My U.S. cell phone plan works the same-same cost-throughout the 50 states. In the E.U., my German cell phone is cheap to use in Germany, but charges are much higher elsewhere. So I had to buy a Dutch cell phone to use in Holland-even though both are TMobile phones!
I can charge purchases on my German bank card in euros throughout the euro area; but except for a few locations in Spain, Portugal and the U.K., if I take money from an ATM outside Germany, Deutsche Bank charges me $6. So I set up an ING account in Holland, with no charge at ATMs within the country.
Clearly, the euro has reduced transactions costs; but even the euro-area has a long way to go to approximate America’s low monetary and time transaction costs.
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These oligopical companies in the US and Europe will charge as many hidden (junk) fees as they can get away with. High transactions cost mean most people will just pay up. The answer is more competition and a transparent fee structure.
Can’t you just switch SIM cards? You shouldn’t have to buy a new phone. Still a pain though.
One would think the cell tower cooperation of the EU would be more encompassing and complete also.
You have got to be kidding me. Yes, as long as you’re in the admittedly large area of the United States life is good as far as these costs go, but try roaming internationally with your US phone. First of all, many don’t even work because the US has to have its own standards and its own frequencies for international standards. But if it works it’s insanely expensive: 3 – 5 x what Europeans pay for European roaming. Transferring money between European countries costs the same as domestic transfers. To/from the US is again, very expensive. If the people you are dealing with have entered the 21st century, that is, because many still insist on using checks which of course cost even more to process.
The phone plan thing has bothered me a lot ever since I moved to Belgium, especially since I travel a lot for work. Grr! I say.
I think the bank slugs are dependent on your bank though, I haven’t seen charges for using other ATMs outside of Belgium with my bank at all (Fortis).
Netherlands not Holland for a start, unless of course you were referring to the provinces that do make up Holland, only two or three out of twelve.
It also seems a bit strange to compare the US and the EU, but even as you do, there is going to be a substantial lowering of intercharges soon in the EU, following recent work from the DG and EC. Doubtful it will ever be as low as one country, but the termination rates will fall, and hopefully the respective call costs will too.
I’m not sure if it’s fair to compare phone calls and costs at ATMs in the EU with the US. Probably a better comparison would be EU now vs. EU (or Euroland) before the introduction of the Euro.
I remember that my parents (I’m German) had to take lot’s of cash to Italy before we opened a bank account there, because the fees for bank transfers where so high that it just wasn’t worth it. Today, bank transfers inside the Euro are free (not from Germany to the UK, unfortunately). Costs for using ATMs are much lower inside the Euro area, too.
In the last few years, the EU has heavily regulated the “roaming” prices for using your cell in another EU country. Several of my friends cite that as the main advantage of the EU – that it’s cheaper to use their cell in another EU country now. For example, it costs me less to send a text from my German phone to someone in Germany when I’m in Italy than when I’m in Germany.
So it all depends on your point of comparison!
The EU has passed a package of legislation to reduce the cost of roaming throughout the Union, establishing a set of price caps in July 2009 which will be progressively reduced over the coming years. Last month it became mandatory for network operators to establish a $50 cap for customers who have not agreed to roaming charges, to prevent so called ‘bill shock’. Most networks automatically SMS the customer a summary of the tariff when they enter a different roaming area. At $0.43 per minute, even the maximum charge is impressively low compared to roaming costs between the US and Canada or Mexico.
It is worth pointing out that all mobile phones in the EU are on the GSM network and operators are required by law to provide an unlocking service, allowing handsets to be used on any network.
As regards banking, it is largely a case of choosing the right account. Many banks have large networks of ATMs across Europe, either in their own right or as part of a larger network.
We still have some way to come, but the EU is doing a remarkable job of unifying the disparate legal and technical systems of member states.