European holidaymakers would theoretically be able to enjoy the capped rates by mid-July.

The price ceilings would drop further, to 43 cents for making calls abroad and 19 cents for receiving them, by 2009, the negotiators agreed. The regulation will be then be reviewed.

The European Commission, the bloc's executive arm, claims network providers are reaping massive profits from high roaming charges that can increase call costs fourfold.

The cap - opposed by the telecommunications industry - aims to slash roaming fees by as much as 70%.

Currently, a Maltese calling home from Latvia can end up paying as much as €11.21 for a four-minute conversation.

The telecoms industry has warned that mobile phone users in Europe could face higher domestic charges if the EU forces telecom companies to limit the costs of international calls.

Some 150 million mobile phone customers in the EU use roaming to make calls outside their home nation every year.

The roaming caps represent one of the most significant pieces of EU regulation in recent years.

Mobile operators draw between 10-18% of their revenues from international roaming charges, according to a 2006 study by research firm Evalueserve.

So a cap of 49c/min for outgoing calls and 24c/min for incoming calls, which is a major reduction for me anyway. Looks like it will be in by this summer too, which is faster than the speed of light in EU terms.

I just hope it's not too good to be true. I don't like the way they mention in the article that they'll be giving mobile providers "a month to introduce new price plans". Surely it should just be an immediate automatic reduction in roaming charges? I mean what are providers going to do, have price plans with the reduction and price plans without? I worry that letting the providers draw up new price plans just means giving the providers a chance to screw people over in other areas/make the plans so complex that you don't notice you're still paying high roaming charges.