The cost of using a mobile phone abroad is set to fall in July.
Holidaymakers will pay no more than 70 cents (57p) per megabyte to download data or browse the internet while travelling in another European country, thanks to a price cap set by the EU.
It is the first time a limit has been set on the cost of roaming internet usage in Europe and will be a relief to many travellers. The current average cost across the four big networks is £1.80 per megabyte, according to uSwitch.com – more than twice the new limit. The EU Commission expects the cap to save families more than €200 (£160) a year. Business travellers could save over €1000 (£800).
The cost of calling and texting will also fall from July. Consumers will pay no more than 29 cents (23p) a minute to make a call to another European country, down from the current maximum of 35 cents. The price cap to receive a call from another EU state will drop from 11 to eight cents (6p) a minute, and from 11 to nine cents (7p) to send a text message.
The cuts are the latest in a series of clampdowns on roaming mobile charges. Price caps for calling and texting were first introduced in 2007 and the EU calculates that the cost of using a mobile abroad this summer will in total be 75% cheaper than in 2007.
Neelie Kroes, vice-president of the Commission, says: "By putting price caps on data we have created a roaming market for the smart phone generation. More than that, we have ended the rip-offs familiar to anyone who has used a mobile phone while travelling abroad. I am pleased that year after year the European Union is putting money back in the pockets of citizens."
Further cuts to roaming charges are expected over the next two years. The maximum cost of data downloads, for example, will drop to 20 cents per megabyte by 2014. The price caps are part of an EU plan to align national and roaming rates by 2015, so the cost of making a call from another European country will be the same as calling someone in the UK.
Ernest Doku, technology expert at uSwitch.com, says: "Too many Brits have returned home with the holiday souvenir from hell – a huge mobile-phone bill. But this will hopefully change from July 1."
However, some experts warn that the price cuts in Europe could push up bills at home.
It is easy to run up a big bill if you access the internet on your mobile abroad. Smartphones can eat up one megabyte of data streaming music for just one minute, or viewing five web pages. Facebook and Twitter are also data-hungry.
Last year, the EU imposed a €50 cap on data spending to try to lessen so-called "bill shock". Customers are now alerted when they are near the €50 limit so they do not unwittingly run up a big bill. From July, people who are travelling outside the EU will also receive a warning text when they approach the €50 limit.
However, no price caps for either calls or data exist outside the eurozone – and the cost can be high. For example, one megabyte of mobile internet data outside the EU costs on average £6, but can be as much as £8. There are also no spending limits for calls or texts either inside or outside the EU.
If you are planning to take your mobile phone on holiday this summer – or even to the Euro 2012 football tournament in Ukraine – then you should make sure the cost does not ruin your trip.
l If you are travelling abroad, always talk to your network operator first. Roaming charges are not normally included in a standard package, but some networks offer "bundles" that can save you money. Some networks, such as O2, offer bolt-ons for people who need to call the UK from abroad.
l Switch off your data roaming before you go away to prevent online services such as email updating automatically. Also switch off automatic app updates.
l Turn off your voicemail. You are normally charged roaming rates every time you listen to a new message, so it's a good idea to leave a greeting explaining that you are away.
l Take advantage of free wi-fi hotspots if you need to access the internet while you are away.
l If you must use the web overseas, the free Onavo app compresses data so it can save you money.
l You can cut call costs by buying a local SIM card.
l Remember that it's free to receive texts, so ask friends and relatives to send you a text message rather than call or email.
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