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International Roaming Revenues To Decline 11% Globally

According to a new report from Juniper Research, operator revenues from international mobile roaming are expected to experience a double digit decline in 2017.

Research author Nitin Bhas says that “this decline in global revenues is due to a 33% fall in European roaming revenues, following the EU regulation to end roaming surcharges.”

“While we expect roaming tariffs outside Europe to continue to be unregulated and to be significantly higher, operator focus will need to shift to innovative bundles and tailored pricing to preserve or grow revenues from travellers and immigrant workers.”

Fortunately for carriers, Juniper does expect revenues to bounce back somewhat in 2018 following a significant increase in active roamers and data usage.

The firm also sketched out some of its expectations of how Britain’s exit from the European Union will affect mobile roaming for both parties. They say that it is possible that UK operators may increase domestic prices, since their margins have been falling at the rate of 1-2% per annum over the last 5 years.

Alternatively, they say British operators try to make up the difference by adopting ‘Rest of the World’ tariffs for mobile roaming customers in the UK.

Juniper say that, under this scenario, “the average roaming spend per active mobile roamer would double by the end of 2022 due to higher costs, reaching $150 per annum, compared to our current estimates of $75.”

However, they argue this is “highly unlikely given historical customer backlash to such events and further regulatory interventions.”

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