A key European Parliament committee has voted in favour of a proposal to cap mobile phone roaming charges.
The EU legislature's industry committee supported a deal reached last week by negotiators for the EU parliament and member states that sets the retail roaming cap at 49 cents per minute for making a call when abroad and 24 cents per minute for receiving one, plus VAT.
The move paves the way for the entire EU assembly later this week to approve a measure that would cut costs for travellers using their phones abroad.
"Billions of euro will be saved and millions of consumers will benefit from this new legislation," Labour MEP Proinsias De Rossa said.
Mr De Rossa, who sits on the European Parliament's Employment and Social Affairs Committee, said the deal meant holidaymakers could now make mobile calls with peace of mind. "They will not now be terrified of a massive bill they cannot pay when they return home."
EU ministers are expected to back the price caps at a June 7th-8th meeting, meaning cheaper roaming rates could be in place for at least part of this summer holiday season.
Under the deal, network providers would have one month from the time the new rates officially begin to offer customers a new pricing plan. When the new rates begin depends on how fast the new regulation will be translated into all official EU languages.
Mobile phone users would have two months to choose whether they want to go with the capped roaming charges or stick with their existing service contracts.
The price ceilings would drop further, to 43 cents for making calls abroad and 19 cents for receiving them, by 2009, the negotiators agreed. The regulation will be then be reviewed.
The European Commission claims network providers are reaping massive profits from high roaming charges that can increase call costs fourfold. The cap, opposed by the telecommunications industry, aims to slash roaming fees by as much as 70 per cent.
AP