PARLIAMENTARY DEBATE
Draft Trade (Mobile Roaming) (Amendment) Regulations 2026 - 8 July 2026 (Commons/General Committees)

I beg to move,

That the Committee has considered the draft Trade (Mobile Roaming) (Amendment) Regulations 2026.

It is great to see a fellow Edinburgher in the Chair, Ms Jardine. [Interruption.] I will not divide the Committee on the pronunciation of “Jardine”.

The draft regulations are required in order to amend the Trade (Mobile Roaming) Regulations 2023 by updating the international mobile roaming wholesale rates that they set. Wholesale rates are those that mobile operators charge other mobile operators, as opposed to retail customers. The amendments will give effect in domestic law to a November 2025 decision of the EEA EFTA-UK free trade agreement joint committee, the governing body of the agreement, on which each party has a seat. I note, however, that one EEA EFTA member, Liechtenstein, has opted out of the international mobile roaming provisions in the free trade agreement.

The amendments to the international mobile roaming wholesale rates are being made to ensure that they continue to reflect current international benchmarks, which reflect market conditions. This is consistent with and necessary under the terms of the free trade agreement.

Let me provide some background for the Committee. In 2021, the UK and the EEA EFTA signed a free trade agreement. Its core terms included provisions on industrial goods, digital trade, services and investment and, of course, fisheries and agriculture. Under digital trade, in a telecoms chapter, it contained provisions on international mobile roaming. These provisions set a wholesale cap, which limits what mobile operators can charge each other. In 2023, the UK introduced the Trade (Mobile Roaming) Regulations to implement these provisions in UK legislation. The draft regulations will amend those regulations.

As per the free trade agreement, the Trade (Mobile Roaming) Regulations covered wholesale charges only. The free trade agreement contains a review clause, under which the wholesale rates should be reviewed by all affected parties every two years

“with a view to determining whether those rates are still appropriate”.

The UK is one of the affected parties, along with Norway and Iceland.

The rate set under the agreement has now diverged from the “relevant international benchmarks” that the agreement states should be considered. The benchmark relevant to EEA EFTA-UK is the European Union-set international mobile roaming wholesale rate, called the Euro rate. EEA EFTA adheres to the Euro rate as part of its access to the EU single market. The UK adhered to the Euro rate until 2021, with the end of the Brexit transition period at the end of 2020. The EU benchmark is based on the principle that the wholesale cap must be high enough to allow operators fully to recover reasonably incurred costs involved in building, maintaining and operating their networks. This principle, based on market conditions, is supported by the United Kingdom.

In 2025, Norway, supported by Iceland, requested a move to reflect the Euro rate. The reason was that the wholesale cap in the UK-EEA EFTA agreement should reflect international benchmarks and current market conditions. Ministers agreed to proceed with legislation for these new rates to demonstrate the UK’s willingness to align with the provisions of the free trade agreement. In November 2025, the governing body of the agreement, the UK-EEA EFTA joint committee, made Decision No. 1/2025, which agreed that the wholesale rates should be changed. The draft regulations will amend the Trade (Mobile Roaming) Regulations 2023 to give effect in domestic law to the commitments that the UK has made to the joint committee.

I should start asking questions, to see whether people are still keeping up with all this. I think I am.

The draft regulations are strictly about amending the wholesale rate set out in the Trade (Mobile Roaming) Regulations. It is a very technical amendment. However, I believe that it would be helpful to conclude by setting the context for the wholesale cap in the free trade agreement.

What reassurance do we have that these savings will be passed on to customers, rather than just going towards the companies’ bottom line?

That is an incredibly good question. That is why we are making the draft regulations, because the wholesale rates, or the Euro rates, are much lower than the rates currently in operation. For example, a voice call, which is €0.032, will go down to €0.019; an SMS, which is €0.01, will go down to €0.003; and data, which is €2.50 per gigabyte, will go down to €1.30 per gigabyte. The Euro rate is €1 per gigabyte. One would hope that if wholesale prices are being lowered, the savings will be passed on to consumers, as I am sure the Committee agrees they should be. Although the hon. Gentleman’s question was not strictly about the draft regulations, it was a great question to which I am delighted to have the answer.

The Minister talks about the price reductions for the three countries. By my maths, that is a 70% reduction in the price of sending SMS texts, which is incredibly welcome, although I am not sure who sends those any more. Is he working on similar agreements with other countries not covered by the changes that we are making today?

That is a good question. Actually, yes. This is purely about the EEA EFTA-UK agreement countries, Norway, Iceland and Liechtenstein, although Liechtenstein is outside it at the moment because of its relationship with the European Union. On the prices, we are looking to align with the Euro rate, which the European Union uses, so the answer to my hon. Friend’s question, by default of the technicalities of the measure, is yes.

I can confirm that surcharge-free roaming has not been delivered for all UK travellers to Norway and Iceland. Mobile network operators EE and Three continue to surcharge their customers roaming in Norway and Iceland, so they should be passing that on. It is welcome that Vodafone removed the surcharges as a result of the change, and VMO2 did not reintroduce roaming charges to the EU and EEA EFTA post Brexit—post the transition period, in any case.

The Government have continued to review options for delivering surcharge-free roaming for UK travellers to Norway and Iceland, in line with the aspirations of the free trade agreement. I fully agree with hon. Members that if there are wholesale rate savings, companies that have not yet taken off surcharging for Norway and Iceland should do so. I stress that the draft regulations are strictly about amending the wholesale rates contained in the Trade (Mobile Roaming) Regulations and fulfilling the commitments that the UK made under the international treaty. I commend the draft regulations to the Committee.

It is a pleasure to serve under your chairmanship, Ms Jardine. I have three questions about this statutory instrument. The first is a request for clarity from the Minister, because I was a bit confused by some of his comments about the caps that are being updated by this SI. On my reading of the explanatory memorandum, the reciprocal arrangements with caps of EEA operators in Norway were already below the proposed caps, in fact quite substantially so: about 50% on voice, between 33% and 66% on SMS, and between 50% on data. That demonstrates to me the success of the free market.

The impact assessment says very clearly that the impact of this SI is zero, given that the market has already found a solution. Will the Minister clarify that a bit further in case I have read that wrong? Will he celebrate the impact of the free market? Will he also update the House on the work that is being done to reduce barriers to other roaming charges, particularly in jurisdictions such as Canada, the US and Mexico, which are of particular interest to many of our citizens at this moment in time?

I see that the agreement was made in November 2025. Why has it taken seven months to bring this SI to us? Is that indicative of the performance of the Department for Science, Innovation and Technology in turning around SIs? Finally, given that the impact assessment says that this SI has no impact, can the Minister tell us the cost of drawing it up and putting it in front of us today?

The shadow Minister is correct that we should be doing things at a greater pace, but I disagree with him about the value of the wholesale rates. The voice call rate is already higher. As I said to the hon. Member for Bromley and Biggin Hill, it is going from €0.032 to €0.019, and SMS is going from €0.01 to €0.003. That is a reduction. Data is going from €2.50 to €1.30 per gigabyte, and then €1 on the Euro rate. That is about formalising in the SI what was in the EEA EFTA agreement to reflect the wholesale prices at these international benchmarks. The international benchmark used by EFTA in this agreement is the Euro rate, which is the rate that will come into effect for the wholesale charges. I hope that that answers the shadow Minister’s question.

The reason that there is no impact on consumers is that this measure does not directly affect consumers at this moment in time. As I say, some mobile operators have already reduced their surcharges regardless. In fact, VMO2 did not reintroduce any roaming surcharges at all to EEA EFTA countries post the Brexit transition period. Operators EE and Three continue to surcharge their customers roaming in Norway and Iceland, and Vodafone removed its surcharges as a result of the agreement, so this instrument will have no impact on consumer prices, because it is a wholesale issue, not a consumer issue.

On the time and the cost that it has taken to get here, I may have to come back to the shadow Minister. The cost of bringing this SI to the House is the cost of doing parliamentary democracy. It is a price worth paying for the hon. Gentleman to have his voice heard.

It is a pleasure to serve under your chairmanship, Ms Jardine. The Liberal Democrats support this SI. This is about working with EEA and EFTA, and it is a reminder of the benefits to consumers when we work together with our European partners, whether that is working on our phone bills or on defence. Does the Minister agree, in relation to the Liberal Democrats’ proposals for a new growth and defence partnership with the EU, looking at the single market and a new customs union, that this is a strong reminder that working together would make us richer, safer and stronger?

It is a pleasure to serve under your chairmanship, Ms Jardine. I was recently in Iceland and have just been reviewing the text messages I received there. I am a customer of EE, which the Minister mentioned; I was told that I could enjoy up to 14 gigabytes of data abroad this month, in line with its fair usage policy. I take the Minister’s point that this is about wholesale charges, but as the hon. Member for Runnymede and Weybridge made clear, the consumer experience is already ahead of the wholesale cost in many ways. Although this change is incredibly welcome, I do not think that it will necessarily have a transformative effect on consumers, who have already experienced many of the benefits that the Minister talked about.

I wonder whether this SI is indicative of a broader ambition to do more on roaming charges, and not just with EEA EFTA countries. I would like to hear a little more, if possible, about the Liechtenstein challenge, and about whether this approach may represent a model for wider expansion across the European Union.

Let me start by answering the hon. Member for Surrey Heath. It will depend on which package he is on, of course. I have a worldwide roaming package, which means that I take my package with me wherever I go, but that is the package that I purchased; it is not necessarily open to everyone who has a mobile phone.

On the challenge with Canada, Mexico and the US, there will be many fans over there at the moment—maybe not many Scotland fans, but a lot of England fans. Some will be racking up huge bills, while some will not; it will depend on which package they are on. That is why I am very clear that this is about wholesale prices and implementing the provisions in the agreement, not about the charges to the consumer. That explains my answer to the hon. Member for Bromley and Biggin Hill about the consequences and whether we should be passing the savings on. The answer to that is, of course, yes, but they do not need to be passed on to the hon. Member for Surrey Heath, because he has a package already and is paying in other ways to cover these kinds of issue.

I say to the Liberal Democrat spokesperson, the hon. Member for Harpenden and Berkhamsted, that this Government’s manifesto was perfectly clear about what we want to achieve with the EU. The current Prime Minister has been very clear about resetting the relationship with the European Union. The EU-UK summit agreement from last May is coming into effect; that is deepening our relationship in a whole host of ways, from defence to trade in goods, digital and things like EU touring, which the Department for Culture, Media and Sport looks after closely. That will be renewed every year; there is a summit every year now, deepening that relationship even further.

The direction of travel from this Government is very clearly to get closer to our allies in the European Union. The Prime Minister has led the charge on defence spending through NATO and with our European partners, and that has been recognised, particularly by the NATO Secretary-General. There is no doubt at all that we are deepening that relationship, because it is right for our economy, it is right for our people and it is right for issues like this.

Question put and agreed to.