Cost of using mobile phones abroad slashed by 60% AFTER summer

The EU's move will deliver savings to millions of holidaymakers and business travellers.

The first cuts are not, however, expected to come into effect before September, conveniently missing the summer holidays.

In addition, consumer experts claimed the tariff caps had been watered down too far in the face of opposition from the telecommunications industry, with the British Government in particular recommending less swingeing price cuts.

They also expressed concerns that phone companies could seek to recoup their lost profits by raising charges elsewhere.

The controls were supported by a vote of MEPs in Strasbourg yesterday and final approval is expected to be given at a meeting of the Council of Ministers on June 7.

Currently, UK customers can be charged up to 94p a minute both to make and receive calls from abroad.

These high charges, repeated across the EU, allow the big mobile networks, such as Vodafone, Orange, T-mobile and O2, to make £5.7billion a year.

Those prices will fall in stages over the next three years, after which time the caps will be dropped unless it is felt consumers still need protecting from higher charges.

For the first year of the staggered reductions, the cost of making a call will be capped at 33p a minute, plus VAT, which is higher than the original proposal of 27p.

The cap for receiving calls will be set at 16p a minute, plus VAT, which is far above the 10p first envisaged.

Network operators will also be required to spell out charges more clearly, sending text messages to customers informing them of the call charge when their phone is used in another EU state.

British Trade Minister Margaret Hodge said the final deal was good news for consumers.

She said: "Price cuts on roaming are likely to be in place by late summer.

"This will be great news for holidaymakers using UK mobiles abroad as well as bringing down costs for UK businesses when they travel overseas."

Fiona Hall, Lib-Dem MEP and industry spokesman, was also enthusiastic, saying: "Today we see a clear case of the practical benefits of the European Union.

"Action at an EU level has come to the rescue of consumers, who had been exploited and manipulated by the mobile phone companies for far too long."

However, Euro-sceptic UKIP leader and MEP Nigel Farage dismissed the whole process as "a giant publicity stunt" for the EU.

Consumer experts shared his scepticism about the practical benefits to consumers.

Rob Barnes, a mobile tariff expert at the price comparison website moneysupermarket.com, said: While the new deal looks great ... the EU seems to have backed down when faced with stiff opposition from UK and European operators.

"The average cost of making a mobile call in the UK is between 3p and 10p per minute when on a contract, yet calling home from another EU state will still be up to 33p per minute, plus VAT."

He added: "Costs will be forced down over time, but it seems we are a long way from fair call charges throughout Europe."

Chris Frost, mobile phone expert at price comparison company, uSwitch.com, said the move "may not be all it is cracked up to be".

He said: "This new legislation does not take into account popular holiday and business destinations outside the EU, such as the U.S., Canada, Australia, Switzerland and Asia.

"We could potentially see roaming rates increased in these countries to recoup the fall in revenue."

The European consumer body BEUC complained that the price caps were not low enough and would allow the industry's big-hitters to continue to make huge profits.

A spokesman said: "Unfortunately, the price caps are still too high and are not linked to the actual costs for operators."