Carriers should leverage Olympics to negotiate lower international data roaming rates: SeaBoard

A new report from The SeaBoard Group says now that Canada’s three national wireless operators have reduced domestic mobile data rates to more manageable levels, they should turn their attention to lowering international roaming rates for wireless data. The study, Heart of Darkness: A SeaBoard Look At International Digital Roaming, says there are technologies available today that can help carriers solve the problem. One solution involves inking agreements with carriers in countries that provide the more affordable roaming rates. Another would give consumers the opportunity to pre-pay for a data plan when entering a foreign country. In an interview with Tech Media Reports this week, SeaBoard Group analyst Amit Kaminer says consumers traveling abroad run into problems when their smartphone roams onto a network based on settings within the handset rather than on the best available roaming rates. Canadian wireless operators can fix this by inking roaming agreements with a preferred group of carriers – those with the lowest roaming rates. Kaminer says they can also use technology from SmartTrust, a company based in Sweden, which enables carriers to prioritize networks for roaming purposes. If data usage continues on its expected upward trajectory, combined with the same increase in smartphone adoption, “then you really need to have those solutions in place to leverage those trends,” says Kaminer. The second solution involves gives consumers the option of choosing an appropriate plan by prompting them with a text message, for example, to pre-pay for an international data plan. “This empowers the user and tells them two things. First, they’re going to have a lot of usage and roaming charges. And, second, they can prevent that by pre-paying on a certain package,” explains the SeaBoard analyst. High international data roaming rates are a new, but growing concern. The problem has gained attention in Canada because of two converging trends, according to Kaminer. Inexpensive domestic data rate plans allow consumers to enjoy a PC-like experience while on the road. Secondly, a growing number of smartphone users are downloading YouTube video clips, going on Facebook, doing Google searches and more. While these activities are affordable in Canada, abroad, “it’s buyer beware,” Kaminer says. The report details a business trip to Africa which resulted in a wireless bill of more $2,000. During the 10-day business trip, about 60 MB of data were used, primarily e-mail, downloading mail and uploading some attachments. Time is ripe for change SeaBoard says the 2010 Winter Olympics in Vancouver would be a prime opportunity to forge new relationships with the goal of lowering international data roaming rates. Giving international visitors here lower rates could go a long way in reducing roaming for Canadians who travel abroad. “We note that the carrot of the forthcoming Vancouver Olympics may well be a key motivation to bring focus to the inter-carrier data roaming discussions,” reads the report. “Offer your roaming partner some preferred rates of your own whilst its customers are in Vancouver next year; give them something to brag about at home.” Kaminer says the Olympics represent a great “pull factor” that will bring thousands of tourists, athletes and other visitors to British Columbia who will roam onto Canadian carrier networks. Low rates could potentially get the wheel spinning on reciprocal deals in the future, he adds. “Here’s your chance to leverage that and try to seek an agreement with foreign carriers,” Kaminer says of the opportunity for Canadian carriers. Perry Hoffman is an Ottawa-based freelance writer. He can be reached at perry@messagingmechanics.com

Carriers should leverage Olympics to negotiate lower international data roaming rates: SeaBoard

News | September 3, 2009

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