Part 1 of 2 articles: the second covers cellular data in Europe Last updated: October 2017 To many Americans, staying in touch with a cell phone or tablet while in Europe can seem difficult and expensive. But savvy travelers know it doesn't have to be. Having a phone while you're there can be a major time saver and convenience. This article tells you how to stay in touch and save money. Why don't US cell phones "just work" in Europe? For various reasons, the United States developed and deployed wireless technologies that were incompatible with those deployed in the Rest Of the World, which went with a standard called GSM ("Global System for Mobiles" - one of the reasons why Europeans use the term "mobile" and not "cell phone"). This meant that for many years, the only option for US travelers to Europe was to rent a GSM phone, which was expensive and inconvenient. But all that has changed in the past few years.
In October 2013, T-Mobile introduced a revolutionary new international cell phone capability -- free data and text message roaming in 115 countries, and 20c/min for roaming voice calls. Could this be the best option for travelers looking to save money when in Europe and elsewhere? International Roaming charges are insanely profitable for Verizon and AT&T. How do we know this? Easy: you can go to France or the UK and buy a pre-paid SIM card to get voice calls that cost between 8-15 cents per minute. You're paying the highest price for those calls because you're making no commitment whatsoever. Yet the same voice call, when purchased as international roaming from Verizon or AT&T, would cost you approx 99 cents. AT&T and Verizon have millions of customers who roam Europe making hundreds of millions of calls, so they surely pay a lot less than 8-15 cents. Let's say that call costs them 3 cents/minute, which means AT&T and Verizon make over 95% profit. The costs to interconnect mobile networks are fixed and effectively zero compared to the revenue collected. Everyone in the mobile phone industry knows this, but only T-Mobile has decided to do something about it.