Under the new rules, network providers can charge no more than 9p (€0.11) for sending a text message from Europe. The cost of mobile web access will also be capped at 93p (€1) per megabit (Mb), a charge that will then fall to 71p (€0.80) in 2010 and 41p (€0.50) in 2011.
The rules, which apply until 2012, will also see calling charges capped to 38p (€0.43) a minute for an outgoing call as opposed to the current 41p (€0.46) cap. The charging limit on voice calls received will also be reduced from 20p (€0.22) to 17p (€0.19) in July and then down to 9p (€0.11) by July 2011.
Some network providers have already taken action to reduce the cost of calls and texts made overseas. As highlighted below, 3 and O2's charges already fall within the new EU limits. But Vodafone has also announced a new initiative - from June 1, Vodafone customers will be able make calls and send texts from 35 European countries for the same price as if they were here in the UK. This is a three-month trial but it obviously runs over the summer holiday period - great news for British travellers.
However, don't forget that the tariff restrictions only apply to calls and texts from European countries - if you're travelling further afield you will continue to pay significantly more.
How the networks compare
Most of the leading UK networks offer different rates based on whether you are making or receiving a call overseas. Several also have unique roaming tariffs designed for frequent travellers to certain countries. Here is a quick guide to what's on offer and how much each network charges.
3 Mobile
3 Mobile has recently increased its prices for roaming due to Sterling's loss of value against the Euro. It now charges both its pay-as-you-go (PAYG) and pay monthly customers 34p a minute to make a call when abroad in most European countries and 15p a minute to receive a call. The prices increase if you're further afield such as 90p a minute to receive a call in the USA and £1.40 a minute to make a call. Sending and receiving text messages meanwhile costs between 25p and 35p depending on the country you are travelling to.
3 has announced that it will be changing its roaming prices from July 1. Until then however, its customers can take advantage of the 3 Like Home tariff which offers reduced prices on its sister networks in Australia, Denmark, Hong Kong, Italy, Ireland and Sweden.
O2
Much like 3, O2's calling charges already fall within the new EU cap. It charges contract-customers 35p per minute to make a call in western Europe, 18p to receive one and 25p to send a text. Prices leap however, if you're travelling in Canada or the USA - you'll be charged £1.37 a minute to make a call, £1.03 a minute to receive one, while its text message prices remain the same. Its PAYG charges differ slightly from the pay monthly tariffs when travelling outside the EU.
However, O2 does offer the International Traveller Service (ITS) tariff which can knock as much as 80% off call costs depending on where you're travelling to - for example it costs just 17p a minute to make a call from the USA with ITS.
Orange
Orange has different calling zones each with different charges for its pay monthly customers. For example, making a call abroad while in the 'Europe 1' calling zone which includes France, Spain and Italy costs 37.2p a minute while receiving a call costs 18.6p a minute. In the Europe 2 zone however, which includes North Cyprus, Croatia and Turkey, charges leap to £1.30 a minute to make a call and 70p a minute to receive one. Its PAYG customers face increased charges in most zones.
The network doesn't offer a special roaming tariff but does offer pay monthly bundles allowing customers to save more than 20% on calls made and received in select countries. There is also a world traveller bundle with savings up to 50% for those roaming further afield.
T-Mobile
The network has recently slashed some of its rates by as much as 54p. Its pay-as-you-go (PAYG) and pay monthly prices are the same with it now costing 38p a minute to make a call in Spain and France and 19p to receive one. Text messages are just 25p. The prices increase the further abroad you get although T-Mobile is among the more competitive networks in the USA due to its large infrastructure there. It costs 55p a minute to make and receive calls and 40p to send a text message.
Vodafone
The company has some of the more straightforward pricing as it has just four clear zones - Europe, Asia Pacific, North America and the Rest of the World. With its standard plan you can make a call in Europe for 38p a minute and receive one for 19p a minute. Text message charges are set at 25p. In North America the costs rise to £1.25 a minute to make a call if you're in one of Vodafone's preferred networks and 99p a minute to receive one. Text message costs leap to 35p.
Vodafone does however offer a number of special tariffs for regular travellers. These include the International Call Saver which gives discounts on calls made outside Europe; and the Vodafone Passport with which, for a connection charge of 75p, you can make and receive calls at your usual rate.
Think before you speak (or text)
If you only go abroad a few times a year, you're unlikely to change your network provider just because of overseas mobile charges particularly as there is no clear market leader for foreign usage. However, as we illustrate above, the costs of using your mobile abroad are significantly higher than those here at home, so it's important to be aware of how easily your bill can mount up if you're not careful - and only make a call or send a text if it's essential.
However, if you're a frequent traveller or are about to set off on an extended trip, it is well worth looking into other options, as there are ways to significantly slash the cost of using a mobile when abroad.
Are there any other options?
For business and other regular travellers there are savings to be made by taking out a traveller's SIM card with one of the leading providers such as Story Telecom, Simply Fone, Go-SIM or OneRoam. This allows you to switch out your own phone's SIM card so that your calls go through the local provider wherever you are.
If you opt for a SIM you have two options - a local SIM card or a global SIM card. Local SIM cards only offer savings in one specific country, whereas global SIM cards are for everywhere making them ideal for backpackers and regular business travellers. As long as you make around 100mins of calls in the country you plan to visit, the cheapest SIM card will invariably be less expensive than the cheapest network's call charges and you'll quickly recoup the initial outlay of buying the SIM card.
Just remember that many SIM cards include automatic top-up systems so make sure you opt out of these to avoid adding more credit than is necessary.
Disclaimer: Please note that any rates or deals mentioned in this article were available at the time of writing.
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