WiFi roaming is now the subject of increasing attention, particularly since hotspot access is a crucial part of mobile data access for many.

EU acts on mobile roaming charges

The European Commission is set to introduce retail price caps for mobile roaming while also underlining plans for structural changes to the industry that will encourage competition in roaming services.

From July, customers will be able to select a mobile roaming contract separate from that offered by their domestic operator while retaining their usual phone number. In an accompanying move, virtual service providers and resellers will be able to access other operators’ networks at regulated wholesale prices to provide roaming services to traveling mobile users.

Meanwhile, price caps are to be enforced to drive down roaming charges. A progressive reduction in voice and texting charges will be put in place from July this year — and the caps themselves are to last until June 2017. As of 1 July 2012, intra-Europe roaming charges for calls and mobile data usage are as follows:

Figure 7. Mobile roaming charges glide-path

EU efforts to bring down roaming charges also attend to issues of bill shock for customers traveling outside of the continent itself. An existing alert system will be supplemented by a warning text message, email or pop-up window notifying them when they are nearing €50 of data downloads, or their pre-agreed level.

Although mobile operators continue to deplore the EC’s rate reductions as a brake on industry investment, there are signs that high roaming charges may be stifling a growing revenue opportunity for operators. According to recent research from messaging vendor Syniverse, fear of bill shock means millions of travelers switch off mobile services while abroad, causing operators to miss out on some US$1.2b of additional revenue.¹¹

While international mobile roaming continues to grab the headlines, alliances are forming elsewhere in the industry to enable roaming solutions for alternative technologies. WiFi roaming is now the subject of increasing attention, particularly since hotspot access is a crucial part of mobile data access for many.

Canada seeks foreign investment in telecoms

The Canadian government has announced plans to ease restrictions on foreign investment as part of moves to boost competition in the telecommunications sector, lifting foreign investment restrictions on companies with less than 10% market share by revenue.

This exemption will remain in place for operators that increase their market share beyond the limit, as long as this is achieved through organic growth. Existing investment rules for incumbents will remain the same. These limit foreign ownership to 20% of voting shares and indirect control is set at 46.7%.

News of the initiative to attract foreign investment was accompanied by the announcement of new rules for the country’s upcoming auction of 700 MHz and 2.5 GHz spectrum in the first half of 2013. The government will institute caps so that four or more companies in each of the 15 license areas can secure spectrum.

Obligations on license winners were also outlined:

• Operators with two or more blocks of shared spectrum in the 700 MHz band will be required to cover 90% of the population within seven years
• Winners of both auctions will need to reach between 20% and 50% population coverage within 10 years, depending on the region.

Revisions to foreign investment limits in small operators and new spectrum auction rules are the latest attempts to encourage competition in the Canadian telecommunications sector.

Figure 8. Communications revenues in Canada by type of provider

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¹¹"Syniverse identifies $1.2 Billion Revenue Opportunity for Mobile Industry From ‘Silent Roamers,’” Syniverse Press Release, 28 February 2012.