4G Data Roaming To Generate £26bn For Operators By 2018
New report says 4G will increase roaming revenues, but warns EU legislation will start to bite
Mobile data will account for 47 percent of global roaming revenues by 2018, up from 36 percent at present, with operators generating a combined $42 billion (£25.7bn) from smartphone and tablet users using their devices abroad, according to a report.
Juniper Research says the advent of 4G services and reductions in roaming charges will encourage mobile users to access mobile data even more, and decrease the likelihood of them turning data roaming off when they land at a foreign airport.
However researchers have warned that in order for operators to harness the full potential of LTE roaming, they need to develop successful business models and the current roaming agreements for 4G are currently at the embryonic stage.
Data roaming
“Operators also need to sort out the right economics to encourage more usage at a value to the end users in order to avoid revenue erosion,” says Nitin Bhas, author of Mobile Roaming: Regulations, Opportunities & In-flight Strategies 2014-2018. “They need to also provide services that are both relevant and cost effective to LTE roamers.”
While the report says mobile customers will be more likely to use their phone abroad as the associated costs come down, it warns that the revenue derived from roaming could fall by as much as 20 percent if the European Union approves a proposal to abolish such charges in the continent.
European Commissioner for the Digital Agenda Neelie Kroes has told operators they cannot continue to rely on dated business models if they are going to continue to survive and has warned them to prepare for the end of roaming. The EU has already done much to reduce roaming costs within member states and Kroes says operators could even benefit from her ‘Connected Continent’ package of proposals.
Three has abolished some roaming charges in a number of countries, while EE has abolished additional costs for calls in texts across Europe, the US and Australia as part of its 4GEE Extra plans in the hope that this will encourage people to use their phone abroad more, and generate revenue.
Neither of these offers includes 4G data, although EE has opened up its LTE network to AT&T customers, who will be able to access superfast services when roaming in the UK from next year.
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