AUSTRALIA and New Zealand have teamed up to protect travellers from excessive mobile phone "roaming" fees.

Communications Minister Stephen Conroy and New Zealand Communications Minister Amy Adams this morning release a draft report that looks at ways to cut charges and improve transparency.

"The draft report makes it clear that telecommunications companies are stinging consumers on trans-Tasman mobile roaming charges and that their profit margins are excessive," Senator Conroy said.

The findings have already prompted the federal government to protect Australians travelling further abroad.

The Australian Communications and Media Authority (ACMA) has been told to create an industry standard for mobile roaming so charges for call, text messages, internet surfing are transparent.

Senator Conroy said the standard should be in place within a year.

"One of the most common complaints that I hear is from people who return from overseas and are confronted by a mobile phone bill that runs into the hundreds or even thousands of dollars," he said.

The Australian and New Zealand governments are now seeking feedback on the draft report from the telecoms industry, ahead of formulating their final responses.

Australians using their mobile phone overseas to make calls, send a text or surf the internet have been stung by phone companies reaping massive profit margins as high as 1000 per cent.

The great global roaming price gouge has left some travellers with shock bills costing more than their flights.

Communications Minister Stephen Conroy said consumers were right to be angry about "excessive charges".

Within 12 months, when Australians switch on their phone overseas they will receive a text telling them the exact charge to make a call, send a text or use the net, including receiving emails.

Australians made a record eight million trips overseas last year and the Telecommunications Industry Ombudsman said mobile roaming complaints have soared by 40 per cent in the past nine months to 3599.

Many people said they were never told about the high charges, which vary widely depending on the type of plan and provider.

Sending data can cost $20 per megabyte. One photo sent from a smartphone can cost almost $40. Phone calls can range between $2 and $8.50 per minute, with text messages around 75c each.

Senator Conroy said he was determined to expose these hidden charges.

"One of the most common complaints that I hear is from people who return from overseas and are confronted by a mobile phone bill that runs into hundreds and sometimes thousands of dollars," Senator Conroy told the Herald Sun.

"They are angry about the excessive charges and they are angry about not knowing how much they are being charged in the first place."

Mark Gregory, a senior lecturer in network engineering at RMIT University, said phones companies saying that they incurred the huge costs of calls made overseas was a "worldwide weak argument".

"What happens is that every international company blames every other international for the high charges," he told 3AW radio station.

Dr Gregory said regulation ultimately came down to the government.

"The government needs to impound the ACCC to actually regulate this system within Australia and to expose where the charges really are in the international companies, and by doing that something could be done around the world," he said.

"We’ve already seen the effect Australia can have by regulating and stepping up and doing something and we’ve seen that with the plain packaging of cigarettes. Australia can do something, but it’s up to the government to take the step to expose what’s going on.”

Dr Gregory said that he bought a cheap phone before leaving Australia before buying a pre-paid SIM where he landed to avoid bill shock.

Australian Communications Consumer Action Network chief executive Teresa Corbin said too many people were unaware of the huge costs.

"Consumers need simple information about the real cost of global roaming. No one wants to arrive home to a bill that will cost more than their holiday," she said.

Teenage traveller Rechelle, jetting off from Melbourne Airport with family yesterday, said friends had unwittingly racked up bills worth hundreds of dollars.

"For kids my age that is a lot of money," she said.

hudsonp@heraldsun.com.au

EXAMPLES OF PRICE GOUGING

1. A mother who was a primary carer for her daughter with a long-term illness received a phone bill of $4800 after a much-needed holiday in New Zealand. She relied on her phone to stay in contact with doctors, specialists and social workers because of her child's illness. She had no sense that she was using her phone in a way that would lead to an unfeasibly high bill.

2. A student received a bill for $8265.57 after a two-week holiday in Malaysia. When she called her telco to ask them to switch on global roaming before the holiday she was not informed of the high cost of making calls and using data when overseas.

3. One small businessman reported receiving a $9000 bill from Telstra after using international data roaming for one day in Singapore.

4. A man who only his smartphone on local wifi networks when travelling in Italy for three weeks still received a $1200 bill because his phone strayed from local wifi to data roaming on six occasions.

5. Sydney student asked Telstra to unlock his handset so he could buy an international SIM but they failed to do it. Telstra promised to waive the bill but after two months in the United States he was sent a bill for $25,000. After a battle, Telstra dropped the bill.

Source: Australian Communications Consumer Action Network

CUT THE COST

1. It is usually cheaper to buy a local pre-paid SIM card in the country you are visiting. Make sure you switch off the data roaming setting (in network menu).

2. Tell family and friends to send an SMS because receiving calls will cost you, and consider keeping in contact via Skype calls from a hotel or internet cafe

3. Check if your provider has discounted roaming rates for the country you are visiting. These offers are generally opt-in and need to be selected before you travel.