A new GSMA report released today shows that significant developments in the Latin American international roaming market have reduced the cost of data plans by 60 per cent and voice plans by 40 per cent over the past three years. These developments include new packaged services, lower prices and the implementation of transparency measures.
The study, conducted by BlueNote Management Consulting, analyzed the selection and variety of services of more than 40 operators in 14 countries in Latin America and the Caribbean, including Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Mexico, Panama, Peru, Uruguay and Venezuela. The sample represents approximately 95 per cent of the 695 million mobile connections in the region.
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The mobile industry acknowledges the demand for improvements among users and is working with the entire sector in Latin America to improve how rates, quality, security and transparency are designed. It is estimated that roamers will represent 12.3 per cent (or 85 million) of the 695 million connections in Latin America in 2013. The selection of roaming services, particularly voice plans, has been expanding to an even greater extent among prepaid customers.
The study shows that wireless carriers have developed a selection of roaming products with a tendency towards flat daily rates and multi-service packages (e.g. voice minutes and/or data Mb and/or SMS messages in a single bag). Products and rate models are adapted to the consumer’s profile and habits. The configuration of the bags (e.g. a fixed number of minutes, megabytes or SMS for a set rate) is constantly being updated, with operators adapting the parameters and technical-retail conditions of the product to make use simple and costs clear and predictable for the user.
The report highlights a number of key trends:
• 35 per cent of operators offer voice bags (i.e. a fixed price for a certain number of minutes for incoming and/or outgoing calls to the home country or to various destinations within a fixed period of time).
• Nearly 60 per cent of operators offer one or more data bags (i.e. a fixed price for a certain amount of data traffic within a fixed period of time).
• Fixed daily prices and multi-service packages are still under development, though many operators already offer them.
• Since 2010, innovation in roaming services has decreased rates significantly, with all-time reductions reaching an average of up to 60 per cent for data and nearly 40 per cent for voice plans.
• New forms of retailing and rates allow users to receive up to 80 per cent off regular prices.
The study also reveals that services are becoming more transparent. The rate structure is being simplified and unified by country to help users better understand it. This new selection supplements the Data Roaming Transparency Scheme launched by GSMA Latin America in September 2012. This initiative, backed by 40 Latin American mobile operators, was geared towards aligning and improving transparency in data roaming in order for users to more easily view their charges for mobile data services used during trips in their region and abroad. The plan has given consumers more control over their use patterns, significantly reducing cases of bill-shock (i.e. exorbitant bills that take roaming users by surprise when they return from a trip).
On the other hand, the study emphasizes initiatives aimed at people in the region who live near country borders. Many operators are already offering roaming products with reduced rates adapted to the pattern and user habits of this particular segment, given that these consumers often need to use their cell phones on both sides of the border.
Although further developments are needed, wireless carriers across the region are working to diminish the cases of undetected roaming that sometimes occurs when users are near a border and pick up the signal of an operator in the neighboring country.
In spite of the advances, the study also points out that the mobile industry continues to face many adversities when it comes to expanding its selection. These include extremely high taxes imposed on operators, double taxation for offering service in two countries and the high levels of fraud that affect the industry. If these problems were resolved, users would experience even more notable benefits.
To see the full results of the regional study, visit:
http://www.gsma.com/latinamerica/resources.
For more general information on how international roaming works in Latin America, go to: http://www.gsma.com/latinamerica/roaming-services-in-latin-america.