Jewel in the crown

Mobile Europe, 24 Apr 2006

With roaming revenues coming under threat from both legislation and VoIP technology alike, Abraham Joseph, md of Inteligentis, looks at how operators can respond to change.

Mobile operators generate over $60 billion in roaming revenues annually and make over 20% of their profits from roaming. Indeed, Inteligentis has heard of operators generating over 85% of earnings from roaming. Whatever the actual values, it is clear that in Europe especially, their ‘jewel in the crown’ is under threat on two major fronts: regulators are demanding reductions in roaming charges; and an increasing number of new entrants – many using low-cost VoIP technologies – are entering the market.

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