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Price cap for Intra-EU phone calls and texts comes into force

The provision is part of the European Electronic Communications Code approved in December 2018.

Background: The European Electronic Communications Code, which overhauls the regulatory framework of the telecoms sector in the EU, was approved at the end of 2018. The Code, among other provisions, introduces new measures for consumer protection, related to contracts, switching, and transparency.

What comes into force today? One measure of the Code also introduced retail price regulation on all international calls and SMS texts within the EU. These are capped at €0.19 per minute and €0.06 per text, respectively, as of 15 May 2019. The caps aim to tackle price discrepancies that previously existed between EU countries. On average, the standard price of a fixed or mobile intra-EU call was three times higher than the standard price of a domestic call, and the standard price of an intra-EU SMS message more than twice as expensive as a domestic one, according to a study published by the EC in July 2018. The measure was strongly opposed by operators, which saw it as a return to retail price controls after years of regulation mainly at the wholesale level, especially considering that alternatives to the traditional call and text are increasingly widespread.

Next steps: EU operators will now have to notify consumers of the new price caps. The rules will also apply in Norway, Iceland, and Lichtenstein in the near future. The rules apply to personal customers only, since business customers normally have more attractive offers in place. A Eurobarometer survey of the EC showed that 42% of respondents have contacted someone in another EU country in the last month through call or text, and 20% plan to do so more often after the price controls are in force.