New EU Mobile Roaming Rates Active

The European Union on Monday put into effect new roaming rates for mobile phone users, which could save customers up to 70 percent. However, the new rates won't be automatically applied to customers until September; before then, they are opt-in.

After months of disagreements over what the roaming rates should be capped out, the EU finally passed legislation at the end of May and the measure was approved by the 27-nation bloc in early June. Customers will now be charged no more than 49 cents for making a call while roaming in the EU, and no more than 24 cents to receive a call while roaming.

The new policy took less than a year to go from idea to law, and the industry attempted to have the legislation struck down by claiming it would cut into their profit margins in an already competitive industry. As much as 18 percent of all revenues are gained from roaming charges, according to recent data.

However, lawmakers continued to press forward, and even got more than a dozen nations who voiced opposition to the policy late last year to change their minds. All 27 member states of the EU voted to pass the new roaming caps after agreeing to a middle ground on rates. The EU Parliament proposed rates of no more than 40 cents and 15 cents, while Germany suggested 60 cents and 30 cents.

What's not yet clear is if carriers will raise domestic rates -- as was threatened -- to balance the loss of revenue from roaming. Combined with regulations aimed at lowering long-distance calls between EU countries, and these carriers stand to lose billions of euros, they say.

But the EU isn't listening, instead pointing to excessive roaming rates as a problem for the bloc's citizens. A study found in one case operators were charging as much as 12 euros ($16 USD) for a four-minute call.

Roaming rates are set to drop even further as time goes on. Next year, the cap will fall to 46 cents for outgoing calls and 22 cents for incoming calls. In the third year, it will be lowered to 43 cents and 19 cents. EU regulators have promised to monitor wireless carriers to make sure they are complying with the mandated rates.