EC to cut the cost of calling while abroad

Calling home while you are on holiday in Europe is set to become cheaper, after the European Commission (EC) unveiled plans to cut the cost of using a mobile phone abroad.

In fact, under a new scheme mobile bills could fall by up to 70 per cent, however mobile phone operators are set to challenge the ruling.

Currently, holidaymakers using their UK mobile phone in a different EU country are charged on average 42 pence a minute to receive calls, and up to £1.20 a minute to make calls.

And this is too much for the EC, which announced plans to cut this cost to around 11.5 pence a minute to receive calls and 35 pence a minute to make calls.

"We have no alternative but to intervene to protect the interest of consumers," said EC president Jose Manuel Barroso.

"We will give operators a final chance to show that they are serious about self-regulation. If they are, the regulation will have no practical effect as such.

"I expect operators to voluntarily lower prices to acceptable levels."

The EC plans must be ratified by the European Parliament, and then by national parliaments, to come into force - the commission is hopeful they will be in place in time for the summer holiday season in 2007.

However, Robert Kenley, head of mobiles at price comparison website moneysupermarket.com, did not think the reforms went far enough.

"The EC clamp down on roaming charges is long overdue, but the resulting proposal is a complete disappointment to the consumer," he said.

"Roaming charges are too expensive, particularly the cost for receiving a call when abroad. Some phone companies have already taken a proactive step and reduced the cost of calls while abroad. However, it remains to be seen whether other providers will follow suit.

"We would like to see all extra charges abolished for calls within the European Union, which would mean paying the same for using your mobile regardless of whether you’re in the UK or elsewhere in the EU. In the meantime, consumers should check roaming costs before they head off abroad to avoid a shock when they receive their bill back in the UK." XXX