T-Mobile makes first moves to cut International Roaming Rates

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From 1st June T-Mobile will slash their roaming rates for both pay as you go and contract customers

In what is sure to spark another price war, much like the introduction of their Flext tariff, T-Mobile have launched an assault of expensive roaming charges.

From June 1st 2006 T-Mobile will offer customers on their pay as you go schemes and contract mobile phone tariffs the ability to call back to the UK from a range of European countries, the USA and Canada for only 55p. This represents reductions of 45% and 54% on their existing pre-pay rates.

Currently the USA and Canada are two of the most expensive countries in which to use your mobile phone for roaming, however T-Mobile have a strong infrastructure on these countries from their US based arm which allows them to make these large reductions. It will be interesting to see if other companies are willing or able to follow suit in the US and Canadian markets.

In what has likely been spurred by T-Mobile's announcement, Vodafone have also announced that they will be reducing roaming rates in Europe by up to 40%, however they are only committing to these price reductions by April 2007.

It seems somewhat that Vodafone have been caught on the hop by T-Mobiles plans to shake up the roaming market and have rushed an announcement out to placate their customers who have recently had their interests piqued by the rulings from EU Councillor Viviane Reding regarding the high cost of roaming. Vodafone still intend to fight the legal implications of the EU report.