New international roaming rules to protect consumers
Announcement posted by Compare Mobile Plans 23 Aug 2012
Proposed rules to alert consumers of high roaming costs
Australians using their mobile phone overseas will receive be alerted by text message to the high costs of roaming under proposed new rules.
Communications Minister Stephen Conroy has announced regulation to protect consumers from high bills generated from international roaming fees, following complaints to the Telecommunication Industry Ombudsman (TIO) from mobile users hit with thousands of dollars worth of charges on an overseas trip.
Australian mobile phone companies have agreements with overseas networks allowing their customers to make calls while abroad. Although convenient, using another network overseas attracts much higher rates than at home. Roaming charges are higher for Australians than for other countries due to a lack of regulation and in 2011, an OECD report named Australia as was one of the most expensive developed countries in the world for mobile roaming charges.
The popularity of smartphones has made the problem worse, as using data abroad is particularly expensive. Data roaming abroad costs an average of $15 per MB, which means using Google Maps to navigate from the hotel to the airport for an hour could rack up a bill of over $100.
The new proposals will see customers receiving a text explaining the cost of making a call, as well as sending a text or email.
The Government may also go further by limiting how much customers can spend on roaming, or by reducing the cost.
Overseas roaming costs
Compare Mobile Plans has analysed the cost of roaming, and found countries are split into 5 zones by most providers. Zones 4 and 5 have the majority of international destinations in it, although Zone 3 contains much of continental Europe, the UK, and Hong Kong, as well as the USA. Greece, Singapore, and Vietnam is in Zone 2 along with others, and Mexico, Egypt and Ethiopia are in Zone 5. Countries can be in different zones depending on provider so it is recommended that customers check with their own network before leaving.
Different providers have different advantages. Vodafone has quite expensive roaming rates for calls, but are extremely cheap for receiving calls ($1.00 per minute in all zones), so it is ideal if you want to be contactable but do not plan on making any calls. If you're heading to the UK, the US, or New Zealand, Dodo and Optus are the cheapest options.
Data costs
Data is very expensive no matter where you are going. Rates for both data and SMS are generally the same regardless of what zone you're in, and while SMS can be quite reasonable, data is extremely expensive. The average cost is around $15 per MB, nearly 300 times the cost of a MB at home. TPG and Vodafone offer the cheapest rates with around $10.24 per MB. As an example, checking Google Maps for around 10 minutes can use 2-3MB of data, generating a $30 bill.
You can turn off data roaming on your phone by going into the settings and still access the internet over WiFi, which is free in some places. This prevents your phone from switching to 3G without your knowledge and using data.
If it's accessing the internet while you're overseas is essential, look into data roaming packs from your provider. Prices are still very expensive, from $20 to $40 for only 10-15MB, but this is cheaper than standard international roaming (where you'd be looking at around $100 for 10MB). Vodafone offers prepaid New Zealand Roaming Packs which are more reasonably priced, starting at $25 for 100MB.
Stick to light options if you must use data overseas. 10-15MB should be enough to check your emails (although avoid downloading or sending pictures and music), light web browsing (e.g. Googling the location of a hotel), and simple app usage (again, avoid picture heavy apps). Don't try to use YouTube or other video streaming services, and don't even think about downloading something!
Buy a local SIM
Simply picking up a prepaid SIM in whatever country you land in is much cheaper than international roaming. Many airports have vending machines or retailers selling SIM cards from local networks, so you can buy one as soon as you land.
You could also call ahead to your hotel, or ask your travel agent to recommend a local SIM card. You could even buy one in advance and have it waiting for you at your accommodation.
Ensure your smartphone is unlocked from your Australian carrier before going overseas. You can do this simply by calling your provider and informing them that you're going overseas, and they'll be able to walk you through the process of unlocking the phone. Make sure you do this a couple of weeks in advance, as the process is not always immediate.
Communications Minister Stephen Conroy has announced regulation to protect consumers from high bills generated from international roaming fees, following complaints to the Telecommunication Industry Ombudsman (TIO) from mobile users hit with thousands of dollars worth of charges on an overseas trip.
Australian mobile phone companies have agreements with overseas networks allowing their customers to make calls while abroad. Although convenient, using another network overseas attracts much higher rates than at home. Roaming charges are higher for Australians than for other countries due to a lack of regulation and in 2011, an OECD report named Australia as was one of the most expensive developed countries in the world for mobile roaming charges.
The popularity of smartphones has made the problem worse, as using data abroad is particularly expensive. Data roaming abroad costs an average of $15 per MB, which means using Google Maps to navigate from the hotel to the airport for an hour could rack up a bill of over $100.
The new proposals will see customers receiving a text explaining the cost of making a call, as well as sending a text or email.
The Government may also go further by limiting how much customers can spend on roaming, or by reducing the cost.
Overseas roaming costs
Compare Mobile Plans has analysed the cost of roaming, and found countries are split into 5 zones by most providers. Zones 4 and 5 have the majority of international destinations in it, although Zone 3 contains much of continental Europe, the UK, and Hong Kong, as well as the USA. Greece, Singapore, and Vietnam is in Zone 2 along with others, and Mexico, Egypt and Ethiopia are in Zone 5. Countries can be in different zones depending on provider so it is recommended that customers check with their own network before leaving.
Different providers have different advantages. Vodafone has quite expensive roaming rates for calls, but are extremely cheap for receiving calls ($1.00 per minute in all zones), so it is ideal if you want to be contactable but do not plan on making any calls. If you're heading to the UK, the US, or New Zealand, Dodo and Optus are the cheapest options.
Data costs
Data is very expensive no matter where you are going. Rates for both data and SMS are generally the same regardless of what zone you're in, and while SMS can be quite reasonable, data is extremely expensive. The average cost is around $15 per MB, nearly 300 times the cost of a MB at home. TPG and Vodafone offer the cheapest rates with around $10.24 per MB. As an example, checking Google Maps for around 10 minutes can use 2-3MB of data, generating a $30 bill.
You can turn off data roaming on your phone by going into the settings and still access the internet over WiFi, which is free in some places. This prevents your phone from switching to 3G without your knowledge and using data.
If it's accessing the internet while you're overseas is essential, look into data roaming packs from your provider. Prices are still very expensive, from $20 to $40 for only 10-15MB, but this is cheaper than standard international roaming (where you'd be looking at around $100 for 10MB). Vodafone offers prepaid New Zealand Roaming Packs which are more reasonably priced, starting at $25 for 100MB.
Stick to light options if you must use data overseas. 10-15MB should be enough to check your emails (although avoid downloading or sending pictures and music), light web browsing (e.g. Googling the location of a hotel), and simple app usage (again, avoid picture heavy apps). Don't try to use YouTube or other video streaming services, and don't even think about downloading something!
Buy a local SIM
Simply picking up a prepaid SIM in whatever country you land in is much cheaper than international roaming. Many airports have vending machines or retailers selling SIM cards from local networks, so you can buy one as soon as you land.
You could also call ahead to your hotel, or ask your travel agent to recommend a local SIM card. You could even buy one in advance and have it waiting for you at your accommodation.
Ensure your smartphone is unlocked from your Australian carrier before going overseas. You can do this simply by calling your provider and informing them that you're going overseas, and they'll be able to walk you through the process of unlocking the phone. Make sure you do this a couple of weeks in advance, as the process is not always immediate.