Roaming Tariff Market (By Roaming Type: National, International; By Distribution Channel: Retail Roaming, Wholesale Roaming; By Service: Voice, SMS, Data) - Global Industry Analysis, Market Size, Opportunities and Forecast 2021 - 2028

The global roaming tariff market is expected to grow at a CAGR of around 4.5% from 2021 to 2028 and expected to reach the market value of around US$ 90.5 Bn by 2028.

Report coverage

Roaming extends the coverage of the home operator's retail voice and SMS services, allowing mobile users to use their home operator number and data services while travelling outside of their home country. The roaming agreement covers the technical and commercial aspects of the service.

Market Drivers

Industry self-regulation bolsters the growth of roaming tariff market

According to the GSMA report, regulators are concerned about roaming tariffs and consumer bills. High roaming tariffs result from varying conditions in respective countries. Less developed countries bear an unequal and disproportionate share of the regulatory burden. The telecom industry understands regulators' concerns about international mobile roaming tariffs. With regulators encouraging operators to take action, mobile users are more aware of tariffs while travelling. Apart from that, consumer benefits from industry self-regulation will be substantial. In June 2012, the GSMA announced an initiative that will offer mobile users with greater visibility of their roaming tariffs and usage of data services while travelling. For example, implementation of monthly data roaming spending limits to help consumers manage roaming tariffs when data usage reaches the limit. Currently, the implementation of such measures covers over a billion mobile users, providing a transparent and consistent experience for travelers.

Declining of prices is augmentative for roaming tariff market to take a forefront lead in the global market

Regionally, market trends are positive, and the telecom industry is committed to take the lead. With roaming tariffs falling, operators are continuing to develop innovative offers with savings of up to 79%. Telecom operators present throughout the region are taking the initiative to serve the needs of international mobile users by addressing inadvertent roaming. Furthermore, telecom operators are investing heavily to address the technical challenges associated with prepaid route availability and interoperability. As a result of the increased volume of data downloaded, operators have introduced innovative roaming tariff packages involving flat rate daily bundles that deliver much lower prices per megabyte than was previously available.

Market Segmentation

The global roaming tariff market is segmented based on roaming type, distribution channel, and service. Roaming type is classified into national and international. Distribution channel is bifurcated into retail roaming and wholesale roaming. Further, service is segmented as voice, SMS, and data.

Based on roaming type, the international roaming segment has held a dominant share in the past and is expected to continue in the future. Because international roaming tariff is one of the many communication services available to mobile users while travelling abroad, it has received a lot of attention in the market that is responsible for growth. Such factors fuel the segmental growth ultimately contributing growth of the overall market.

The data segment will augment the largest revenue share for the roaming tariff market based on service segment. The vast majority of telecommunications companies provide data roaming plans as an alternative to standard charges. According to the OECD report, nearly 23 operators offer a daily plan, 10 operators offer a weakly plan, and 35 operators offer various types of monthly plans. Such factors have positive influence on the roaming tariff market to grow to its maximum potential over the forecast period.

Regional Overview

Europe dominates the roaming tariff market; Asia Pacific to record fastest growing CAGR in the coming years

Europe has dominated the roaming tariff market in the historic period and is expected to do so again during the forecast period. According to a European Union report, the EU announced the elimination of roaming surcharges for all people who travel within the EU on a regular basis. Since June 2017, people have only had to pay for domestic charges. Furthermore, according to the OECD report, wholesale data roaming charges are regulated in the EU and European Economic Area and are subject to transparency and bill control measures. Customers should be provided with roaming tariff information on the charges that apply to data roaming services when they first connect to a visited network and initiate a data session, according to the amendments to the European Union Roaming Regulation. Furthermore, the European Union Roaming Regulation considered a strong move toward protecting consumers from bill shock by identifying the problem and imposing an obligation on data roaming providers. Also well-known is the European Union Roaming Regulation, which is the most comprehensive example of regulatory intervention in international mobile roaming services. Such factors contribute to the growth of the regional market, which in turn contributes to the growth of the roaming tariff market.

In the coming years, Asia Pacific is expected to have the fastest growing CAGR in the roaming tariff market. As the Asia Pacific  mobile environment expands, both in terms of subscribers and data traffic and with roaming services still in the works, the APAC region is expected to reach its full potential in the future. Asia Pacific's roaming services will continue to grow, as the region is home to 25% of the world's global roaming market and 42% of the world's population. Apart from that, the APAC mobile market space is developing in ways compared to other regions in the world, with mobile penetration in low-income groups and dual-SIM trends in the market. It is common for Asia Pacific mobile users to use roaming substitutes such as call back services and international call forwarding services. Certain substitutes are more appropriate for the regional market to reach its full potential. Such factors have a positive impact on the growth of the regional market, ultimately contributing to the overall growth of the roaming tariff market.

Competitive Landscape

The roaming tariff market is characterized by the presence of fewer companies that dominate the overall market. To continue the dominance, several companies adopt different strategies that assist them to stay forefront in the market. Some of the top players included in the roaming tariff market report involve AT&T Inc., Bharti Airtel Limited, China Mobile, Deutsche Telekom AG, T-Mobile, Telefónica, S.A., Vodafone Group Plc, Verizon Communications Inc., and among others

Market Segmentation

Market By Roaming Type

National
International

Market By Distribution Channel

Retail Roaming
Wholesale Roaming

Market By Service

Voice
SMS
Data

Market By Geography

North America
•    U.S.
•    Canada

Europe
•    U.K.
•    Germany
•    France
•    Spain
•    Rest of Europe

Asia-Pacific
•    China
•    Japan
•    India
•    Australia
•    South Korea
•    Rest of Asia-Pacific

Latin America
•    Brazil 
•    Mexico
•    Rest of Latin America

Middle East & Africa
•    GCC
•    South Africa
•    Rest of Middle East & Africa