OVERSEAS MOBILE CALL COSTS SLASHED

After formal endorsement by EU governments on June 7, cuts of up to 75% in "roaming" rates are on the cards in time for the summer holidays.

Commission officials predict low costs could be a reality in mid-August for phone users asking their operators to switch them to the new "euro-tariffs" with their maximum permitted roaming prices.

Where existing mobile deals are below the euro-tariffs, users can opt to stay on their present tariff agreements.

Depending on the exchange rate, the deal means a maximum tariff of under 35p per minute for making calls on a mobile from abroad.

And for receiving calls on a mobile while travelling in other EU countries the maximum cost will be under 19p.

The agreement includes reducing capped rates even further over the next three years, by about 2p a year for making calls and 1.5p a year for receiving calls.

Some roaming tariffs can already be as low as just 3.5p a minute - but more often rates are much higher and in some cases there is a mark-up of up to 400% compared with domestic calls.

EU Telecoms Commissioner Viviane Reding hailed the MEPs' backing as a breakthrough.

"Today is a good day for consumers and business travellers in the EU," she said. "This means that already from this summer, mobile phone customers will start benefiting from substantially-reduced roaming charges when travelling from one EU country to another. Europe's internal market will finally become truly borderless, even for mobile phone bills."