EU to curb ‘excessive’ internet charges

Just days after declaring more cuts in mobile phone roaming charges, Brussels stepped up the campaign against network operators by calling for the proposed slashing of “data roaming” costs.

The Commission says consumers are currently charged an average of £2 per megabyte when downloading abroad on another mobile group’s network – and in some cases as much as £10.70.

Under plans expected to be approved by MEPs and EU ministers, the maximum that operators can charge from July 1 next year will be just 80p per megabyte, falling even further in July 2014 to 45p per megabyte to download data or browse the internet whilst visiting another EU country.

But the Commission acknowledged in a report that its campaign so far of enforced price caps on the cost of using mobile phones abroad – first introduced four years ago – had not had the long-term effect of opening up the market: operators simply apply the compulsory charge at the maximum allowed but have no incentive to cut prices further.

So these proposals also recommend that, from July 1, 2014, mobile customers will be able for the first time to opt for a cheaper mobile roaming contract – separate from their national mobile contract – while using the same phone number and SIM card.

And to boost competition further, “alternative” mobile operators – such as supermarkets – will be able to offer roaming services alongside established companies, aided by rules allowing them to use other operators’ networks in other member states at regulated wholesale prices.

That, said EU Digital Agenda Commissioner Neelie Kroes, should encourage more operators to compete on the roaming market: “This proposal tackles the root cause of the problem – the lack of competition on roaming markets – by giving customers more choice and by giving alternative operators easier access to the roaming market.”