EU Data Roaming Caps to come into effect 1st July - Will it drive down prices?

So the European Union has decided to act on the farce that is Data Roaming within the EU Zone, and in it's first stage, putting an initial cap of €50 (~£44) on the maximum data bill that a user can get via a Mobile Phone - with people being able to set a custom limit if needed.

The €50/~£44 cap goes into effect on 1st July for non preset limits, with a warning going off once you hit 80% of the data allocation.

Note that this is only within the EU. Go beyond it's borders and once again - you're on your own with the massively stupid data bills that are possible to rack up

EU Commisioner spokesman Jonathan Todd indicated this might reduce the cost of roaming within the EU

"This measure is likely to bring down the cost of data roaming, because if people stick to their own cash limits and find they don't get much access to the internet for their money, the tendency will be to bring down prices so you get more surfing for your money," he said.

It depends to me if the mobile phone firm choose to remain greedy. Alas mobile firms still think to themselves as operators and not providers, and thus will still attempt to stick whatever they feel like on a consumer the moment they move out their home markets (for example, O2-UK Charge an idiot £3/Mb within the EU, £6 everywhere else - whilst Orange charge an idiot are at £3/£7.50).

Only by force have operators been forced to reduce prices in the past - I have this feeling that it will again take another slap by the EU for Mobile Operators to get their hinds in gear....

A salutory lesson on Data Roaming - 2.5GB for £8000!

For the masses out there who have brought 3G USB Modems (or as some call then "Dongles"), it's time for some sobering advice regarding them.

William Harrison signed up for a 3GB/month Contract with Orange UK for a Mobile Data Plan - so he would have access to the Internet whilst on the move and during his internship in Paris.

Now if was using his dongle in the UK,& 3GB would be plenty for surfing or Skype'ing. However, the moment you pass beyond the borders of the UK - International Roaming rules apply.

This lead to one small problem - a first month bill of £6101.56.  William contacted Orange UK to block the dongle, which he did successfully - after racking up another charge of £1547.21 - taking his bill to £7648.77

I repeat in large letters:

£7648.77
that's about 2.5GB of data!

That's painful in ANY Currency. Orange has agreed to halve William Harrison's bill, and has allowed two years for the debt to be repaid. That's still a lot of dough in anyone's book

Remember that EU roaming charges can vary, and can be expensive depending on the provider.

£3.00 - Orange UK
£3.00 - O2 UK
£1.50 - T-Mobile UK
£1.25 - Three
£5.00 - Virgin Media
£10.00 - Vodafone UK (per 50MB, charged per part)
 
These are EU Prices. Going out of the EU and you can double these prices without sneezing.


SO A WARNING: Unless your contract has provision or an agreement for out of country roaming, expect data bills to be BIG. It'll work out cheaper to find a WiFi HotSpot than to use the dongle. An alternative (which IS viable in the EU mainly) is to pick up a dongle and a Pay-As-You-Go plan when you arrive at your destination.


Links:

The Observer: http://www.guardian.co.uk/money/2010/feb/21/broadband-dongle-roaming-bill-shock
The Register: http://www.reghardware.co.uk/2010/02/22/student_hit_with_huge_roaming_bill/