20 / 76
But, there are alternatives for
those that need to use a lot of data.
Sprint’s prepaid international roaming
plans, for instance, offer 3G speeds at
reasonable day rates: $15 for a one-
day pass and 100MB of data; $25 for
200MB over seven days; or $50 for
500MB for 14 days.
Sprint’s not alone in zeroing in
on international roaming as a dif-
ferentiator. T-Mobile has rolled out
an “un-carrier” offering of no an-
nual contracts, overages or interna-
tional roaming fees for enterprise
users, available via its channel
partner program.
The company recently launched Un-Carrier 9.0, or
Un-Carrier for Business, in which it promises a “radically
new level of transparency, simplicity and value – and
upending how business buys wireless.”
The carrier said that the average American business
can save more than $5,100 on 20 lines over two years.
“We’re going to do for businesses what we’ve already
been doing for consumers,” said John Legere, T-Mobile’s
president and CEO. “Eliminate pain points and force
change. The majority of U.S. businesses – a full 99.7
percent – have less than 500 employees and don’t have
the money or resources to waste debating, negotiating
and deciphering the carriers’ hidden pricing.”
Google’s Project Fi, its mobile virtual network op-
erator (MVNO) play, also aims to shake up the roaming
world. For one, the service, when launched, will allow
users to pay only for the data they use, anywhere in
the world.
IDC analysts Brian Haven and Carrie MacGillivray
wrote in a research note that Google is banking on in-
dustry disruption, enabling seamless handoff between
cellular and “a million free, open Wi-Fi hotspots,” even
though at launch, Google is offering just one device.
“Project Fi could be concerning for all mobile opera-
tors – in particular AT&T and Verizon,” they wrote. “Google
represents the third platform in its truest sense, and is
infringing on the mobile operators’ turf by riding on bor-
rowed (read: wholesaled) access. With this offering, Google
is essentially relegating the cellular network to a pipeline
for which to deliver its product, similar to what OTT [over-
the-top] providers like Netflix and HBO Go have done to
traditional broadband providers. If Google can achieve
some meaningful scale, it could significantly disrupt the
market, and this business model could emerge as an alter-
native to the way that consumers traditionally subscribe
to wireless service. The question is whether or not Google
will try to achieve this scale – as scale is limited by the one
device offered, Google Nexus 6.”
Gene Munster, a financial analyst with Piper Jaffray,
put it more simply: Google’s Project Fi is an effort to
“motivate other wireless providers to provide cheap
wireless service that will basically make it easier for us
to consume more data.” And data (and the advertising
that comes with it) is after all the business that Google
is really in.
Again though, channel partners putting together
wireless strategies for their customers would do well to
examine the fine print.
“The main thing that strikes me is that it’s not espe-
cially cheap,” said Dean Bubley of Disruptive Analysis.
“Yes, $20 per month is a good headline price for U.S.
consumers who have a major-operator plan today, but
$10 per GB isn’t really that good a deal, unless you’re
a mostly Wi-Fi user who just needs a bit of cellular data
for maps and emails when you’re out and about.”
International, though, could be its ticket. Google
said that it will offer wireless roaming in 120-plus coun-
tries without charging roaming fees. It will cost $20 a
month for unlimited talk/text around the world and $10
per 1GB of global data – because thanks to a deal with
Hong Kong-based Hutchison Whampoa, U.S. customers
will be able to travel across international markets for
free. The arrangement includes roaming on Hutchison’s
three operations in the United Kingdom, Ireland, Italy
and other markets around the world.
“If this is going to be a unique software/hardware ori-
ented experience, Google could take a stab at improving
the experience for users when calling internationally or
when traveling,” Lowenstein said.
There’s also the old-fashioned way to avoid roaming
fees: buy a local SIM card in the country you’re travel-
ing to. Agents can often strike bulk wholesale deals
with overseas distributors in popular markets such as
the UK or Mexico. Users simply swap out their SIM
cards inside the device. As Lowenstein pointed out,
this can be confusing for end users. But, agents can
help users determine whether CDMA or GSM is the
compatible way to go.
Of course, for those businesspeople traveling to a
number of countries on a regular basis, the home car-
rier’s roaming plan may actually be the optimal choice.
Again, a channel partner has an opportunity here to
play a consultative role.
INTERNATIONAL AGENTs
SECTION
Source: Informa Telecoms and Media, 2013
Global Roaming Revenues, 2011-2016
41.9
46.2
50.1
53.6 56.9
59.9
2011
2012
2013
2014
2015
2016
60
50
40
30
20
10
0
Revenue (US$ bil.)
Voice
SMS Data
20
Channel
Vision
|
May - June 2015