148 Million Mobile Data Roaming Subscribers This Year
Travelers have long been familiar with the roaming services available for cellular voice calls. Now that 3G networks are widely deployed, similar roaming functions are being made available for data services including MMS and mobile Internet access. Explored in a new ABI Research Brief, these arrangements are already generating revenues in the billions of dollars.
“When it comes to mobile data roaming, all eyes will be on Europe,” says ABI Research senior analyst Mark Beccue. “With its ease of cross-border travel, Europe leads the world in mobile data roaming. To some extent, Europe can be seen as an advance case-study for the rest of the world, although many factors are different in the US and Asia. While some very low roaming prices can be found in Asia, demand for the service is lower.”
While the idea of mobile data roaming is not new, demand is clearly taking off, driven by the broadening rollout of 3G networks. Carriers are still experimenting with pricing, and many are leaning towards the same kind of package deals so popular with voice services: a bundle or “bucket” of usage for a fixed price rather than pricing by per Megabyte. Local demand may also play a role, with competition for users in major business and tourism centers driving down prices compared to rural regions.
Indeed, prices for data roaming have been falling in Europe and roaming data usage has been growing. However, notes Beccue, “Revenue growth for data roaming will be constrained by two factors: while usage grows, falling prices are partly offsetting revenue gains. And, at some point, penetration of the traveling population – or that part which might use data roaming – will have reached saturation.
“When it comes to mobile data roaming, all eyes will be on Europe,” says ABI Research senior analyst Mark Beccue. “With its ease of cross-border travel, Europe leads the world in mobile data roaming. To some extent, Europe can be seen as an advance case-study for the rest of the world, although many factors are different in the US and Asia. While some very low roaming prices can be found in Asia, demand for the service is lower.”
While the idea of mobile data roaming is not new, demand is clearly taking off, driven by the broadening rollout of 3G networks. Carriers are still experimenting with pricing, and many are leaning towards the same kind of package deals so popular with voice services: a bundle or “bucket” of usage for a fixed price rather than pricing by per Megabyte. Local demand may also play a role, with competition for users in major business and tourism centers driving down prices compared to rural regions.
Indeed, prices for data roaming have been falling in Europe and roaming data usage has been growing. However, notes Beccue, “Revenue growth for data roaming will be constrained by two factors: while usage grows, falling prices are partly offsetting revenue gains. And, at some point, penetration of the traveling population – or that part which might use data roaming – will have reached saturation.
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