O2 introduces new roaming deal

Mobile phone operator O2 has announced a new deal for its contract customers which will reduce the charges they pay making phone calls while abroad.

Mobile phone companies have been under significant pressure from the European Union to reduce the costs of using a mobile phone abroad; often known as roaming charges. A Regulation to cap these charges is expected to be made law next summer.

O2 however has pre-empted any legislation with what it is calling the 'High Roamer' package. Subscribers to this service will be able to receive calls free while overseas and the cost of making calls within the local country and back to the UK will be cheaper.

The service costs an extra £5 a month on top of current contract charges, but a spokesperson for O2 told Computeractive that customers can sign up for just a single month if they wish. Alternatively it can be an ongoing part of the contract.

O2 is considering extending the offer to pre-pay mobile users but has not said when this might happen.

Currently however the service is only available for O2 customers travelling in Spain. Telefonica, the company that owns O2, said it intends to extend the scheme to 35 European countries.

It is not known if the service will comply with future legislation, but David Massey from O2 said that the mobile phone companies still believe that competition is the best way for prices to drop and regulation is not needed.