Mobile drifting enables customers of one network operator (home network) to utilize the system of another network operator (visited network). The visited network is generally beyond the geographic coverage area of the customer’s home network.
Mobile drifting has traditionally supplied network operators having an chance to get extra service revenues. But, regulatory policy interventions, like the EU legislation to abolish drifting in member nations, has a negative influence on drifting earnings for several network operators throughout the world.
Mobile drifting market growth
According to the most recent market study by Juniper Research, cellular network operator earnings from global cellular roaming are expected to recover slightly, after a decrease in 2017 following the debut of RLAH (Roam Like at Home) in Europe and other markets.
But, overall cellular roaming earnings are expected to remain flat over the subsequent 4 decades, representing approximately 6% of overall operator charged earnings and $51 billion in worth.
RLAH allows mobile communication system subscribers to utilize their yearly voice, messaging and data allowance whilst drifting — without needing additional service fees.
Juniper discovered that pushed by the addition of RLAH packs in EU and other areas like North America and Asia-Pacific, the mobile roaming market observed a substantial growth in data use and traffic.
In 2017, Juniper estimates that mobile data traffic climbed by 200 percent internationally, and by 260 percent in Western Europe.
“Though the total percentage of’quiet roamers’ proceeds to drop in several markets, driven by RLAH and more economical packages, the industry also observed operators expanding RLAH to more nations within the past 12-18 weeks. Furthermore, several neighboring states are announcing roam-free intra-regional agreements, much like the EU,” said Nitin Bhas, head of research at Juniper Research.
Juniper estimated that the percentage of hushed roamers not employing any information roaming services in 2018 accounted for 51 percentage of complete data roamers worldwide — that is down from 72 percentage in 2013.
Outlook for Additional mobile roaming affects
After Britain’s choice to depart from the EU, it’s been reported , in case of a no-deal Brexit, cellular operators will have the ability to implement roaming costs. Under such a scenario, Juniper anticipates that the ordinary roaming price per busy UK roamer could almost double by the end of 2022 because of high prices.
But, Juniper believes this type of scenario to be improbable and rather mobile network operators may continue to concentrate on additional revenue streams, like providing managed solutions from the Web of Things (IoT) business.
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