Mobile operators begin to cut roaming prices

Roaming price cuts but EC says they don’t go far enough

Pressure from the European Commission appears to be having an effect in the run-up to new legislation to cut mobile phone roaming rates.

Three UK mobile phone operators have recently announced cuts to their roaming charges.

Operators Vodafone, O2 and Orange have said that over the coming months they will introduce lower prices for customers calling to or from abroad. Both O2 and Orange plan to have lower prices in place by this summer.

Orange plans to cut roaming rates by up to 25 per cent and O2 is to introduce a flat rate of 35p per minute for calls within Europe compared to charges that have ranged between 58p and £1.49 per minute.

Vodafone said although it would be slashing prices by up to 40 per cent, this would take place over a period extending to summer 2007.

The European Commission, which called on operators to reduce their charges in October 2005, said this was a step in the right direction. But a representative said that these cuts were not enough to remove the need for regulation to bring down international roaming charges.

International roaming allows mobile phone users to make and receive calls and text messages while travelling abroad. Each nationally based mobile operator has agreements with overseas networks that allow its customers to use their mobile phones in other countries - providing their handset is compatible with those networks.

However, consumers don't always get a good deal. A recent study showed European consumers are getting ripped off across the board.

The average cost per minute in Europe is more than three times the rate in Asia, according to research conducted over the past year by Telecommunications Management Group (TMG).

These high costs and the way roaming charges are calculated are behind moves by the European Commission to force operators to cut prices. It hopes to have regulations in place before summer 2007.

Meanwhile, Ofcom has published a guide to help consumers find the best deals when making mobile phone calls abroad.