EU telecom ministers yesterday agreed to European Commission plans to cap the price of mobile phone calls abroad, with this summer's holidaymakers likely to benefit from the consumer-friendly law.
Under the plan, the maximum price for making calls while abroad will be €0.49 per minute while receiving calls abroad will cost €0.24 - value added tax excluded.
By 2009, these prices will drop to €0.43 and €0.19 respectively.
The contrast with current prices is stark, with the cap limits representing a price reduction of up to 70 per cent.
At the moment, an Irish person phoning home with their mobile from Malta can pay almost €12 for a four-minute call, while a four-minute call for an Austrian in Malta costs €10.
For a Spanish customer in Latvia, it costs €6.31.
The commission says the differences between national and roaming prices cannot be explained by costs to operators.
"For too long, consumer complaints that roaming charges were punishing those who cross a border went unanswered," said telecom commissioner Viviane Reding.
Calling it a "landmark" decision, the commission said it would pave the way for cheaper roaming rates in the EU.
According to research firm Evalueserve, about 150 million people in Europe use their phone to make calls while abroad.
When exactly they will feel the effect of the legislation will depend on it coming into force as planned on June 30th. But Ms Reding urged a quick turnaround. "Millions of citizens are waiting," she said. "Let's get the job done."
After it goes into force, operators will have one month to offer lower prices - these could be in place by August.
Then, the consumer will have two months to decide whether to opt for the new price structure before automatically being transferred to a new contract.
The legislation is part of a Brussels push to make laws that directly benefit consumers.