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Negotiating Roaming Agreements to Optimise Service Profitability & Managability Issues

International mobile roaming is undergoing fundamental change. Regulatory pressures are forcing down lucrative inbound roaming revenues and margins. Meanwhile, emerging international roaming alliances, principally the Vodafone Group, Freemove and Starmap, have introduced pressures to "internalise international roaming traffic". Members of these alliances are naturally using their increased scale to negotiate big discounts for guaranteed roaming traffic volumes.

Against this background, Operators outside these alliances are being forced to rethink their strategy so that they remain relevant to the alliance players in wholesale roaming markets while remaining competitive with them in retail markets.

In this paper we examine the new challenges faced by operators, particularly the independents, in developing profitable roaming services. We consider the alternative choices available to them and we show how a successful roaming wholesale strategy can be achieved, even by operators without natural alliance partners.

We pose the questions operators must ask themselves when determining their optimum roaming negotiation strategy. We illustrate how in certain circumstances, alliance membership acts as a barrier, not an aid, to increased profitability.

Finally we explain why we expect operators to sustain roaming revenue profitability despite competitive pressures and a decline in margin yields. We show how improved outbound roaming margins and more effective roaming direction tools can help compensate for reduced inbound roaming revenues.

Price: EUR 2,500.00 / GBP 2,000.00

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1
Overview
1
2
Introduction
2
3
The Challenges Facing Wireless Operators
3
3.1
Changing Roaming Retail Drivers
3
3.1.1
Price Elements
4
3.1.2
Service Elements
4
3.2
The Emerging Wholesale Market
5
3.2.1
Increased Emphasis on Outbound Roaming Margin
6
3.2.2
Prioritisation of Service vs. Coverage Development
7
3.2.3
Competing in the Wholesale Market
9
4
Strategy Options for International Roaming
10
4.1
Choosing Roaming Relationships
10
4.1.1
Case Illustration - Operator A
11
4.1.2
Case Illustration - Operator B
12
4.1.3
Lessons From the Experiences of A and B
12
4.2
IOT Pricing and Negotiation
15
4.2.1
IOT Volume Discounting
15
4.3
Roamer Direction
18
4.4
Potential Benefits From the Strategic Options Discussed
21
5
Roaming Consultancy Support
22