Mobile operators expect Maltese travellers to make more calls and increase data usage now that the new roaming rates in line with EU directives came into force on July 1 - just in time for the summer holidays.
Operators across Europe originally resisted the new caps on mobile roaming services within the EU, fearing for their profitability, but the consumer won in the end.
"The reduction in roaming rates has had a significant impact on the revenues of all mobile operators, including Go," a company spokesman told The Sunday Times.
"However, the expectation is that the lowering of tariffs will mean that more travellers will make use of mobile services when abroad, and the usage is expected to increase and make up, in part, for the shortfall of roaming revenues. All this is mainly subject to the volume of tourists visiting Malta, and Maltese travelling abroad."
He added that most pre-paid Go customers traditionally opted for text messaging rather than voice calls when roaming abroad, and pointed out that Go was in favour of the EU's downward regulation of wholesale data roaming costs.
"Costs incurred by Go with its various EU data roaming partners together with the most popular destinations were taken into consideration in offering the lowest retail data roaming rates available within the Maltese mobile competitive market," he emphasised.
Vodafone would not comment on the impact on profitability, the group being a listed company, but a spokesman said the reductions would give consumers the opportunity to use their mobile more while overseas.
"Data usage appeals to a smaller segment of roaming customers. Nonetheless, we hope customers find more value using these products at the revised rates," he said, adding that Vodafone expected more roaming revenue from incoming rather than outgoing travellers.
Since its launch in February, Melita Mobile has prided itself on lower tariffs.
"Now Melita Mobile has introduced the cheapest mobile rates for EU roaming," a spokesman said. "The company decided to go one step further than the mandatory EU regulations by setting its new roaming tariffs a year ahead of EU requirements and other local mobile operators. Effectively, we have implemented 2010 tariffs in 2009.
"Profitability and usage are linked and one would have to wait and see the impact of these reduced tariffs on usage patterns before commenting on revenue."
Go explained the company had agreements with a minimum two 3G networks in each EU country, ensuring fast internet and data roaming. Mobile operators charge Go wholesale rates for traffic generated on their network by Go customers.
Vodafone Malta was the first to introduce Vodafone Passport a while back, a tariff targeting customers making long calls outside the country, with improved rates on calls and data, under the group's strategy to provide more value to customers "long before the EU directive".
Melita uses an international roaming hub through an agreement with Telecom Italia: reductions in roaming charges are in line with a reduction in the costs of using this hub, the company pointed out.
It has been a long road to roaming rates reform.
"At a time when we have seen in Europe so much progress in other telecommunications services, the cost of using your mobile phone abroad is hard to believe," Information and Media Commissioner Viviane Reding said in 2005 when the crusade began. Former Labour MEP Joseph Muscat also championed consumer protection on the roaming issue.
Ms Reding was happier on July 1, heralding the end of the "roaming rip-off" with the cost of calls driven down by 70 per cent in four years.
"In times of crisis, policy makers need to give a helping hand to consumers so that they get better value for their money and industry benefits from increased consumer confidence," she said.
Although the roaming texting rate charged by Go, Vodafone and Melita is now just €0.13 - the maximum rate set by the EU - calls and internet surfing should come with a shorter guilt trip. Calls are now charged at between €0.47 and €0.51 for the first 30 seconds and then charged per second, depending which operator travellers are subscribed to.
Go and Melita do not charge for call set-up. The incoming call charge has also been slashed and ranges from €0.18 per minute to €0.70 per 10 minutes depending on operator and tariff plan. Data rates start at €0.0024 per KB.
By June 30 next year, the European Commission is to report to the European Parliament and European Council on the developments of the new rates' first year. Developments in wholesale and retail prices, domestic prices, and the availability of alternatives to roaming (like Wifi services) will be examined. After that, the Commission will have to review the regulation and assess whether further proposals are necessary by June 2011 or whether to allow the regulation to expire in June 2012.
Meanwhile, there is more good news in store for Maltese consumers. Melita Mobile said it is in final stages of discussions with suppliers and will be announcing "substantially cheaper" data roaming charges and international mobile call rates in the next few days.
Vodafone too is looking to reach agreements with overseas operators in Libya, the US and Australia "to offer more advantageous rates", after the company recently revised rates and zones for non-EU destinations: price points were reduced from 86 to 16.