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Operators woo subscribers with repackaged data roaming

By BusinessNews Staff on May 7, 2014

In this era of dwindling revenue and stiffened competition among telecoms operators, the provision of roaming service for data packages by telcos has been identified as another source of income.

This is, therefore, viewed as another dividend of mobile cellular subscription, which in the last decade has seen significant growth at the global and local levels.

But records show that this growth has been more pronounced in developing economies where mobile subscriptions have taken over fixed telephony.

In most developing economies, where hitherto connectivity was based on expanding fixed lines, the trend has changed with emphasis now on mobile communications.

This, according to a recent International Telecommunications Union report, is likely to continue, as already, access to mobile networks is now available to 90 per cent of the world population, with 80 per cent residing in the rural domains.

Industry watchers say mobile data communication is gradually taking over voice and SMS communications, as many mobile phone users communicate with one another using several instant messaging platforms.

Technology change has shifted mobile subscribers from 2G to 3G mobile technologies in most markets, and a key part of this change has been the increasing use of smartphones by subscribers. This is stimulating the use of mobile broadband and data communications.

The trend from 3G to Long Term Evolution technologies (4G) in mobile markets is expected to spur the growth in mobile broadband usage, following the fast rising use of other wireless like tablets and laptops.

Despite the growth of mobile broadband, most Nigerians still do not roam their data packages because of high cost of subscription.

Some subscribers that hitherto roamed their data services do not want to try the option again because of the huge cost implication.

But recent moves to reduce the cost of roaming data packages by players in the global telecommunications space, according to experts, will encourage more Nigerians who travel to roam their data packages, which by implication, means more revenue for operators.

With stiff competition among telecoms operators, data tariffs are also gradually crashing as operators continue to give incentives to woo subscribers.

In recent times, significant policy and regulatory reviews have taken place to tackle the problem of high international mobile roaming service rates.

These initiatives have taken place at national, regional and the international level. The aim has been to reduce what is viewed as excessively high mobile roaming retail rate.

The Chief Marketing Officer, MTN Nigeria, Mr. Larry Annetts, said it was critical for operators to review the data tariff plan to ensure that mobile data communication was affordable and pocket-friendly on the go.

Speaking on a model developed by the firm for the purpose dubbed ‘MTN One World’, Annetts said subscribers neither needed a migrating code, subscription fee nor airtime deposit, as they “automatically qualified to use and enjoy the rates while roaming in any of the 19 MTN operating countries.

“All you need to do is to ensure your phone is turned on while roaming. Subscribers roaming on MTN OneWorld can also conveniently check their account balance and recharge via MTN Nigeria’s available top up options.”

Annetts said operators should consider delivering a new world of digital experience to customers by implementing friendly roaming tariff where customers who travelled to connected countries could still feel at home, browsing at a standard home rate.

He said global happenings such as continuous updating of profile messages; picture sharing; and instant sending and receiving of emails; uploading and downloading of information had made this very imperative.

“While many operators are shying away from resolving the high rates of data roaming charges or coming up with a better alternative, only a few are trying to ensure that their medium and high value customers still have access to the Internet through their mobile phones while roaming,” he added.

Annetts stressed the need for such price reduction arrangements to be extended to tourists, businessmen and women, holidaymakers, government functionaries and other people who travel abroad.

Currently, as result of the high charges by operators, many travellers rarely have access to the Internet using their mobile phones while roaming.

To avoid these charges, therefore, they intentionally switch off their data connection, thus avoid exchanging emails, multimedia messages, surfing the Internet, chatting, uploading and downloading information.

On its data offering for travellers, Airtel Nigeria now offers data roaming to postpaid customers.

The telco said, “Customers can send and receive e-mails while roaming. You can also enjoy other services such as MMS and Internet browsing.

However, prepaid data roaming for Airtel subscribers is available only in countries that allow prepaid data roaming.

Etisalat has also introduced its Prepaid Data Roaming Service, which enables some prepaid subscribers to enjoy access to emails, chats, Internet browsing, among others, on Internet-enabled phones while roaming abroad in any of its prepaid data roaming destinations.

In most cases, travellers who intend to roam their data packages have been advised to adjust the settings on their phones to avoid paying for roaming data charges, which can build up to quite a high bill.

[Punch]

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