"The forthcoming European summer period is likely to see increased communications from operators to its roamer base on how to select the appropriate partner with a focus on the accompanying roaming tariff applicable with the preferential partner selection" states Michиle Scanlon, telecoms consultant and author of Global Mobile Roaming, a new strategic report published by Informa Telecoms & Media.

Recent tariff developments such as the Vodafone Passport plan are aimed at transparency of pricing and lower costs when roaming within the operator group. Other groups and alliances are expected to announce new tariff initiatives, especially in Europe that continues to dominate the global roaming market, and is subject to an ongoing European Commission investigation into roaming charges.

The new strategic report, Global Mobile Roaming, includes research from an industry survey aimed at quantifying the roaming market, as well as identifying key operator issues. From the survey and industry research, Informa states the global roaming market at the end of 2004 accounted for 207m roamers globally accounting for 13% of the global subscriber base.

The roamer base is dominated by GSM contract users, but future growth will be driven by an increase in light to medium user segments such as the occasional business traveller or holidaymaker many of whom will be encouraged by operators to increase usage by the establishment of virtual home environments. The increased emphasis on prepaid roaming by operators and the opening of inter-technology roaming are new avenues of roaming growth. The report forecasts predict that the global roamer base will grow to 850m by 2010.

While the roaming base will continue to increase, there will be challenges to the healthy revenue roaming currently generates. Lower voice tariffs, slow take up of data usage while roaming, and increased usage of alternative services such as WiFi while roaming are all challenging mobile roaming revenue. Despite these challenges mobile roaming revenues continue to contribute 15% of operator revenues with the global market defined as $78.5 billion in 2004. Lower spend from heavy users driven by downward industry price pressures together with incremental spend from new roamers will lower the growth in roaming revenues in the coming years such that average revenue per roamer will decline 30% over the next five years, but still contribute over 25% to global mobile revenues by 2010.

Newly formed roaming alliances, both regional and global, will be looking to retain the majority, or all, of the roaming revenue within its group. However roaming alliances have yet to make a mark on the roaming industry in terms of branding, common allegiance and marketing presence as well as consumer offerings. "Operators are getting smarter with managed roaming techniques, but Vodafone still retains the upper hand in its position within the global mobile roaming market, and until challenged will be able to offer seamless roaming with its virtual home environment solution and new tariff initiatives as a competitive differentiator and incentive for choosing the operator and its roaming partner networks" continues Michиle Scanlon.

Global Mobile Roaming

This new strategic report examines the changing dynamics of today's global mobile roaming market with the emergence of global and regional alliances looking to streamline their roaming services. This strategic research report, from Informa Telecoms & Media provides you with over 200 pages of unique and highly valuable market intelligence, including detailed profiles of roaming alliances, a thorough analysis of the key issues in mobile roaming, case studies and unique 5-year forecasts to 2010, as well as commentary on the future of roaming in a world of alliances. Vital intelligence on which to base you roaming strategy.

Publication: June 2005
Authors: Michиle Scanlon
www.telecoms.com/gmroaming

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