International call charges set to drop

Orange and Vodafone have said they will review the prices they currently charge for international roaming, after 3 announced it was scrapping charges in seven countries.

The move comes after 3 Mobile launched a new roaming price plan that treats calls or texts sent or received from countries where it has a network as if they were national, not international, calls. If other operators follow suit, it will mean cheaper international calls for consumers when abroad.

The 3 Like Home’ tariff, means customers travelling in the UK, Ireland, Italy, Australia, Hong Kong, Austria, Sweden and Denmark can use their existing minutes and text bundles without accruing any additional charges. They will also be able to send video and photos and surf and download form the internet at no extra cost.

3 said the decision will "put an end to the international roaming rip-off" charges when making calls from abroad. However, it has only scrapped roaming charges in countries where it has a network - elsewhere international calls will be subject to it.

Cheaper international calls will be welcomed, particularly as people are often wary of taking their mobiles abroad because of the fear of unexpected charges.

The European Commission last year argued that roaming costs were too high and should be regulated. Simon Bates, spokesman for Ofcom, told Computeractive: “We welcome any move made by mobile companies to reduce the cost of roaming which we believe is too expensive.”

However, although the watchdog said it would not be “putting pressure on networks to follow 3’s lead", citing the lack of legislation surrounding roaming, 3’s decision may be the catalyst consumers have been waiting for.

Robin O’Kelly, head of external communications at T-Mobile, said the mobile operator “welcomed the competition in the market". It currently charges a flat rate of 55p a minute for incoming and outgoing calls when abroad.

“Any operator that brings pricing down is doing good by the consumer. With such competition mobile operators do not need regulation from the European Commission to drive down roaming charges as the competition generated from other networks will be enough to do this,” said O’Kelly.

Vodafone said: "This just shows how competition is helping to drive down the cost of roaming across Europe.”

Orange also claimed it would introduce new services and initiatives for customers. It said: "We will announce further refreshes to our roaming rates in the first half of this year."

3’s announcement of its Like Home tariff follows research from Yougov showing that nearly half of all people travelling abroad have paid expensive bills.

For those heading abroad with their phones, Bates said: “Understand how much it costs [to roam] and whether you can afford to take your phone when going abroad. Also, ensure you contact your service provider to see if you can sign up to a price plan that may reduce calls when abroad.

“Another thing consumers must remember is many networks charge for incoming calls so it may work out better to send a text or use a local payphone,” he added.

In June 2006, Orange delivered discounts of up to 25 per cent on existing roaming rates across 25 EU countries and both T-Mobile and Vodafone reduced theirs by half.

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