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Mobile voice and data roaming trends

02 October 2009

Read more: mobile data mobile voice roaming European Commission EU

Margrit Sessions analyses new types of international mobile data and voice roaming products

In 2006, a Eurobarometer survey commissioned by the European Commission discovered that 59% of consumers who travel abroad would use their mobile phone more if prices were lower.

In short, after a long process of consultation, the Commission found that international mobile voice roaming tariffs within Europe were too high and that there was insufficient competition between operators in reducing tariffs. It decided to impose a decision on a pan-European basis as there was insufficient time for the national regulator to take action.

But the decision to implement a pan-European roaming tariff cap — although implemented quickly — was the result of a lengthy process of debate and trial and error initiatives, outlined in the table.

The new set SMS rate has brought the price down to below that of many operators’ domestic SMS rate. The difference between the set rate by EU and zone 2 is quite significant now as illustrated in the chart below:

The chart shows details of the variance between the EU zone and the neighbouring zone for 18 selected mobile operators.




Operators seeking to recoup some of its lost revenue by the introduction of new types of international voice and data roaming products. The emphasis is on providing bundles of data buckets in exchange for a volume discount.



As a result of the EC cap, it is likely that a two-tier international mobile roaming structure will be produced.

In the first tier, regional mobile operators will use their buying power to implement preferential roaming rates for their customers. An example of an operator pursuing this strategy is Etisalat.

In the second tier will be the single in-country mobile providers which will seek to maximize their existing roaming revenues by keeping their prices high.

But as it is likely that the regional mobile operator will continue to attract more roaming customers through preferential rates and economies of scale, the local stand-alone mobile operator will come under increasing pressure to join a wider roaming alliance in the future. GTB

 

Globul (Bulgaria)

Product:

Balkan

Globul offers three types of bundles, namely Travel Europe, Travel Balkan and Travel GoWeb, each with included minutes. The Balkan bundle for example includes incoming and outgoing minutes to Bulgaria, visited country and to EU zone countries, although the calls needs to be made on the preferred network. Calls made using this package though attract a minimum charge of one minute, which is higher than the set cap by the EU of 30 seconds and thereafter per second

KPN (Netherlands)

Product:

Neighbour Bundle

For €4.20, a subscriber can call at the home rate when roaming in neighbouring countries including Belgium and Netherlands.

Orange (UK)

Product:

Favourite Country

Provides a bundle of calls to one country selected out of five countries (including France, Spain, Greece, Ireland and Belgium). There is a monthly cost of £4.89 for a 30-day period or a per month rate. For that rate the subscriber receives 60 inclusive roaming minutes (outgoing and incoming calls) for £0.284 per minute. There is also a “Five Favourite Countries” tariff to the five countries listed above for a monthly cost of £7.83 for a 30-day period or a per month rate. For that rate the subscriber receives 100 inclusive roaming minutes (outgoing and incoming calls) for £0.284 per minute. Call savings are up to 20%

O2 (Czech Republic)

Product:

Smart Roaming

Allows voice roaming in selected European holiday roaming destinations at prices that are lower than the EC roaming cap. Holiday destinations include: Some EC countries and non-EC countries such as Croatia, Egypt, Malaysia, Thailand, Tunisia and Turkey. Rates to some EC destinations are well above the EU cap — to call back home from the UK being a Smart Roamer is 25 crowns compared to 13.95 crowns a minute (excluding tax) respectively.

O2 (UK)

Product:

International Data Bundles

In common with other mobile operators, O2 provides a bolt on pack for data users who can purchase a data pack for a fixed price before going abroad. The bundle has to used within a 30 day period from when it is purchased. There is no refund for unused bundles and there is a one month minimum term period. There are two data bundles with one off costs as follows:

Data Abroad 10: a 10 megabyte data bundle for £20

Data Abroad 50: a 50 megabyte data bundle for £50

SFR (France)

Product:

Business Global Access (France)

SFR, the second mobile operator in France, launched a promotion for a data roaming package from July 15 to August 30 with claimed tariff reductions of up to 50%. There are two prices available:

Forfait Roaming with a 150 megabyte data allowance: which costs €70 per line a month

Forfait Roaming with a 500 megabyte data allowance: which costs €240 per line per month.

T-Mobile (UK)

Product:

T-Mobile Traveller:

Provides an extra add-on service called “Euro Travel Booster” for a flat rate fee which allows a limit of calls to be made ore received or text messages to be sent as part of the allowance. The service is only available in 30 European countries and for a 20 day period (with no refunds). The Euro Travel Booster rates are as follows:

Euro 5 Booster: £5 fee , includes 20 minutes of calls to be made, or 84 minutes of calls received, or 30 texts to be sent

Euro 10 Booster: £10 fee, includes 40 minutes of calls to be made, or 84 minutes of calls received, or 60 texts to be sent

Euro 20 Booster: £20 fee, includes 80 minutes of calls to be made, or 168 minutes of calls received, or 120 texts to be sent

Euro 30 Booster: £30 fee, includes 120 minutes of calls to be made, or 248 minutes of calls received, or 180 texts to be sent

TMN Portugal

Product:

Roaming Voucher

TMN, the mobile subsidiary of Portugal Telecom, has introduced a discount plan for roaming voucher purchases and pre pay customers. The roaming vouchers are valid for countries in the EU and South America and offer discounts of up to 30%, according to call duration and up to 40% for the total number of minutes used

Vodafone (UK and others)

Products:

Vodafone Passport

Mobile Broadband Laptop roaming

Vodafone Passport: launched in 2005, the Vodafone Passport service provides the home user to take the standard user tariff to selected overseas destinations after an initial set up charge (£0.75 in the UK). The service has to be registered by the subscriber but there is no other charge for doing so. Vodafone Passport allows the user to use his tariff in 31 countries — mainly Europe but also including Australia, Japan and New Zealand, but not the US.

Vodafone Mobile Broadband Laptop roaming: Provides a 24-hour usage tariff for £9.99 which is currently available in 53 countries (some of which are available for a promotional period) with a usage cap of 50 megabytes per day. It is available for Mobile Broadband contract customers with 1, 3 and 5 megabyte user allowances. Above the 50 megabyte per day allowance there will be a charge of £4.99 per megabyte

Margrit Sessions is managing director of Tariff Consultancy, and the information has been extracted from her September 2009 publication Future Mobile Voice and Data Roaming Trends, available from the consultancy on info@telecomspricing.com  or +44 20 8993 6861




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