Mobile phone roaming charges

In a move that will slash the exhorbitant rates charged by mobile phone companies for making calls abroad, the European Parliament has backed legislation that will force 'roaming' costs down.

What are "roaming" charges?

When customers use their phone abroad - either to call home, to speak to someone in another country or to receive calls from abroad - your network provider finds a local operator to allow this, this is known as 'roaming'.

What has been happening:

• Last year Viviane Reding, EU telecoms commissioner called for caps on the rates that mobile phone groups charge Europeans to make and receive calls while travelling in the EU.

• In February of this year, the German government, holder of the EU presidency, tabled plans to cap "roaming" charges for outgoing calls at 0.60 euros a minute and for incoming calls at 0.30 euros a minute.

• Yesterday, the European Parliament backed a deal which was agreed by Senior MEPs and the European commission that will see roaming charges capped at 0.49 euros per minute for making a call and 0.24 euros per minute for receiving a call.

• This will need to be endorsed by all 27 governments in June and then the binding regulation would then enter into force in mid - July half way through the summer holidays.

While regulation in this area and a reduction in the costs of overseas calling charges is welcome (call charges are set to fall by up to 75 %) there are aspects that consumers now need to be aware of:

• Legislation only applies within the EU member states. Many consumers may be confused into thinking that these charges are worldwide, customers still need to be aware of charges when travelling to popular destinations such as the US and Australia. Research from OneCompare.com has shown that currently 49% of consumers are still unaware it costs them to receive calls whilst abroad.

• The costs of texting and data roaming are not covered under this law and will remain excessive in many cases.

Online comparison companies such as Onecompare.com let you search across network providers to see who charges what when making and receiving calls abroad.

How much cheaper will it be?

Here's an illustration from Brits favourite holiday destination, Spain.

A five minute call home from Spain could have cost as much as £4.25, and receiving a 5 minute call in Spain could have cost as much as £4.70.