IRISH holiday makers who use their mobiles when travelling abroad could be in for cheaper calls following an EU decision on roaming charges yesterday.

Telecoms ministers from the 25 EU countries, including the Communications Minister Noel Dempsey, have supported a European Commission plan to regulate roaming charges, which are accumulated when people make calls abroad.

The Commission has accused mobile phone operators of reaping profit margins of between 300pc and 500pc on the calls.

EU Commissioner Charlie McCreevy had argued against such moves, but Commissioner Viviane Reding secured the support of President Manuel Barosso and most of the Commission.

Irish mobile phone users are hit with some of the highest rates in Europe when they use their phones in the EU. Almost 85pc of Irish people have a mobile phone, with the average Irish monthly bill reaching €47.20, the highest in the EU. The average among our European partners is only €30.67, with Germans paying €22.84.

While the ministers agreed on regulation, they said that capping prices directly should be a last resort.

Commissioner Reding said she wanted a cap on retail tariffs but this had been opposed by the mobile phone operators, who argued that they had already cut tariffs and that draconian regulation would slow investment.

Mr Dempsey said Ireland strongly supported the Commission proposal to impose the price ceilings. "We think it would be a very positive signal to citizens that the EU meant something, particularly young people because they are the ones most affected by roaming," he said.

The minister added that Ireland had pointed out at the meeting that it had already managed to resolve the issue of roaming between Ireland, Britain and Northern Ireland.

He said he believed the incoming German EU Presidency would continue to push the issue and that it would be resolved by the middle of next year.