CONSUMERS NEED no longer worry about accidentally running up huge bills using their mobile to connect to the internet when abroad in the EU with the introduction of a cap on charges today.
The €50 cap will apply to the roaming charges imposed when a consumer connects to the internet using a smartphone or other mobile device.
Operators will also have to send users a warning when they reach 80 per cent of this limit.
The changes ordered by the European Commission should put an end to horror stories experienced by holidaying consumers who found they had run up massive bills by transferring data using their mobile.
One British student studying abroad ran up a bill of €9,000 for just one month of data roaming while a German tourist reported being charged €46,000 for downloading a TV programme while holidaying in France. Last year, one Irish holidaymaker ran up a bill of €200 when using his iPhone as a satnav in France.
With the new generation of mobile phones offering internet access, the problems with high roaming charges have multiplied, forcing the commission to act.
Operators will have to cut off the mobile internet connection once the limit has been reached, unless customers have indicated they want to continue data roaming that particular month. Subscribers will be able to choose a limit higher or lower than €50, if they so wish. The maximum wholesale prices for data roaming are also being cut, from €1 to 80 cent per megabyte.
The maximum price for making a roaming call is being cut to 39 cent per minute (excluding VAT), instead of the current 43 cent, while receiving a call will cost a maximum of 15 cent per minute (ex-VAT), instead of 19 cent.
The commission says the cost of making and receiving calls when abroad in the EU is now 73 per cent cheaper than in 2005, when the issue of excessive roaming charges was first tackled.
Receiving a voicemail message while roaming, indicating a new voicemail has arrived, is now free, but consumers will continue to be charged for listening to their messages. Prices for sending short text messages will remain at 11 cent per message.
The changes apply only within the EU, so phone users will still have to be careful about running up high bills in other countries.
Also from today, charges for a wide range of services provided by local authorities could rise.
Under a provision of the Finance Act 2010, local authorities are required to charge VAT on their services from today. The change will add 13.5 per cent to the cost of collecting household waste, 21 per cent to parking charges and 13.5 per cent to the cost of graves.
However, many local authorities are expected to absorb the increase for the time being.
DIALLING UP PRICES DOWN:
Comparative prices for making a roamed call including VAT (1 minute)
Ireland travelling to Italy
2005: €1.34
July 2010: 47 cent
Comparative prices for receiving a roamed call including VAT (1 minute)
2005: €1.34
July 2010: 18 cent