MSE News: EU mobile charges cut, with data roaming slashed

Former_MSE_Helen

"Using the mobile internet in another European Union country became cheaper yesterday..."

Read the full story:
EU mobile charges cut, with data roaming slashed

NFH

Most UK networks are already breaching the retail price cap for data that came into force yesterday on 1st July.

As confirmed by the European Commission press release, the retail price cap per megabyte is €0.70+VAT and exchange rates used must be those published in the EU Official Journal on 1st June 2012, where the EUR/GBP rate was 0.7999. Therefore the retail price cap in GBP including VAT is:

€0.70 x 0.7999 x 1.20 = £0.671916

However, most UK networks are quoting a higher retail price per megabyte of at least £0.69. For example Orange is quoting a price of £0.6966 and Vodafone is quoting a price of £0.696.

What action will be taken against the networks for flouting the price caps on day one?

Notmyrealname

At least now most networks are doing stuff like giving flat fee data in Europe for around £3-£5 a day.

Notmyrealname

NFH wrote: »

Most UK networks are already breaching the retail price cap for data that came into force yesterday on 1st July.

As confirmed by the European Commission press release, the retail price cap per megabyte is €0.70+VAT and exchange rates used must be those published in the EU Official Journal on 1st June 2012, where the EUR/GBP rate was 0.7999. Therefore the retail price cap in GBP including VAT is:

€0.70 x 0.7999 x 1.20 = £0.671916

However, most UK networks are quoting a higher retail price per megabyte of at least £0.69. For example Orange is quoting a price of £0.6966 and Vodafone is quoting a price of £0.696.

What action will be taken against the networks for flouting the price caps on day one?

Except that today, 1 Euro = 0.806774687 British pounds so your price you quoted is wrong.

For £0.69p inc VAT, there will be no action taken against them as there will be flexibility allowed for currency exchange rate fluctuation.

NFH

Notmyrealname wrote: »

At least now most networks are doing stuff like giving flat fee data in Europe for around £3-£5 a day.

That's still very expensive though. As others have pointed out in other threads, Vodafone used to charge £10/month for 25MB/day but they now charge £3/day instead (£90/month).

NFH

Notmyrealname wrote: »

Except that today, 1 Euro = 0.806774687 British pounds so your price you quoted is wrong.

For £0.69p inc VAT, there will be no action taken against them as there will be flexibility allowed for currency exchange rate fluctuation.

No, you're totally wrong. I've already posted a link above to the European Commission press release where it states clearly "Currency exchange rates are calculated based on the rates published in the EU Official Journal on 1 June 2012 and will be revised annually". This has been the calculation method for the last few years, whereby the exchange rate is fixed annually before the new price caps come into effect on 1st July. The Wikipedia article on this subject gives a history of previous exchange rates with links to the EU Official Journal for each date.

It's bad enough that the networks set their retail prices at the price cap level rather than setting various competitive prices substanially below it, but going above the price cap is a disgrace.

moneyballs2

Cap at 0.09EUR to send a text message.

Some networks charge 0.10GBP if you've gone over your allowance. (Three charges 11p) So, it works out cheaper to send a text message abroad, assuming no monthly allowances!

NFH

moneyballs2 wrote: »

Cap at 0.09EUR to send a text message.

Some networks charge 0.10GBP if you've gone over your allowance. (Three charges 11p) So, it works out cheaper to send a text message abroad, assuming no monthly allowances!

Very good point. Which? published an article on exactly this anomaly.

Badger_Lady

Orange are now apparently charging £69.66 per MB (Martin's even quoted it in one of his articles). Surely this is over 1000 times the EU data cap..? And even if it's a typo (that's repeated everywhere) and should read 69p, it's still over the limit..?

NFH

Badger_Lady wrote: »

And even if it's a typo (that's repeated everywhere) and should read 69p, it's still over the limit..?

Indeed, the price cap is €0.70 x 0.7999 x 1.20 = £0.671916

The confusion has been created by Ofcom, who are stating the new price cap is 58p+VAT, whereas in fact the new price cap is €0.70 x 0.7999 = £0.55993+VAT. Ofcom have apparently mistakenly told the networks to use a EUR/GBP rate of 0.82930 instead of the correct rate of 0.7999, according to this other thread. Although Ofcom are aware of their error, they have neglected to rectify this mess.

Badger_Lady

NFH wrote: »

Indeed, the price cap is €0.70 x 0.7999 x 1.20 = £0.671916

The confusion has been created by Ofcom, who are stating the new price cap is 58p+VAT, whereas in fact the new price cap is €0.70 x 0.7999 = £0.55993+VAT. Ofcom have apparently mistakenly told the networks to use a EUR/GBP rate of 0.82930 instead of the correct rate of 0.7999, according to this other thread. Although Ofcom are aware of their error, they have neglected to rectify this mess.

And "£0.67" should never be written, as it is in Orange's text messages, "£69.66p"! That's much more confusing!