Mobile roaming prices cut but competition still too weak, says Commission

So-called 'roaming charges' have been capped by the European Commission since 2007 but the caps were lowered in July 2009 and lowered further this month. Mobile operators have cut their roaming charges in line with the caps, according to a Commission report, and price transparency has improved. But the Commission wants to see prices fall further.

"The cost for roaming calls has decreased by more than 70% since 2005 and sending a text message between EU Member States costs 60% less," it said in a statement.

From 1st July, the data roaming limit will be automatically set at €50 excluding VAT, unless the customer has chosen another limit, which may be higher or lower.

Operators will have to send users a warning when they reach 80% of their data-roaming bill limit. The operator will have to cut off the mobile internet connection once the limit has been reached, unless the customer has indicated they want to continue data roaming that particular month. In addition, maximum wholesale prices for data roaming will fall from €1 to 80 cents per MB.

The cap should mean that users no longer receive massive bills after downloading music or watching videos on their phones while travelling abroad. The Commission cited an example of a German traveller who downloaded a TV programme while roaming in France and faced a bill of €46,000.

The maximum price for making a roaming call will be cut to 39 cents per minute (excluding VAT), instead of the current 43 cents, while receiving a call will cost a maximum of 15 cents per minute (excluding VAT), instead of 19 cents.

But Commission Vice President for the Digital Agenda Neelie Kroes is keen to see costs fall further, and she believes that can be achieved through increased competition.

"The cost of using mobile phones or devices when abroad in the EU has fallen continuously since the adoption of the first roaming rules," she said. "But three years since the rules came in, most operators propose retail prices that hover around the maximum legal caps. More competition on the EU roaming market would provide better choice and even better rates to consumers."

In a statement the Commission said the EU rules "give operators plenty of margin to offer more attractive roaming tariffs below the regulatory limits."

"Ultimately the difference between roaming and national tariffs should approach zero by 2015," it said.

Several UK mobile operators tried to challenge the EU's Roaming Regulation in the Court of Justice of the EU. It ruled last month, though, that the Roaming Regulation was legally valid

The Commission will review the 2009 roaming rules in full by the end of June 2011.