EU roaming charges ban: the loophole and small print you need to know about

Mobile roaming that you thought was free might still cost you, according to new research from Which?

From 15 June anyone in the UK can use their bundled texts, minutes and mobile data in the EU for no extra charge.

All UK providers, no matter how big or small, must adhere to the law. It also applies to customers on both contract and pay-as-you-go.

The law says that you can't be charged for using out-of-bundle data than you would in the UK. 

However, there are exceptions that you need to be aware of. 

Check that small print

You should exercise caution around the word 'anywhere'.

Countries with free roaming vary between different providers, with places like the Channel Islands and Switzerland being covered by some networks, but not others.

There are a lot of question marks around Turkey too. It's a popular destination for UK holidaymakers, but it's not in the EU so it's not included in the regulation. The only network that doesn't apply roaming charges is Vodafone. 

Research from Which? found that Talk Talk charges a rather steep £1.65 to make calls in Turkey while Plusnet and Tesco Mobile charge a hefty £8 per megabyte of data. The average webpage uses around 2MB so those who frequent social media sites will be landed with a huge bill when they return home.  

And just because a country features on Eurovision or the Euros, doesn't mean that it's covered by the new law. The best thing to do is check your phone provider's website to see if your destination is free of roaming charges before you set off.  

Alex Neill, Which? managing director of home products and services said: "Many will reap the benefits of these changes and will no longer be put off by expensive roaming charges. 

"However, it is important that you take a close look at what is or isn’t included in your current mobile deal. Not knowing what’s included in your tariff could lead to some surprising charges on your next bill."

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Using your phone in the UK 

Even though the UK is part of the EU (for now), the new rules only apply to roaming. So calls and texts sent from UK mobiles to the EU will still incur charges.

Which? found that calling Spain from the UK can cost between 9p (Giffgaff) to £1.50 (O2) per minute.

Exceeding your usage limits

Exceeding agreed minutes, texts and data will still be charged in the EU as it would in the UK.

Charges for exceeding minutes range from 3p (Three) to 55p (Vodafone) per minute when calling a UK mobile phone, according to Which?

Text and data charges also vary between providers, so it's worth checking how costs could spiral.

A sneaky loophole for 'unlimited' use

Money SavingExpert claims that small print in the EU rules allows a ‘fair use’ limit to be applied to data allowances. Exceeding this cap could mean your network can charge roaming fees.

Your network could also use the fair use restriction to begin charging you if you use roaming services for calls, texts or data in another EU territory more than you do in the UK over a four-month period.

Those with unlimited or ‘very cheap’ data could be affected by the loophole.

The Body of European Regulators for Electronic Communications (BEREC) guidelines state ‘very cheap’ means costing less than what operators can charge each other for using their networks.

This wholesale rate will be €7.70 per GB from 15 June, which amounts to £6.49 per GB today.

To calculate if your tariff is regarded as ‘very cheap’ you can divide your monthly price, excluding VAT, by your monthly data allowance.

The top SIM-only Plusnet deal, for example, charging £10 a month (£8.33 excluding VAT) with a 5GB data allowance would cost £1.67 per GB – well below the wholesale rate and likely to be a target for the cap.

Money Saving Expert calculates that, if you pay anything less than the equivalent of £7.80 per GB (including VAT), you could be hit by the ‘fair use’ limit loophole.

How will the cap and extra charges be calculated?

To work out what the data cap is likely to be BEREC guidelines says you should divide the cost of your monthly tariff (excluding VAT) by the wholesale rate and multiply that by two.

Using the Plusnet example above that means the firm could enforce a limit of 2.57GB of free roaming, which is just over half of the 5GB allowance you get at home.

If you exceed the free roaming cap, your provider will be allowed to charge you a maximum of €7.70 per GB (the wholesale rate) plus VAT, which amounts to £7.79 today.

However, this charge is set to fall each year. From 1 January 2018 it will be €6/GB + VAT, then €4.5/GB + VAT in 2019, €3.5/GB + VAT in 2020, €3/GB + VAT in 2021 and €2.5/GB + VAT in 2022.

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Will your provider use the loophole?

The loophole in the rules means providers are allowed to set fair use limits and charge extra for data.

EE states on its website: "If your domestic data allowance is greater than 15GB, you will be subject to a fair usage policy of 15GB whilst you are roaming in our Europe Zone: this means you can use a maximum of 15GB from your data allowance while roaming.

While Three says if you have an unlimited data plan there will be a 12GB limit.

Only O2 and Vodafone appear to rule out imposing a cap and extra charges.

O2 said: "In line with the changes set out by the European Commission, making calls, sending texts and using mobile data in any European country will cost our customers the same as it will in the UK."

Vodafone said: "We do not intend to charge... customers for using the data included in their plans when roaming in any our 'Roam Free' destinations after 15 June, as long as they are using it for periodic travel and are not overseas on a semi-permanent or permanent basis."

Whatever happens, the European Commission says customers will be warned about these charges. It states on its website: "If at home you have unlimited mobile data or very cheap mobile data, your operator may apply a safeguard (fair use) limit on data use while roaming.

“If this is the case, the operator will have to inform you in advance about such a limit and have to alert you in case you reach it.

"That safeguard limit will be high enough to cover most, if not all, of your roaming needs. Beyond this threshold, you can continue data roaming, subject to a small charge."

For more information check out the European Commission ‘Roam like at home’ FAQ page.

How to beat shock mobile bills

If you want to avoid a shock bill on holiday you could ask your mobile provider to put a cap on what you pay.

Soon all mobile firms will be required to offer customers this option when they sign up for a monthly contract thanks to an amendment in the Digital Economy Bill, which has already become law.

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