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Check your mobile usage
By Sarah Pennells
I'm the kind of person who generally likes surprises, but not when it comes to bills. The joy of a foreign holiday can be somewhat tempered by the hefty mobile phone bill that often follows it. When I'm abroad I don't spend hours on the phone, but the cost of a few calls still adds up quickly. And I never seem to be able to work out the cost before I dial - otherwise I'd probably padlock my phone.
It seems the European Commission has taken a similar view. It's looked into roaming charges in some detail and has set a limit on how much mobile phone companies can charge for the cost of calls made overseas. That has had a knock-on effect on the amount that customers pay and roaming charges have fallen. Orange has cut prices across the board, but customers who travel to countries where it owns networks (such as France) get the best deal.
Meanwhile, Vodafone reckons that by April next year, it will have reduced roaming charges by 40%. O² has introduced a flat-rate price of 35p a minute for calls made from any European country and introduced a £5-a-month fee for customers who travel abroad frequently and want to stay in touch. With this tariff, calls cost 70% less to make and are free to receive. The problem is it's currently only available for trips to Spain, although it should include other countries next year.
Still making profits
Mobile phone companies tend to be quite sheep-like when it comes to prices, so roaming charges are likely to fall further. The question is, if the companies receive less money for calls made when we're abroad, will they try and make up the lost revenue elsewhere?
Not necessarily, according to those who follow the big mobile companies closely. Analysts reckon that even at these lower prices they will still make a profit on calls made abroad.
One, Jim McCafferty at Seymour Pierce, says that the phone companies won't lose out because price cuts lead to consumers making up the difference by using their phones more.
Although companies have reduced their roaming charges, most have done so in a way that means you have to register for the lower rates, even if there is no upfront charge. Secondly, if you behave in the way companies expect and use your phone a lot more, your bill may remain stubbornly high. Perhaps you shouldn't throw away the padlock just yet.
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