European Union slashes mobile phone charges
August 9th, 2007Here is a good news for many Europeans heading off their home. They need to pay less for calling home. A new regulation, by the European Union, has capped the mobile phone charges. Under the new rules a phone call from Paris to Germany will cost only a maximum of 49 cents (33p) a minute instead the previous roaming cost of about €4 (L2.70) a minute. The cost of receiving a call abroad has also been capped at 24 cents (16p) a minute. This reduction is due to the consumer-friendly policies adopted by Brussels. The “Eurotariff” is aimed at the reduction of phone bills of nearly 490 million users living in 27 member countries of EU.
Based on the results of an investigation that mobile phone firms made about €8.5bn (L5.7bn) profit a year from roaming charges the above decision has been taken by the EU.
Dead line for mobile phone companies to ask their customers to adopt the new Eurotariff has already expired. A Cypriot firm called Cytamobile is the only Mobile phone company who did not offer their customers while the rest of the 94 companies have already taken action.
There is strict warning from Ms Viviane Reding, EU Telecom Commissioner, that there would be sanctions against those who violate the law. It may be noted that twenty-one operators, including Britain’s Virgin Mobile, two in Germany and all companies in Latvia, did not respond to the EU’s enquiry ahead of the deadline. However, regulators said that did not necessarily imply they were breaking the rules.
Many companies including Spain’s Telfonica and Italy’s Wind have already put the new price into force in time for the holidays and Ms Reding had all the praise for them. However the companies legally have time until 30 August to activate the new tariff to the users who have responded to the new offers.
Most UK operators including Orange, T-Mobile and Vodafone are not bringing in the cut rates until the end of August. There will be an automatic switch over on 30 September, for all users who has not responded to the offer.