The regulation sets a maximum price for all outgoing and incoming calls for those travelling within the EU. The maximum fee for making a call is 49 cent per minute and 24 cent for receiving a call. This does not include VAT, which adds a further 21 per cent to the fee.
How much are consumers likely to save?
The savings will be considerable, particularly for pre-pay users. For example, Vodafone pre-pay users can be charged up to €3.49 per minute to roam in certain EU states such as Slovakia, Latvia, Estonia. This should drop to 59 cent per minute.
Can firms charge less than the new Eurotariff?
Yes. Many firms will rethink their packages and may release new offers below the cap. Some firms already claim to provide cheaper roaming.
Will consumers automatically benefit from the Eurotariff?
About 80 per cent will be automatically switched over to the new tariff within three months of the regulation passing. Consumers can request to move earlier by contacting their operator in July, or they can choose to stay on existing price plans.
What about people already on special roaming tariffs?
About 20 per cent of subscribers are on roaming tariffs and will not switch automatically. But everyone has to be informed about the new tariff by their operator. National regulators should check that people on existing tariffs pay no more than the Eurotariff.
Will the price of text or media messages also be regulated?
No. Despite lobbying by consumer groups, data services stay outside the regulation. But the European Commission has said it may introduce similar price controls if charges do not drop before a review in 18 months.
How long will the regulation be left in place?
It will force prices down in 2008 and 2009, when the cap for outgoing and incoming calls falls to 46/22 cent per minute and 43/19 cent per minute. It will expire in 2010 unless the commission decides there is still not enough competition in the market.