Unlocking the potential of data roaming

The fear of bill shock for customers and businesses alike has meant that for too long data roaming has not achieved its full potential as a source of revenue for mobile network operators (MNOs). In fact, operator statistics indicate that around 40 per cent of travellers switch off their data connection while abroad, preferring to use WiFi and other access methods rather than running the risk of a large phone bill greeting their return.

In a highly saturated mobile market where every item of revenue counts, if MNOs cannot encourage mobile data roaming on their networks they will lose out on a vital and lucrative source of revenue. 

Yet MNOs have struggled to do this to date and many users are still scared of the potential cost of accessing data services using their mobile devices when they travel. As long as this fear of bill shock remains, how can MNOs make data roaming seem attractive?

Key is understanding customer behaviour

The key lies in gaining an intimate understanding about customer behaviour. If data roaming is to be a success, MNOs will need to achieve a granular view of subscriber roaming behaviour right down to the IMSI, or even the IMEI level. This is a level of business intelligence granularity that is only now becoming available to MNOs, and it ushers in a new age of micro-segmentation for mobile roaming tariffs. 

Such detailed roaming data will prove vital in helping MNOs understand key information about user behaviour — which individuals within a company travel the most, where they travel and how much mobile data they consume, for example. 

This information allows operators to create highly tailored retail roaming tariffs based on the actual needs of individual customers. For example, if a particular company’s executives travel to the US regularly, the MNO will be able to develop a roaming package for voice or data roaming that includes USA roaming ‘day packs’, and so on. 

Also read: Cashing in on mobile data growth

Alternatively, it could be that certain employees have iPhones or BlackBerrys and the MNO could create specific plans to ensure users can enjoy the full functionality of their devices without it becoming too costly. It is through such tailored tariffs and loyalty reward schemes that MNOs will be able to encourage roaming take-up and thereby drive up revenues.   

Running alongside this micro-segmentation, it is important that there is a mechanism for setting strict usage thresholds beyond which several levels and types of intervention occur.  These interventions could range from sending alert messages as thresholds are approached, through to barring the subscriber from further activity.

This can, moreover, be scaled to each individual user (certain job grades, for example, may require greater access to data services when abroad). Such an approach applies the concept of pre-paid data services to post-paid customers - giving them the peace of mind to roam without concern when abroad - and is essential for generating the confidence needed to unlock roaming revenues.

Data roaming is coming of age. We are increasingly living and working globally and require the services roaming can provide. For the first time now, the tools are available to create flexible tariffs that encourage users to take advantage of the full functionalities of their phones when abroad. 

More importantly, the saturated market conditions we are facing in developed economies are creating the right conditions for MNOs to focus on their data roaming businesses. Quite simply, as the number of new subscriptions dry up, it will be in areas such as roaming that MNOs can secure continued growth. 

In short, the revenues promised by an effective mobile roaming strategy are too good to ignore and the MNO can launch first stands to gain the most.

(The views expressed in this article are that of the author and do not necessarily reflect the views or policies of CIOL)