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Mobile International Roaming among Arab Countries Economic Department, NTRA January, 2006 AGENDA Introduction Objectives Mobile Roaming Market Size Roaming Pricing Components Customers Perspective Regulation Suggested Solutions 2 7/6/2015 Introduction ITU-Arab Region Office - (Jan 2004) http://www.ituarabic.org/ 3 7/6/2015 Introduction Egypt Egypt's telecommunications (Fixed and Mobile) market is one of the largest growing markets in the Middle East and Africa, with an estimated total revenue of LE 16.5 billion in the year 2004. Mobile-phone provision had risen to 13 m lines by November 2005, from only 83,000 lines in 1997. In terms of mobile penetration, Egypt in 2005 stood at 18.5%. 4 7/6/2015 Objectives Our goal is to review : High roaming prices in the Arab countries State the desired Players in the Arab mobile market objective Solutions for uncompetitive prices Regulatory actions to end excessive charges for international mobile roaming 5 7/6/2015 How did we do it? Step 1 Step 2 Step 3 Collection & Filtering of Data Analyzing & Depicting of Data Comments & Explanation of Data 6 7/6/2015 Mobile Market Size There are 22 Arab countries that include 45 mobile operators 2 Counties including Comoros and Somalia didn’t declare any roaming agreements Due to lack of Data comparisons were held on 7 countries: - In Local Roaming Calls Analysis: 8 Arab Mobile operators in 5 countries including Bahrain, Egypt, Kuwait, Lebanon, and Yemen - In International Outgoing Roaming Calls Analysis: 10 Arab Mobile operators in 6 countries including Bahrain, Egypt, Jordon, Kuwait, Lebanon, and 7 7/6/2015 UAE Scope of study Study includes 2 types of International roaming: - International calls to persons in other Arab countries made while roaming abroad - Domestic (local) calls made to persons in the country of the visited network while roaming abroad. 8 7/6/2015 First: International Roamed Call Prices: An international roamed call is a call made by a subscriber roaming on a visited network to someone in another country. The called person may be a subscriber on the same home mobile network as the calling person , or a fixed network subscriber. Analysis is for International Outgoing call to home country. 9 7/6/2015 $1.00 http://www.mtc-vodafone.com.bh/ MTC Touch MIC 2 Mobilecom Fast link 10 Tunsiana Etisalat STC Syriatel Spacetel S Mobily(Etihad Etisalat) Q-Tel Nawras Medi telecom Iam(Maroc Telecom) MTC K Atheer Asiacell Mobinil $1.50 Mobilis/ATM Djezzy International Roaming Prices on MTC Vodafone - Bahrain $2.50 Iraqna $2.00 Spacetel Y $0.50 $0.00 7/6/2015 http://www.mobinil.com 11 7/6/2015 http://www.vodafone.com.eg 12 7/6/2015 $0.85 http://www.mobilecom.jo Mattel $0.90 13 $0.80 $0.75 $0.70 7/6/2015 Spacetel Y Sabafon Etisalat Tunicell Tunsiana Syriatel Spacetel S MobiTel STC Q-Tel Paltel Omantel Medi telecom Iam(Maroc Telecom) Wataniya MTC K Iraqna Asiacell Vodafone Mobinil MTC-Vodafone B Batelco Mobilis/ATM Djezzy Int'l Roaming Prices on Mobilecom - Jordon $1.00 $0.95 Batelco $1.00 Omantel Syriatel Tunicell Q-Tel STC $0.50 $0.00 Wataniya to Kuw ait http://www.wataniya.com 14 7/6/2015 Spacetel Y $1.50 Iam(Maroc Telecom) $2.00 Paltel Etisalat Al-Madar MTC Touch MIC 2 Fast link Asiacell WTA(Nedjma) Mobinil $2.50 Vodafone International Roaming Prices on Wataniya Kuwait http://www.mtc.com.kw 15 7/6/2015 International Roaming Prices on MTC Touch Lebanon $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 MTC Touch MTC-Vodafone B Mobinil Vodafone http://www.mtctouch.com.lb Asiacell Fast link 16 MobiTel Tunsiana 7/6/2015 $1.50 $1.00 http://www.alpha.com.lb Iraqna Mobilecom Omantel Medi telecom Iam(Maroc Telecom) Wataniya MTC K Umniah Vodafone Mobinil Asiacell Fast link Nawras Express $2.00 MTC-Vodafone B Batelco $2.50 Mobilis/ATM 17 Etisalat Tunicell $0.50 $0.00 Alpha 7/6/2015 Spacetel Y Sabafon Tunsiana Syriatel Spacetel S MobiTel Mobily(Etihad Etisalat) Q-Tel STC $3.00 Djezzy International Roaming Prices on Alpha Lebanon $3.50 $0.40 http://www.etisalat.com.ae Mobily(Etihad Etisalat) MTC K Iraqna 18 STC Q-Tel Etisalat 7/6/2015 Spacetel Y Sabafon Syriatel Spacetel S MobiTel Nawras Omantel Mauritel Mattel Al-Madar Wataniya $0.60 Medi telecom Vodafone Mobinil Asiacell Batelco $1.00 Iam(Maroc Telecom) MTC-Vodafone B $0.00 WTA(Nedjma) $0.20 Mobilis/ATM $0.80 Djezzy International Roaming Prices on Etisalat UAE $1.20 $1.00 http://www.sabafon.com Wataniya MTC K Mobilecom Fast link $0.50 19 $0.00 Sabafone 7/6/2015 Etisalat Tunicell Tunsiana Syriatel STC Mobily(Etihad Etisalat) Q-Tel Nawras Omantel MobiTel Medi telecom Asiacell Vodafone Mobinil MTC-Vodafone B Batelco $2.00 Iam(Maroc Telecom) Express $1.50 Mobilis/ATM $2.50 Djezzy Internatioal Roaming Prices on Sabafon Yemen $3.00 Second: Local Roamed Call Prices: A local roamed call is a call made by a subscriber roaming on a visited network to another person in the country of the visited network. The called person may be: -A mobile subscriber of the visited network -A mobile subscriber on another licensed mobile network in the same country - A fixed network subscriber in the same country 20 7/6/2015 Lo M ob cal in il N W Vo da fo ne M TC W at an M TC iya To uc h Al ph Sa a ba fo ne $ Batelco 2.00 1.50 1.00 0.50 0.00 21 7/6/2015 Sa e on e a Lb n n Lb Kw t EG Ym n h uc Al ph To l W ca il N on in M TC da f ba f M TC Vo M ob Lo US$ MTC Bahrain 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 22 7/6/2015 Sa 23 on e a r l Lb n n Lb Kw t Kw t Bh ca Ym n h uc iya Al ph To ba f M TC W at an M TC M TC Lo US $ Mobinil 1.20 1.00 0.80 0.60 0.40 0.20 0.00 7/6/2015 Sa 24 on e a l Lb n n Lb Kw t Kw t ca Ym n h uc iya Al ph To ba f M TC W at an M TC Lo US $ Vodafone EG 1.20 1.00 0.80 0.60 0.40 0.20 0.00 7/6/2015 on Sa 25 on e a Lb n n Lb Kw t Kw t Ym n h uc i ya Al ph To ba f M TC G EG il E l n ca Bh e in M TC da f W at an Vo M ob M TC Lo US $ Fast link Jordan 1.20 1.00 0.80 0.60 0.40 0.20 0.00 7/6/2015 MTC Kuwait 0.30 0.25 US $ 0.20 0.15 0.10 0.05 0.00 Local Mobinil Vodafone EG EG MTC Touch Lbn 26 Alpha Lbn Sabafone Ymn 7/6/2015 Sa 27 on e a n Ym n n Lb Eg Lb e l g ca il E h uc on in Al ph To da f ba f M TC Vo M ob Lo US $ Wataniya Kuwait 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 7/6/2015 on Sa 28 on e a Lb n n Lb Kw t Kw t Ym n h uc a iy Al ph To ba f M TC g Eg il E l n ca Bh e in M TC da f W at an Vo M ob M TC Lo US $ IAM/Maroc 1.20 1.00 0.80 0.60 0.40 0.20 0.00 7/6/2015 on Sa 29 on e a Lb n n Lb Kw t Kw t Eg Ym n h a uc Al ph To ba f M TC iy l g ca il E e in M TC da f W at an Vo M ob Lo US $ Omantel 0.60 0.50 0.40 0.30 0.20 0.10 0.00 7/6/2015 on Sa 30 on e a Lb n n Lb Kw t Kw t Eg Ym n h a uc Al ph To ba f M TC iy l g ca il E e in M TC da f W at an Vo M ob Lo US $ Q-Tel 0.60 0.50 0.40 0.30 0.20 0.10 0.00 7/6/2015 ca M l ob in il E Vo da g fo ne Eg M TC W Kw at an t iy M a TC Kw To t uc h Lb Al n ph a Sa Lb ba n fo ne Ym n Lo US $ STC Saudi 0.60 0.50 0.40 0.30 0.20 0.10 0.00 31 7/6/2015 Sa 32 on e a Eg g l Lb n n Lb Ym n h uc e il E ca M TC on in Al ph To da f ba f M TC Vo M ob Lo US $ MobiTel Sudan 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 7/6/2015 Vo on Sa 33 on e a Lb n n Lb Kw t Kw t Eg g Ym n h uc i ya Al ph To ba f M TC l Al g ca il E e in M TC da f Lo TA ) M ob m a( W W at an Ne dj US $ Tunisie Telecom(Tunicell) 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 7/6/2015 on Sa 34 on e a Lb n n Lb Kw t Kw t Eg Ym n h uc Al ph To ba f M TC iya l g ca il E e in M TC da f W at an Vo M ob Lo US $ Etisalat UAE 0.60 0.50 0.40 0.30 0.20 0.10 0.00 7/6/2015 Sabafon Yemen 0.35 0.30 US $ 0.25 0.20 0.15 0.10 0.05 0.00 Local Mobinil Eg Vodafone MTC Touch Alpha Lbn Eg Lbn 35 7/6/2015 Roaming Pricing Components Wholesale pricing vs. Retail pricing (End-users) 36 7/6/2015 First: Wholesale roaming: Inter Operator Tariff (IOT) 1. Mobile originated calls 2. Mobile terminated calls 37 7/6/2015 Inter Operator Tariff (IOT) Definition Application Duration Changes in IOT 38 7/6/2015 1. Mobile originated calls Charged by who? VNW Pricing Factors: - Destination - Timing - Unit - Terminated NW 39 7/6/2015 2. Mobile terminated calls Charged by who? VNW Pricing Factors (Free as incoming roaming is usually zero priced) 40 7/6/2015 Second: Retail roaming: 1. Mobile originated calls 2. Mobile terminated calls 41 7/6/2015 1. Mobile originated calls Who charges it? HNW On what basis? (IOT+ Handling Charges) Who pays for it? Calling PP 42 7/6/2015 2. Mobile terminated calls Who charges it? HNW On what basis? IOT Who pays for it? Calling PP local rate vs. Called PP pays for roaming part of the call 43 7/6/2015 Customers Perspective Prices charged for mobile users are unsatisfactory . Hardly anybody knows the details of the different roaming charges and they can be very difficult to find. They are also changed frequently. The prices differences between different networks are vast, even within the same country. 44 7/6/2015 Regulation we conclude that causes of high charges are : Absence of real competition Absence of regulation of roaming Strong disincentive on operators to negotiate lower prices Fragmented nature of the market reducing the purchasing power of users B.T.E. facing alternative operators 45 7/6/2015 Questions & Surveys There are questions that need to be answered by the operators to home regulators: -Subscribers' roaming traffic volume (minutes of usage) -Routes of Calls ( to which roaming partners) - Price trends in the period of 1998-2005 - Roaming subscribers segmented into prepaid and postpaid * Only then regulators can make the necessary studies and forecasts. 46 7/6/2015 Benefits of the Study Targeted Free Competition among the operators Lower Prices offered to customers More Cooperation among the Arab regulators for the sake of mobile users Encouraging attractive Roaming price offers for Prepaid customers. 47 7/6/2015 Suggested Solutions Improving Public Awareness: Launch a section on ARNET website on roaming prices in the Arab region. To be updated every 6 months supported by regulatory bodies in the Arab world, for transparency and awareness reasons. Each Regulator review IOT of its home country operators, to ensure fairness and consumer welfare. 48 7/6/2015 Both IOT and retail share the same bulk of costs (mobile access and core network). IOT has extra cost not applicable for retail. Retail has extra cost not applicable for IOT Both IOT and ‘Retail of Visited NW’ should be the same. 49 7/6/2015 Proposed solution A regulated imposed inter-Arab IOT rate (regulation driven) Volume-Rate tradeoff deals using the OTA technology (competition driven) Enabling the Optimized Routing and billing users accordingly (fairness driven) 50 7/6/2015 References http://www.gsmworld.com/index.shtml http://www.ituarabic.org/ http://www.mobinil.com http://www.vodafone.com.eg http://www.wataniya.com http://www.batelco.com.bh/ http://www.mtc-vodafone.com.bh/ http://www.etisalat.co.ae http://www.spacetelyemen.com/ http://www.mtctouch.com.lb http://www.mobilecom.jo http://www.mtc.com.kw/ http://www.alfa.com.lb http://www.sabafon.com Tariffica CD 2004 51 7/6/2015 Questions & Comments 52 7/6/2015 Thank You January, 2006