EU caps mobile roaming charges

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European mobile roaming rates are set to fall by as much as 70 per cent for some customers as early as this summer as an EU council voted in favour of adopting new price capping regulations.

After months of political debates throughout European Commission (EC) bodies, the EU Telecom Council voted to cap prices today in Brussels.

"This decision paves the ways for cheaper roaming rates throughout the EU, a landmark for Europe as it clearly responds to the wishes of consumers," said EU telecom commissioner Viviane Reding.

According to the EC, at current prices, an Austrian living in Malta could pay €10 for a four minute call home, while a Cypriot customer visiting Belgium could pay €12 for the same call.

From this summer, a "Eurotariff" will come into play, which will limit the maximum price per minute for calls made abroad. This summer, the maximum charge for calls made abroad will be 49 cents, dropping to 46 cents in 2008 and 43 cents in 2009. The charge for calls received abroad will be capped at 24 cents this summer, falling to 22 cents in 2008 and 19 cents in 2009.

"For too long consumer complaints that roaming charges were punishing those who cross a border went unanswered," said Reding. "National regulators felt powerless as roaming, because of its cross-border nature, went beyond their jurisdiction. My repeated call to operators to lower roaming charges voluntarily was not taken seriously."

So far, the regulation only caps voice services - not text messages or data services. The commission said it will closely monitor prices in those areas, and hopes operators will keep those roaming prices low in order to avoid new regulations and to even try to offer lower prices than the Eurotariff.

"I call on all mobile operators to now start a race for the most attractive roaming package and even to improve the 'Eurotariff'. This would be a clear sign that following this regulatory intervention, Europe's mobile roaming markets are finally moving towards competition," Reding said.

The roaming regulation covers the 27 EU member countries as well as Iceland, Norway and Liechtenstein, which are part of the European Economic Area.

EU member states are expected to formally adopt the rules on June 25, with the regulation to be published a few days after, the EU told media. Once the rules are published, mobile operators must offer the Eurotariff prices to their EU customers within a month.

If customers choose to accept the new pricing scheme - rather than keeping their current package, which may already be cheaper - the operator must then flip their contracts within a month. Customers without a current roaming package will be automatically switched to a Eurotariff after two months.

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