Elizabeth Judge
Claim your free 2010 double sided wall chart
Britain’s mobile phone companies face a crackdown on the high fees that they charge users for downloading data such as music tracks and e-mails when they are abroad after a European Commission inquiry.
A study into the cost of sending text messages, downloading music and surfing the internet while away from home has been commissioned by Viviane Reding, the Commissioner for Information Society and Media.
The findings, which should be published in December, are the first steps in an inquiry that could lead to the mobile operators being forced to cut their prices. A final decision will not be taken until autumn next year.
A spokesman for the Commission said: “It is Ms Reding’s preference for the mobile operators to bring down their prices voluntarily and she has called on them to do this.” The spokesman added that if they did not, “she will be forced to take action”.
Internet access is now a standard feature on mobile phones. Users can access the net on 2.5G phones using GPRS technology or via “next-generation” 3G technology.
Many consumers, however, are unaware of the much higher prices charged by phone companies for data abroad. They find out only when they return home to high bills.
The mark-ups on data abroad are in addition to the marked-up prices on making and receiving calls.
At home an O2 pay monthly customer can sign up to a package under which he pays £7.50 a month for unlimited data access. However, customers using data abroad are charged at £6 per megabyte. That means that downloading only two songs would hit a subscriber with a £12 bill.
Brussels has already forced the mobile companies to reduce charges for calling home from abroad by up to 70 per cent after classing the costs as extortionate. However, data has remained untouched.
Mobile operators are expected to fight vigorously against any cuts to the charges, which form a key part of their future sales plan.
The operators are relying on uptake of the lucrative services to enable them to claw back the huge sums that they paid out during the auction for 3G licences at the height of the dot-com boom.
Together, Britain’s main mobile operators paid £22.5 billion for the right to “next-generation” technology. Consumers, however, have remained stubbornly uninterested and calls and text messages still make up the bulk of the phone companies’ revenues.
Yesterday O2 said that it strongly advised contract customers intending to use data abroad to sign up to specific packages.
How they compare
Vodafone
In the UK
— Contract: £1 a day
— Pay-as-you-go: £ 1 a day
Abroad
— Contract: £5-£8 a day
— Pay-as-you-go: £8 per Mb
Orange
In the UK
— Contract: £1.50 daily cap or £8 a month for unlimited access
— Pay-as-you-go: £2 daily cap or £5 for a week of unlimited access.
Abroad
— Contract: £8 per Mb
— Pay-as-You-go: £8 per Mb
O2
In the UK
— Contract: £7.50 a month unlimited use
— Pay-as-you-go: £7.50 a month unlimited use
Abroad
— Contract: £6 per Mb
— Pay-as-you-go: £15 per Mb
(Abroad is based on cost in France)
— A standard music track is typically around 3-5 MB
— A standard web page is around 100 kilobytes
Source: Company websites
Industry sectors news at a glance. Interactive heatmap, video and podcast
Everything the Business Traveller needs to know to make a better trip
Get ready for the winter sports season, with our resort guides and snow reports
We are backing British business, what is the confidence of the nation and what businesses are succeeding?
Growing demand for energy, oil that is harder to reach and the rise of carbon dioxide emissions. We examine the energy challenge
With rail travel in Europe on the rise, we review the benefits of travelling by train
In this special section we explore new food trends to help improve your dinner party and impress guests
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
1998
£47,955
2004
£56,950
Essex
Check your free Experian credit report before applying
Car Insurance
c. £70,000
The Duke of Edinburgh’s Award
Windsor
£123,460 pa
The Law Commission
London
Southwark County Council
£100,000
Home Office
Liverpool
Moments from Battersea Park.
For sale with Winkworth
Find out about shared ownership.
See your free Experian credit report beforehand
Includes flights, accommodation with room upgrades, transfers city tours in Hong Kong and Bangkok.
PremierHolidays.co.uk
For your ultimate tailor-made ski holiday, click here
Get covered on your travels with a superb range of policies at great prices. Visit InsureandGo.com
Choose from the beautiful landscape and tranquil beaches of Oahu, Kauai, Maui & Big Island.
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.