PRESSURE on mobile phone operators to cut the cost of calls abroad showed signs of paying off after two companies announced new prices yesterday.

Vodafone said the average cost of its roaming calls in Europe will be 40 per cent lower by next April than last summer, while T-Mobile introduced a 55p flat rate across Europe, the US and Canada.

The moves come only six weeks after the European Commission said it planned to force mobile phone companies to cancel extra charges for calls abroad.

EU Telecoms Commissioner Viviane Reding pledged to act after evidence of roaming charge differences and, in some cases, what were described as "staggering" rates. Orange has already announced plans for at least 25 per cent off roaming rates, while O2 is poised to act after its takeover by Telefonica.

Vodafone said the average cost to its customers for calls in Europe would fall from more than 61p a minute last summer to less than 37.7p a minute next April.

It also planned reciprocal wholesale pricing agreements with other operators in a move the company believed would lead to lower prices across Europe.

Vodafone chief executive Arun Sarin said: "The European Commission and European Parliament have made it clear that they expect to see change.

"Our announcement shows that the market, led by Vodafone, is meeting those expectations by providing what our customers tell us they want."

Vodafone said it proposed to offer rivals an average charge for roaming on its European subsidiary networks of no more than 30.8p a minute, down from an average wholesale rate of 47.9p a minute.

The offer is conditional upon the requesting mobile network operator offering an identical average charge to Vodafone.

T-Mobile also announced major cuts in the cost of its overseas services, with a 55p-a-minute rate to be introduced from June 1 for customers visiting the US and Canada, as well as 29 European countries.

The new European rates are a reduction of 45 per cent on T-Mobile's pre-pay European rates and 54 per cent on its North American pre-pay rates.

T-Mobile UK managing director Jim Hyde said: "For a long time, we have said roaming rates are too high.

"We have not needed regulation to encourage us to cut roaming costs. True mobility means affordable mobility and, at present, too many mobile customers just don't use their phones abroad. That makes no sense for customers and no sense for us."