Threat of EU action sends mobile phone operators scurrying to cut prices - Watson

11.17.05am BST (GMT +0100) Fri 20th Oct 2006

Graham Watson Liberal Democrat MEP for the South West and Gibraltar has hailed yesterday's announcement by mobile phone operator O2 to cut roaming charges for customers travelling abroad as a success of European Union action.

Speaking about the announcement, Graham Watson MEP said:

"O2's announcement, however belated, is a positive signal for consumers. For a European Union founded on a strong internal market, rip-off roaming charges are utterly unacceptable. There is still a way to go before roaming charges are levelled throughout the EU, but I applaud this decision by 02 as a step in the right direction and a success for consumers and for the European Union."

This decision comes on the back of moves by the European Commission this summer to cap roaming costs throughout Europe. Finally fed up with mobile phone operators charging excessively high tariffs for roaming - sometimes up to three or four times the price of making the call - the European Commission suggested an immediate cap of 30% above the domestic rate on received calls abroad and a period of six months grace before a similar cap is imposed on out-going calls made from abroad.

Roaming charges will next be debated in the European Parliament at the end of November when members of the industry committee will discuss how to get the best deal for consumers without limiting the ability of the market to offer their own best deals.