New rules call time on telecoms 'roaming rip-off'

MOBILE PHONE roaming charges fell further yesterday when new rules came into force to cap the fees networks can charge for data use when travelling within the EU.

Operators will also be forced to implement an automatic €50 cut-off limit on accounts unless the customer stipulates their own limit, preventing users from accidentally running up large bills for connecting to the internet through their phone.

Under the new regulations, the maximum wholesale price networks can charge for data use has been cut from €1 per megabyte to 80 cent. Making a call while roaming on networks within the EU will cost users a maximum of 39 cent before VAT, while the cost of receiving calls drops from 19 cent to 15 cent per minute.

Text message charges remain the same at 11 cent before VAT.

The new regulations are designed to protect consumers from “bill shock”. The operating network must send customers a warning when they reach 80 per cent of their data-roaming billing limit. If the limit is reached, the operator must cut off the mobile internet connection unless the customer has declared in advance a wish to continue data roaming above their normal agreed limit in a particular month.

Compulsory maximum roaming rates were first imposed on mobile network operators two years ago to tackle what former EU telecoms commissioner Viviane Reding described as the “roaming rip-off”.

Mobile network operators were said to be making profits of more than 200 per cent for mobile calls made while in another EU country, and 300 per cent or 400 per cent for calls received.

However, some networks have tried to fight the introduction of the roaming caps. A recent case in the European Court of Justice ended when the court ruled that Brussels was right to “protect consumers against excessive prices . . . even if it might have negative economic consequences for certain operators”.

The commission says it will review the roaming charges again next summer, when there may be further price cuts.

(Additional reporting: PA)