New rules slash the cost of using your mobile phone abroad

29 June 2007

Ofcom today welcomed a new European law - which comes into force tomorrow - that will significantly reduce the amount consumers pay to use their mobile phones abroad.

From the end of August a new Eurotariff will come into effect offering savings on what most consumers currently pay.

From September, a call anywhere in Europe under the Eurotariff will cost no more than 49c (circa 38 pence per minute inc VAT*) per minute to make and 24c (c. 19 pence per minute inc VAT*) per minute to receive. This means an average reduction in retail prices of more than 50% for most
users.

The new law requires all mobile network operators in Europe to implement the following timetable:

* By the end of July, the operators must contact all of their
customers to inform them of their tariff options and explain when the new Eurotariff will be made available;

* By the end of August they should introduce the new tariff, both for new and existing customers;

* By the end of September, they should transfer all customers to the Eurotariff automatically, except for those customers who have explicitly chosen another tariff; and

* From the end of September, operators must send an automatic SMS message whenever a customer crosses a border clearly explaining how much it will cost to make and receive a call in that country.

Some providers may be able to offer the new Eurotariff during the peak holiday season and before the mandatory introduction at the end of August. This should be made clear when the provider contacts their customers during July. If not, consumers should ask their operator when it will be made available.

Many consumers have already signed up to roaming tariffs that reward greater use with lower prices. These users will not be transferred to the new Eurotariff unless they specifically request it. In some cases, other tariffs offer even greater savings than the new Eurotariff. All consumers, whether they have already signed up for other tariffs or not,
should consider carefully which tariff option best fits their needs. Providers should supply clear information which makes this choice easier.

For anyone planning to travel abroad before the new tariff is made available by their provider, Ofcom has published a number of handy hints to help them keep mobile costs down. This is available on the Ofcom Consumer Portal at http://www.ofcom.org.uk/consumeradvice/mobile/cost/

Ed Richards, Ofcom Chief Executive, said: "This new law is great news for consumers travelling abroad and wishing to remain in contact with friends and family at home.

"Ofcom will be keeping a close eye on the implementation process to ensure that the new tariff is introduced as soon as possible and within the timescale outlined in the regulation.

"Wherever possible, I would encourage all mobile providers to introduce the tariffs earlier than the formal deadline to maximize the benefit to customers travelling this summer."