Data roaming growth (CAGR 14.8%) that will more than offset the decline in Voice (CAGR -9.0%) and SMS (CAGR -20.2%).
Key Research Findings:
Outbound roaming revenues for EU operators are expected to bottom out in 2018, due to the implementation of the ‘zero roaming’ regulation, before it starts growing again in 2019.
Regulators recognise the increasing need for control of the roaming prices in order to protect consumers from a ‘bill shock’. Ovum believes that regulation in the mobile roaming market will continue to increase with the Eurasian Economic Union and Gulf Cooperation Council markets already taking steps to cap, and eventually eliminate, roaming prices in a similar fashion to the EU.
The propensity to roam is forecast to increase across the board for both business and consumer travellers due to a number of factors including reduced prices, regulation, smartphone adoption and simplicity to sign up for roaming services.
OTT services proliferation will continue to disrupt the market mainly at the expense of Voice and SMS services. However, Ovum believes that their market disruption will help drive roaming Data traffic and revenue in the medium term.
Revenues generated by consumer roamers will outpace those of business roamers (53/47%) in 2020 for the first time due to the increasing number of current ‘silent roamers’ that will start using roaming services in the years to come.
Operators will continue to offer more and more competitively priced roaming bundles that will help drive traffic and revenue. Ovum’s Innovative Roaming Offers Tracker: 1H16 captures 425 different roaming offers from over 70 operators in 29 countries.
FRX Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
