The EU votes to cap prices for people using mobile phones abroad.

Following a proposal to the European Union (EU) in September 2008, overwhelming support has been given to lower mobile phone pricing for consumers texting, calling and using the internet abroad.

The European Commission had asked mobile phone operators to voluntarily review their mobile phone costs, in light of a review in 2007. However, monitoring has seen prices remain high. The Commission put a proposal to the EU in September 2008, which has since been voted on; with the legislation passed by 646 votes in favour and only 22 against (it had already been approved by EU telecoms ministers).

The legislation, which comes into force on 1 July 2009, will mean that sending an SMS from abroad would cost no more than 11 cents (10p) and receiving an SMS in another EU country will remain free.

Call prices will also be affected, with outgoing calls reduced from 43 cents (40p) to 39 cents (35p) and the price for receiving a call reduced from 19 cents (17p) to 11 cents (10p). Consumers will also benefit from per-second billing after 30 seconds for calls made to ensure there are no ‘hidden costs’ when they are roaming.

Data download is not under the radar, as a €1 (90p) per megabyte safeguard limit is introduced for wholesale data roaming fees to make them “more predictable for operations, stimulate competition and enable even more transparent retail prices.”

From next year mobile operators will also be forced to provide customers with the opportunity to determine, in advance, an upper limit for their calls while abroad, before they are cut off. They will then receive a message when they have reached the limit – the default financial limit will be set at €50 (£45).
 
Commenting on the changes, Viviane Reding, Commissioner for Information Society and Media said: “Just in time for the summer holidays, European citizens will now be able to see the single market without borders on their phone bills.”

All prices determined in the legislation exclude VAT.