Technotex Gadget Blog

More price cuts for using mobile phones abroad were announced by the European Commission today – hours after four of Europe’s largest mobile network operators lost their legal battle to stop Brussels interfering.

The European Court of Justice rejected a claim by Vodafone, Telefonica O2, T-Mobile and Orange, that the Commission exceeded its powers by imposing a uniform maximum “roaming” charge across Europe, slashing by up to 60% the prices of making and taking mobile calls while in another member state.

But the Luxembourg judges said the Commission was right to intervene in the interests of a competitive EU single market and “to protect consumers against excessive prices … even if it might have negative economic consequences for certain operators.”

The judgment said that high level of retail charges had been regarded as “a persistent problem” by public authorities and consumer protection associations throughout the EU, but efforts to solve the problem without changing existing rules “had not had the effect of lowering charges.”

Compulsory maximum roaming rates came into force two years ago to tackle what EU Telecoms Commissioner Viviane Reding called the “roaming rip-off” – mobile network operators were said to be making profits of more than 200% for mobile calls made while in another EU country, and 300% or 400% for calls received.

Ms Reding acted after warning the mobile phone industry that she was not satisfied with voluntary agreements to keep prices in check.

The result was one of the most popular consumer-driven moves by the EU – an average 60% cut in the maximum charges operators could levy on mobile users making or receiving calls while in another EU country.

The maximum charge for making a mobile call while abroad was set at 38p per minute, with a cap of 18p a minute for receiving calls, and 10p for sending a text message while abroad.

The four big mobile operators went to court in the UK challenging the validity of the move at EU level. The High Court then asked the European Court of Justice to rule on whether the EU had acted correctly.

In the meantime charges were cut again, to 35.5p a minute to make calls abroad and to 15.5p a minute to receive calls.

This afternoon the Commission welcomed the European Court verdict supporting its efforts – and promptly declared that it was cutting the permitted maximum roaming charges even further.

The new maximum tariffs will apply from July 1, just in time for holidaymakers to benefit from the lower rates.