STOP PAYING THE EARTH FOR GLOBAL ROAMING

Transcription

1 STOP PAYING THE EARTH FOR GLOBAL ROAMING A MACQUARIE TELECOM DISCUSSION PAPER By Christopher Greig, Group Executive, Telecom Business, Macquarie Telecom 2013 Macquarie Telecom Pty Ltd

2 01 STOP PAYING THE EARTH FOR GLOBAL ROAMING WHY DO WE PAY THE EARTH FOR GLOBAL ROAMING AND WHAT CAN WE DO ABOUT IT? FOR TRAVELLERS, 25% OF THE MONTHLY PHONE BILL CAN BE ATTRIBUTED TO GLOBAL ROAMING. How often do we see headlines about mobile roaming? The costs are off the planet! Despite all the condemnation from governments, industry bodies and consumers, global roaming seems to be a world unto itself. Consumers, tourists and holidaymakers have the option to restrict or even cut off mobile usage altogether. They can change usage habits to meet the various options that are available. But for businesspeople, flexibility and control are critical as mobility is about anywhere, anytime access to your business, customers and the industry you operate in. You can t just turn off your phone and reconnect when you return. You need to be in touch regardless of where you are, not just in Australia but around the world. Unfortunately for business, global mobility often means two words BILL SHOCK. The reality is that the cost of using data or voice when overseas is expensive, and when doing nothing is not an option, global roaming is a real pain point for most companies. Examples abound of business users racking up enormous bills when travelling. One case saw a businessman billed for nearly $5,000 after buying data packs when no alerts were activated. Despite being careful, using Wi-Fi and turning off data, he was still the recipient of bill shock. GLOBAL MOBILITY OFTEN MEANS TWO WORDS TO BUSINESS BILL SHOCK. In 2012, our appointed parliamentarians incurred over $140,000 in roaming costs with our new Minister, Malcolm Turnbull, incurring bill shock to the tune of $13,000 with a major telecommunications provider. The simple rule is: if you need to use voice or data, make sure you have a plan to cover usage because inevitably, plan B or C is not always available when you need it. Casual data use that may cost $20-$30 in Australia can easily end up costing $20,000-$30,000. This paper looks at the why, what and how your company can address the need for global coverage Macquarie Telecom Pty Ltd 2

3 Why are roaming costs so high? There are over 800 mobile operators globally making it a disparate market when it comes to splitting up the estimated $30 billion that business spends on global roaming each year. Add to this an inability to regulate on a global scale and it becomes a complex economy where carriers have no capability or incentive to negotiate better rates for roaming usage. Within this economy, it is not all downside. Operators are driving retail tariff prices down across all services, with declines of up to 82% in the past 5 years. The proliferation of roaming alliances and network roaming agreements is also having an impact on selected countries but there is a long way to go. Without competition, regulation or user pushback, there is no incentive for carriers to change current pricing. In Europe, the European Commission has even stepped in to create regulations. The result is that in 2013, data rates are 35% of the value they were two years ago and these are expected to drop to 10% of the value by the end of Carriers are beginning to see the effects of price elasticity as usage increases in reaction to the drop in prices. In Australia, the Australian Communications and Media Alliance (ACMA) have introduced a standard to be implemented later this year that requires carriers to alert usage at 50%, 85% and 100% as well as increments of excess usage on data plans. While this tells you what you are using and can minimise bill shock, it doesn t address the cost of roaming or the complexity of plans. The reality is that Australia is a small player globally so we are a price taker when it comes to negotiating terms with global carriers. Without competition, regulation or user pushback, there is no incentive for carriers globally to change current pricing. THE KEY IS TO INFORM STAFF OF GLOBAL ROAMING COSTS AND DEFINE YOUR POLICIES TO MINIMISE THEM. What can you do to minimise roaming costs? There are a few simple things you can do to minimise roaming costs as well as your actual data usage: Use free Wi-Fi (wireless) hotspots wherever you can. Popular venues are airports, hotels, fast food chains, cafes, libraries and major shopping centres. If you switch off data roaming you can still access Wi-Fi. Use your phone mainly for SMS and switch off your voic . Find out your costs by country before you go Macquarie Telecom Pty Ltd 3

4 Turn off updates and notifications for apps and software. While you are away, these will continue to search for a network and use data to process. Apps such as map services or messaging services use a lot of data so use with care when overseas. Some devices like Nokia allow you to download maps in Australia and then access them without using data while overseas. Set your to only update on request. Otherwise, new mail will push to your handset and consume data. Check your when you have Wi-Fi access. Calls you receive also cost so use SMS where possible. Turn off diversions, including voic . You can leave a message on your voic advising that you are overseas and offer alternative contact methods if appropriate. Avoid downloading video or music. Above all, inform staff of the pitfalls of global roaming and clearly define company policies to minimise costs. Then what? There are other options available when looking at mobile usage overseas. SIM CARDS CAN REDUCE COSTS BUT THEY ARE INCONVENIENT TO USE. 1. Local Prepaid SIMs These are usually available at airports and newsagents on arrival. 2. Global SIMs You can now buy specialist SIM cards for roaming. While they are bit more expensive than local SIMs, they have the advantages of global coverage and you can order them before you leave Australia. The downside of these options are: SIMs are prepaid so you need to remember to top up. You get a second number so you need to maintain two numbers. While this is not an issue for data, voice and SMS are impacted. If you are visiting non-english speaking countries, all information is often in the local language and setup becomes complex. Global SIMs often rely on a call back service so you need to ring the number, wait for a message then call back. While it works, it is a bit clunky. Some SIM cards may not operate on the frequencies for your phone so make sure your device is compatible. MANY DOMESTIC GLOBAL ROAMING PACKS HAVE LIMITATIONS ON LOCATION, CARRIER, USER AND COMMUNICATION TYPE. You will need to unlock your phone if applicable. Finally, there are numerous domestic carrier options available in the market today offering global roaming packs. While offering discounts on standard rates, these are typically: Data only or voice only. Too bad if you need to order both. A 2013 study by AOTMP * found that data and voice rank equally in roaming usage Macquarie Telecom Pty Ltd 4

5 Limited to specific destinations or with caveats on some destinations or local carriers. Single user. You need to buy one per traveller and that often means buying more than you need as insurance. Single Australian carrier. If you have a mixed fleet, you need to buy one per carrier. Many of these offers are targeted at the consumer market that largely avoids using roaming so is in effect an untapped market for the carriers. In contrast, two thirds of roamers are business customers who are largely price inelastic. Carriers are building roaming plans that appeal to the consumer market but make it less appealing to business. Plan conditions such as limiting the number of days a year that roaming rates can be used, integrating roaming into domestic contracted plans and reducing the countries covered add to the types of constraints that make the plans inflexible for business. We recommend you read the terms and fine print. What sounds like a great headline can often be very restrictive and may not meet your particular criteria. How can Macquarie Telecom help? WITH OUR ONLINE MANAGEMENT TOOLS AND AN INTEGRATED PLAN ACROSS ALL GLOBAL MOBILE NETWORKS, AN AUSTRALIAN BASED PHARMACEUTICAL COMPANY REDUCED THEIR $12,000 MONTHLY GLOBAL ROAMING BILL BY 20% OVER A THREE MONTH PERIOD. Macquarie Telecom is a business only mobile provider offering unique value through a combination of choice, flexibility and control. We offer: Choice of all three networks A single, competitive, aggregated plan across three domestic mobile networks and their associated international carriers. No destinations are excluded this is a truly global plan. Flexibility of plans for mixed fleets Everyone is covered. You can change your mobile carrier, global roaming plan level, or devices and technologies within your contract with ease. More control of your mobile fleet Control global roaming with management tools that offer full visibility of your mobile traffic and spend alerts to limit excess usage. All of these benefits come together with our Global Roaming Manager plan, which can cover anyone who travels. Macquarie s Global Roaming Manager is your business insurance policy for your roaming users. We recommend you use all the tips and tricks when travelling to keep your bill as low as possible. But for those times when you need it, you want to have all your bases covered one plan across six plan levels with a generous allowance that includes voice, SMS and data no exclusions and no hidden traps Macquarie Telecom Pty Ltd 5

6 OUR USAGE ALERTS AND INTEGRATED PLAN HELPED AN INTERNATIONAL SEA TOWING COMPANY CONTROL THEIR $15,000 PER MONTH GLOBAL ROAMING BILL WHICH WAS GROWING EVERY MONTH, ULTIMATELY REDUCING COSTS BY MORE THAN 30%. It s time bring global roaming back to earth We recognise that as businesspeople you need to be connected and to communicate as necessary, whether it is a phone call, a text or an . We also recognise that whoever travels wants simplicity in communication without the need to change SIMs, reset phones, change numbers or shut down data. With our Global Roaming Manager plan, you can make it easy for every user that travels and reduce the pain of bill shock, while providing peace of mind for the business. For more information please visit macquarietelecom.com or phone our expert consultants on * Source: Mission Critical: Controlling Global Mobile Roaming, AOTMP, May Macquarie Telecom Pty Ltd 6

7 2013 Macquarie Telecom Pty Ltd 7