Data Roaming to Generate $42B Sales by 2018—VelaTel Global (VELA) Is Ready to Get Its Share
By Tobin Smith | January 15, 2014, 12:31am GMT
A new report from Juniper Research has valued operator revenues generated from mobile data roaming at $42B USD by 2018. This will represent 47% of the global mobile roaming revenue, compared to an estimated 36% in 2013.
The New Mobile Roaming: Regulations, Opportunities & In-flight Strategies 2014-2018 report found that with LTE deployments increasing and set to grow exponentially in all markets around the world, it will continue to fuel the explosion of roaming data usage.
The report notes that these revenues will be driven by increasing data usage, as operator migration towards 4G will induce consumers to take advantage of faster broadband networks, while reductions in roaming charges will spur more frequent and heavier usage.
However, the report notes that in order to achieve the full potential of LTE roaming, successful business models towards end-users and between operators are needed. Roaming agreements for 4G LTE are in its initial stages and operators are currently looking to partner with tier one operators in developing the right wholesale model. Report author Nitin Bhas added: ‘Operators also need to sort out the right economics to encourage more usage at a value to the end users in order to avoid revenue erosion. They need to also provide services that are both relevant and cost effective to LTE roamers’.
This IS the VelaTel strategy with its 100% owned subsidiary CM Mobile…a high value mobile virtual network operator (MVNO) that offers up to 75% LOWER roaming rates to its Asian customers (mostly PRC business travelers) with up to NINE local mobile phone numbers on ONE SIM card.
CM Mobile is the only MVNO that allows it subscriber to receive local (not long distance) mobile calls in Hong Kong, China, Macau, Taiwan and now Singapore with its new StarHub roaming deal (the #2 Mobile Network Operator in the city/state of Singapore).
CM Mobile is a “high value-add” MVNO because it owns its own telco switch and Network Operating Center (NOC). This allows them to offer the local number functionality AND up to 75% LOWER voice and data roaming charges to its frequent traveler customers.
The Juniper Research report corroborates NBT position that the high value MVNO with worldwide roaming agreements (CM Mobile is in process of adding Europe/US/Canada/Thailand/Korea to its network) is the best business model for the 130 million Chinese who travel outside of China and 70 million frequent business travelers in China.
Source: LightReading