Assessing the Value of Roaming over Mobile Networks

Roaming, a mandatory feature in mobile communications has traditionally provided major revenue for the operators. Convergence, i.e., usage of the same service over multiple access network technologies is an emerging area that will further enhance the significance of roaming in future. In this paper, we propose a simple model to assess the value of roaming over mobile networks. Major parameters that influence the value of roaming are identified. We apply our value model on three different roaming business models (bilateral, clustered and centralised). Our analysis shows that value of roaming for an operator is maximum in a centralised state and hence would achieve equilibrium, subject to certain conditions. We discuss the role of pricing and regulation with increasing value of roaming. The impact of inter-access technology (such as UMTS/WLAN) roaming on the value model is also studied in this paper. Finally, we provide a list of recommendations for increasing a mobile operator’s roaming revenue.