Expats across Europe may face higher mobile phone charges to compensate for a ban on roaming charges.
The charges that are much-hated by expats, business people and tourists are set to face a European Union ban from December 2015.
The decision has already won support in the European parliament and awaits rubber-stamping by a council of ministers within a few months.
However, mobile phone companies claim the new law is poorly drafted and that domestic call charges may have to rise to cover their lost revenue.
The directive orders the firms to charge users the same price while overseas as their tariff in their home country.
Cash cow for operators
The aim of the law is to stamp out huge charges for posting to social networks or calling friends and family while overseas.
EU telecoms commissioner Neelie Kroes alleges mobile phone companies have no need to make the charge and described them as a “cash cow” for the industry.
The change will lead to huge savings for consumers – providing domestic tariffs stay more or less the same.
From July 2014, other EU laws mean roaming costs will tumble from £376 per gigabyte to £167 a gigabyte – and in December to the British average domestic tariff of £10 per gigabyte.
Meanwhile, 15 mobile phone operators have formed a coalition to fight the change.
The members include Three, Virgin Media, Free (France) and CoopItalia.
“Roaming may cost less, but general tariffs would increase, and non-roaming customers will subsidise bills for roaming customers,” said a spokesman.
Mobile operators rally against new law
The group warned British expats and travellers may end up paying more than most as they move around Europe the most.
The European Telecommunications Network Operators’ Association explained that taking away a profitable source of revenue for mobile phone companies could force networks to cut investment, which could slow down the roll out of superfast 4G services.
If passed, the new law will apply from December 15, 2015.
“Consumers will have the confidence to stay connected when travelling without incurring extra charges over and above the tariffs which they pay in the country where their contract was taken out,” said the EU spokesman.
The spokesman also explained the law only applies to the EU, and those living or travelling further will still have to watch how they use their phones to avoid high charges.
