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When in Roam... Mobile data revenue set to skyrocket

When in Roam... Mobile data revenue set to skyrocket

“To meet these expectations, operators are extending the reach of their LTE networks through agreements with operators in other markets."

Mobile data roaming will generate approximately $US50bn in revenues by 2019, contributing as much as 56 per cent to global roaming revenues.

According to new research by global analyst firm Ovum, mobile data will experience the fastest revenue growth over the forecast period, and is expected to drive growth of roaming revenues as voice revenues begin to stagnate.

The increasing penetration of smartphones and SIM-enabled tablets, along with the deployment of LTE networks, is driving the growth of mobile data usage with mobile users increasingly wanting to use the same services everywhere, whether they are at home or traveling abroad.

“To meet these expectations, operators are extending the reach of their LTE networks through agreements with operators in other markets,” says Nishi Verma Nangia, Senior Analyst, Ovum.

“And in doing so are laying a solid foundation to allow travellers to maintain the same high-speed access to the Internet they have while in their home markets.

Nangia highlights that roaming growth is still impeded by the cost of roaming services and the legacy of “bill shock”. Telecoms regulators in some regions – especially in the EU – have been taking steps to make roaming services more affordable for consumers.

In addition to regulatory developments, there have recently been commercial initiatives, as operators in some regions have launched new roaming propositions to stimulate adoption among their customer base.

“But it’s not pricing alone; operators need to demonstrate the relevance of roaming service to travellers, particularly in emerging markets, to encourage roaming adoption,” Nangia adds.

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