Technology, media and telecomm

Now O2 plans 40% roaming price cut

O2 has become the latest mobile operator to respond to pressure from the European Commission to reduce roaming charges for people using their phones abroad.

O2 Ireland is to introduce a 59 cent per minute flat rate for making and receiving calls for all its customers in the top 20 European destinations. It says this represents savings of more than 40% over the existing price structures, which ranged from 79 to 99 cent.

O2 Ireland will also extend the 59 cent rate to its customers travelling in the US. These new services will be available from June 1.

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O2 Ireland will also bring in a new 'high roamer' service from next year, aimed at contract customers who travel abroad frequently. For a monthly connection fee, this will allow customers to select countries where calls made to other EU territories will be at prices similar to domestic call rates.

The measures announced today are part of a package unveiled by Telefónica, which bought O2 last year.

Earlier this week, rival Vodafone said it would cut its average European roaming costs by at least 40% by April next year.

Earlier this year the European Commission said it was considering a price cap on wholesale roaming charges for mobile phone calls made within the EU.

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