'Rip-off' cost of text messages made abroad to be slashed by 70% after EU crackdown

The cost of sending a text message home while in other parts of Europe could be slashed by more than 70 per cent.

Britons who use their phone while in Spain, for instance, would pay only 9p per text - instead of up to 40p.

The cuts have been proposed by EU Telecoms commissioner Viviane Reding, who accused mobile phone networks of failing to offer a fair deal.

In October, she will put forward legal rules for a cap on the charges.

Her findings would have to be approved by ministers of the EU member states before becoming law, a process which could take several months.

Last summer, Miss Reding forced the industry to make big reductions in charges for using mobiles for voice calls when 'roaming' in other EU states.

Now she is moving on to text messages and data services, such as accessing e-mails or music and video downloads, which can generate extortionate bills when outside a user's home country.

Typically the cost of sending a text message back home while overseas can be 20 times more expensive than sending the same message within the UK.

A study commissioned by the Danish government suggested the true cost to the industry is as little as 4.2 euro cents - around 3p - per text.

Commissioner Reding said mobile phone operators had failed to answer her pleas for voluntary cuts in roaming fees for text messages. Consequently, she will put forward rules for a legal cap in October.

She also warned of action to cut the cost of mobile phone internet access saying these services are currently 'heavily overpriced'.

'Roaming charges have already drained the wallets of mobile customers too much, especially the 77per cent of young people who send texts while using their mobile abroad.'  she said.

'EU citizens should be free to text across borders without being ripped off.'

The National Consumer Council welcomed the plan. Its telecoms expert, Anna Fielder, said: 'For too long mobile phone operators have been overcharging holiday makers and travellers. 

'Costs for sending texts can be up to 20 times higher than here in the UK and downloading data can be four to six times higher – clearly this is unacceptable.

'If operators are unwilling to lower costs, then we would support tough measures to ensure consumers get a fairer deal. 

'We would like to see an EU-wide roaming package which spells out what consumers should expect to pay when using their phone abroad to download information, make a call or send a text.'

Fiona  Hall MEP, Lib-Dem industry spokesman, said: '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.'

Telecoms companies claim they are bringing down prices gradually as more people use data roaming services - and say this is a new market where regulation would be a bad idea.

Telefonica's O2 says it has reduced data roaming prices by more than 40per cent since April, Vodafone says it has cut the price per megabyte by 45 percent, and France Telecom's Orange promises it will soon offer cuts of up to 90per cent on standard data roaming prices.

In the past, the British Government has sided with the industry to try and water down attempts to cap international mobile phone charges. However, the UK regulator, Ofcom, has been lobbying for price cuts.

The commissioner's proposals would have to be approved by ministers of the EU member states before becoming law, a process which could take several months.