The European commission has ordered mobile telecommunictions companies to cap the cost of making and receiving calls while abroad. From today customers should pay no more than 32p a minute for calls made – a 3p reduction – and 10p a minute for calls received while within the EU. However there are fears that firms are passing on the EU costs to UK consumers in the form of domestic price rises, with Orange and Vodafone introducing increases of up to 66% in pay as you go costs for calls and text. The move is part of the commission's goal to narrow the gap between domestic and overseas call rates to virtually nothing by 2015. New regulation on data pricing and competition practices is to be announced on Tuesday 5 July. Compulsory maximum roaming rates were first imposed on mobile network operators four years ago to tackle what the commission called the "roaming rip-off" – network operators were said to be making profits of more than 200% for mobile calls made while in another EU country, and 300% or 400% for calls received. Today's additional price drop means mobile roaming charges are about 75% cheaper on average than they were six years ago when the commission first urged operators to cut their rates voluntarily.

Existing rules to prevent bill shock for those using the internet via a mobile phone while abroad remain: operators must apply an automatic €50 (?45) cut-off limit on accounts unless the customer explicitly agrees otherwise. Monique Goyens, director general of the European Consumers' Organisation, said: "These new caps are slowly chipping away at the extortionate roaming prices some telecoms operators have been driving for years. These high prices need to be brought down so European phone owners' confidence can rise. "A remarkable 72% of travellers still limit their roaming calls because of high charges. Such pricing is a denial of the very idea of the EU single market and free movement. It's logical legislation." Nick Wright of billmonitor said: "While any reduction in extortionate roaming prices are of course welcome, the latest price cuts will leave few regular roaming customers rushing to make calls while on their summer holiday. "The 10% cut in outbound roaming call prices will certainly help, but as the 40% of us who make roaming calls well know, it will be a drop in the ocean relative to already very high costs."