Roaming charges: save money phoning home

Mobile phone costs abroad are falling, but users at home are paying the price.  

By Kara Gammell

Using your mobile phone while on holiday will become cheaper now that an EC ruling has put a cap on the cost of making and receiving calls abroad. Internet charges on your phone may come down too, with proposals to limit the cost of data downloads expected this week.

Figures from uSwitch.com suggest that a fifth of travellers are unaware of how much their mobile phone provider charges when they use their phone abroad. Here we look at how you can prevent a hefty mobile phone bill leaving you with a holiday hangover.

What's new?

The European Commission has ruled that, within the EU, holidaymakers should pay no more than 32p a minute for making calls and 10p a minute for receiving them. The cost of sending a text on holiday will remain at no more than 10p per text, excluding VAT; customers are not charged to receive texts. The changes are part of the commission's plan to narrow the gap between domestic and overseas call rates to virtually nil by 2015.

However, there are fears that mobile phone providers are passing on the EU costs to UK consumers in the form of domestic price rises, with Orange and Vodafone introducing increases of up to 66 per cent in pay-as-you-go costs.

What about using the internet abroad?

An estimated half of holidaymakers will return home to a mobile phone bill of up to £150 because they were not aware of the cost of using the internet on their mobile phone or tablet while abroad.
While EU legislation has ruled that these charges must be capped at around £45 per month, this does not apply to holidaymakers visiting other parts of the world. A rule change last year means that if the limit is reached, the operator must cut off the mobile internet connection – unless otherwise agreed in advance.
The commission is expected to announce that from July next year, new price caps will be imposed on data downloads, so surfing the internet or receiving emails while abroad would cost no more than 81p per megabyte, falling to around 40p by 2014, compared with an average of around £1.80 today.

How about pay-as-you-go customers?

The new changes to costs will also apply to pay-as-you-go customers. However, some industry experts are concerned that these customers are footing the bill for the EU changes. Last week more than nine million Vodafone and Orange pay-as-you-go customers were warned that they will face rises in costs of up to 66
per cent for calls and texts.
From July 1, Orange customers will be charged an extra 25 per cent on all calls to other mobiles, landlines and even for checking voicemail, while the cost of sending a text has increased by 20 per cent. From July 14, Vodafone customers on its pay-as-you-go tariffs, excluding the Simply tariff, will see their calls to mobiles, landlines and voicemail increase by 66 per cent. For customers on Vodafone's Simply tariff, charges will increase by 19 per cent, with the cost of sending a text rising by 20 per cent.
Ernest Doku, technology expert at uSwitch.com, said: "Pay-as-you-go customers are being hit with a double whammy of price increases – with both calls and texts going up, they will be counting the cost whenever they pick up their mobile."
He added: "A good solution for anyone nervous about getting tied in could be to keep your existing handset and take a
30-day SIM-only deal. These currently start from just £10 a month for 100 minutes and 500 texts. If you're happy to sign up for longer, there are some great pay-monthly options out there and you could even end up landing yourself a
free smartphone."
Many mobile phone providers have cheaper packages for calling when abroad. Some add-ons are free, while others require a monthly fee – so don't forget to cancel upon your return.
Switch to aeroplane mode
According to uSwitch.com, seven in 10 consumers leave their phone switched on while on holiday. But the minute a mobile is switched on abroad, it will register onto a local network – and charge you accordingly.
If you have a smartphone, switch your handset to aeroplane mode. This normally enables you to play games or listen to music in-flight, but it also means that no phone, radio, Wi-Fi or Bluetooth signals are emitted, thus preventing any surprise charges.
Turn off your voicemail
Many mobile phone customers are unaware that they may be charged if someone calls and leaves a message. Customers will be charged international rates to receive calls – even if just from a voicemail message.
Switch to a local SIM
By swapping your SIM card for a local one, typically costing between £10-£30, you can avoid roaming charges, including those made outside the EU where the costs are not capped. However, bear in mind that you will have a different phone number while you are away, and there will be an outlay for the foreign SIM card.
Make sure that you safeguard your UK SIM card, as if it falls into the wrong hands you will have no protection in the event of fraudulent charges until it is reported as missing. One unlucky couple contacted The Telegraph when, upon returning from their Caribbean honeymoon, they discovered their SIM card had been stolen, and they were left with an £8,000 bill from Vodafone.
Check your insurance
If you have mobile phone insurance, double-check the policy wording as some providers may not cover you upon leaving the UK. However, a policy from Protectyourbubble.com will offer worldwide cover in the event of your handset getting lost or stolen.
Make sure you do your sums as cheaper policies may offer just £200 for lost baggage – and with the cost of an iPhone being as much as £550, this cover will fall well short of the mark in the event of a claim.