GO UP
roaming background
Roam like at home

Roam like at home tariffs brought global fall in data revenues

The mobile roaming market has changed enormously since its inception – Roam like at home is one of novelties. In the early days, roaming gained adverse publicity because the use of mobile services when travelling abroad cost so much more than domestic tariffs.

SIM card e SIM shop

 

The somewhat unfortunate consequence of this pricing disparity is that we are now all too familiar with the term “bill shock”, because extraordinarily high bills were often the unwelcome result of mobile usage when abroad.

Changes in regulation, and actions by operators themselves, have reduced the cost of roaming over time, and indeed roaming charges were scrapped in the European Union in June 2017.

However, some users have been unable to shake off their distrust of roaming, and so-called “silent roamers” still exist. Such users generate no roaming revenue for their home MNOs. Instead, they seek alternative ways to connect their mobile devices that are cheaper or even free of charge.

Methods can include travel SIMs, local prepaid SIMs, WiFi routers, free WiFi in hotels and coffee shops, and others.

 

Roam like at home tariffs globally

The mobile roaming data market is set for growth in the coming years. According to a report published by Juniper Research in late-2017, operator revenues from international mobile data roaming are expected to grow at an average annual growth rate of 8%, reaching $31 billion in 2022 compared to $21 billion in 2017.

This is despite a global fall in data revenues by 11% in 2017 — including a 46% decline in western Europe — as a result of operators increasingly offering ‘roam like at home’ packages around the world.

The global average roaming data usage per user per annum was also forecast to increase from around 500 MB in 2017 to almost 1.6 GB by 2022.

While the Roam Like at Home concept has been a huge success within the European Union, it’s less common and has more limitations in the rest of the world in 2024. Here’s why:

Challenges to Global Roam Like at Home

  • Cost Differences: Wholesale roaming costs (the prices carriers charge each other) vary wildly between countries. Offering seamless roaming everywhere would be financially difficult for some providers.
  • Network Compatibility: Technological standards and network infrastructure aren’t completely standardized across the globe, making smooth roaming more challenging.
  • Regulations: Each country has its own mobile market regulations, making it difficult to establish a single, unified “roam like at home” structure globally.

Where Some Progress Exists

  • Regional Agreements: Some regions have limited versions of Roam Like at Home. Examples:
    • Parts of the Caribbean
    • Some agreements between countries in Southeast Asia
    • Efforts within the Gulf Cooperation Council (GCC) in the Middle East
  • Carrier-Specific Plans: Certain carriers offer international roaming plans or passes with reduced rates in specific countries or regions. These are more like add-ons than true RLAH.

The Future

There’s a push towards expanding the Roam Like at Home concept, but it’s likely to be a slow and gradual process. Here’s what could help:

  • Technological Standardization: 5G standardization and the spread of eSIMs could ease some technical hurdles to global roaming.
  • Lower Wholesale Costs: If carriers around the world can negotiate lower wholesale roaming costs, it makes offering RLAH type plans more financially viable.
  • Multilateral Agreements: If more countries or regions can agree on roaming regulations, it could pave the way for expanded RLAH zones.
In the meantime, here are your best options for affordable roaming in 2024:
  • Check Your Carrier: See if they offer any international roaming plans or passes suitable for your destination.
  • Local SIM Cards: In many countries, buying a local prepaid SIM card for data is often the most cost-effective way to stay connected.
  • Rely on Wi-Fi: Utilize free Wi-Fi hotspots whenever possible to reduce data usage.

Klook.com

Driven by wanderlust and a passion for tech, Sandra is the creative force behind Alertify. Love for exploration and discovery is what sparked the idea for Alertify, a product that likely combines Sandra’s technological expertise with the desire to simplify or enhance travel experiences in some way.