Ref: 18/02
Date: 4 April 2002

Many consumers are still unaware of the cost of using their mobile phone abroad, according to new research published today by Oftel.

Key findings of the research that Oftel carried out with the Republic of Ireland regulator ODTR are:

• nearly half of UK consumers with a pre-pay mobile phone are unaware that they can be charged for incoming calls – at up to £1.50 per minute – when using their phone abroad;

• over 80 per cent of consumers do not believe that the prices for using their mobile phone abroad represent value for money; and

• less than half of consumers have tried to reduce their mobile bills when abroad, for example by using text messages or switching from a pre-pay to post-pay service, despite the potential to make savings of well over 50 per cent.

David Edmonds, Director General of Telecommunications, said:

"Most people would probably expect to pay a bit more for using their mobile phone abroad. But the research highlights that few people are aware of just how much more it can cost. Or that they could make savings by taking some simple steps.

"For example, our joint research with ODTR shows that UK travellers to the Republic of Ireland could save over 50 per cent on their roaming costs by switching from pre-pay to contract tariff, although savings will depend on individual consumers’ use of their mobiles

"For regular travellers, buying an Irish SIM card for use while in Ireland could save over 50 per cent on roaming charges for contract customers or over 70 per cent for pre-pay customers.

"Selecting a different Irish network to roam on is another option: the difference between the cheapest and most expensive network can be up to 18 per cent."

David Edmonds said that Oftel has published advice on how consumers can reduce their phone bill when using their mobile phone abroad:

"Wherever your destination, there may be ways of saving money while you are using your phone abroad.

"Think twice before making a call if you can send a quick message instead as sending a text message is cheaper than making a one-minute call.

"Think about changing from pre-pay to contract. If you are a regular traveller, the money you save on cheaper calls may even pay for the line rental charge.

"Check with your network to see if it offers an international traveller service, which gives you cheaper calls abroad for additional line rental and may offer a good deal for heavy users.

"And before you travel, check with your network so you know exactly how much you will be charged for using your phone.

Commenting on the joint project with the Irish regulator ODTR, David Edmonds said:

"Oftel has worked together with the Irish regulator, ODTR, and I am pleased to see the start of a working relationship that will bring benefits to both regulators in the future.

"This is an example of the kind co-operation that will become increasingly important under the new European Directives.

"ODTR will be publishing research and advice for consumers in the Republic of Ireland."

Notes to editors

1 Mobile international roaming research reports is published on Oftel’s website at www.oftel.gov.uk/publications/research/2002/odtr0402.htm. Getting the best deal when using your mobile phone abroad is published on Oftel’s website at www.oftel.gov.uk/publications/mobile/2002/roam0402.htm. Paper copies are available to the press from Oftel’s Press Office on 020 7634 8991 and to the public from Oftel’s Research and Information Unit on 020 7634 8761.

2 ODTR has published a separate report for the Irish market which can be found at www.odtr.ie.

3 The reports published today are not intended to be a quality of service report and should not be seen as a recommended buyer’s guide to mobile services in the UK and Ireland. Any reference to a company should not be seen as endorsing that company or the services it provides.

4 On 11 July 2001, European Commission inspectors and officials from national competition authorities carried out simultaneous unannounced inspections at the premises of nine European mobile telephony operators in the UK and Germany.

These inspections were part of the follow-up to the EU-wide sector inquiry into mobile roaming that the Commission launched in January 2000.

The Commission has stated that there are serious competition concerns regarding pricing practices for mobile roaming that warrant further investigations, in particular in the UK and Germany.