Addressing New Opportunities in the Roaming Ecosystem

Madrid, 5 Octubre 2023. – Today’s roaming ecosystem is seeing a number of changes that dramatically alter how service provider approaches must be taken. On the one hand, networks that have supported mobile connectivity for 30 years are beginning to be phased out. On the other hand, expectations from mobile services end-customers are changing as a result of new technologies and demands in terms of quality-of-service (QoS).

Network sunsets signal a knock-on effect

With the establishment of LTE and the growth of 5G networks, the MNO ecosystem is increasingly planning to sunset 2G and 3G networks to reduce costs and free up valuable spectrum. The impact of these legacy network closures will be far-reaching for the roaming ecosystem.

Figure 1: 2G & 3G Network Closures 2020-2030

In the first instance, the issue of maintaining continuity of voice services is a particularly pressing issue, given that loss of 2G or 3G circuit-switched voice services results in an incomplete roaming experience if appropriate measures are not in place. Within a roaming context, this means that acceleration of VoLTE roaming agreements is a key topic, given the reliance on both traditional roamers as well as IoT roaming devices, such as connected vehicles, to use voice services.

Meanwhile, as sunsets accelerate, IoT devices historically deployed using 2G or 3G radios will require support from modern Radio Access Technologies. Some of these devices will leverage LTE Cat1/Cat1 bis, although a significant proportion of customers will look towards NB-IoT or LTE-M for low bandwidth, low-cost connectivity. This means that the expansion of NB-IoT and LTE-M roaming agreements is paramount in the coming years, in addition to a migration from Transferred Accounting Procedures (TAP) to Billing and Charging Evolution (BCE ) for effective wholesale monetisation.

Roaming customer demand shifts require new approaches

The maturation of eSIM for mobile connectivity signals an important shift in how service providers must approach the market. 

The travel industry is now well on the road to recovery post-COVID-19, with this coinciding with an increase in eSIM support across the mobile device ecosystem. Travel SIMs, which previously had popularity in regions such as Asia, are growing in demand as a consequence of MNO retail pricing strategies and availability of travel eSIMs via simplified digital procurement processes. This presents both an opportunity and a threat to operators’ roaming revenues, given the ease with which eSIMs can be activated on smart mobile devices. 

Figure 2: Travel SIM/eSIM Stickiness 2023

In the IoT sphere, enterprise customers are becoming increasingly sophisticated: they are well aware of long-term risks associated with roaming at a regulatory and commercial level. Meanwhile, a key pain point among customers is the need to engage with several providers for international requirements. Providing assurances against such concerns will require a flexible approach, with robust and cost-effective commercial agreements for roaming in addition to eSIM support for long-term risk mitigation, delivered through a single pane of glass.

Best-efforts roaming is not always best

Traditional roaming and utilisation of ‘best efforts’ home-routed architecture have long formed the bedrock of international cellular connectivity services. As the market moves towards 5G and more complex customer requirements, new flexibility in the service model is required. Overall, applications in the consumer and IoT domain will increasingly benefit from low latency services: according to Kaleido Intelligence’s survey data, 93% of MNOs and MVNOs have, or have had customers that expressed a desire for low latency roaming. 

Figure 3: Application Demand for Low Latency Roaming

Regional or local breakouts offer a solution to this challenge, in addition to helping overcome certain regulatory constraints that restrict the international flow of generated and consumed mobile data. However, this is not necessarily a simple service execution, and requires a strong global presence to address requirements in multiple domains and regional markets; in some instances, localisation of the connectivity through eSIM of local IMSI access will be required. Above all, flexibility will be paramount.

******************

La nueva era del 5G ya está aquí, está tomando impulso y trae nuevas oportunidades, a la vez que genera nuevos desafíos. Poder contar con un socio con experiencia que te ayude a afrontar los cambios en el mercado y los diversos escenarios permitirá a los operadores el aprovechar estas nuevas y excitantes oportunidades.

Telefónica Global Solutions (TGS) es un Carrier Tier 1 con muchos años de demostrada experiencia en la prestación de servicios de roaming extremo-a-extremo, tanto a los OBs y socios del Grupo Telefónica como a operadores de nivel 2, 3 y MVNOs, que se benefician de nuestra escala, pericia en roaming y redes, y acuerdos de roaming globales.

No estás sólo en el camino. Con nuestra solución Global Connect Hub podemos proporcionar una conectividad global instantánea, a través de los donantes de IMSIs de tanto Telefónica como de nuestros socios T1, tanto para acceso local como para responder a las necesidades de regulación específicas. Con una sola conexión, puedes abrir todo el mundo, sin mencionar la posibilidad de impulsar tu negocio IoT y de consumo contando con las oportunidades que traen los nuevos casos de uso VoLTE y LPWA.

Lo mejor de todo es que ya estamos preparados por 5G, lo que implica que tu lo puedes estar también. Entendemos las tecnologías involucradas y nuestras soluciones ya están adaptadas para 5G Non Standalone. Así mismo, hemos comenzado a hacer pruebas de 5G Standalone para algunos de nuestros servicios roaming, lo que nos hace ser un socio ideal.

No tienes que confiar sólo en nuestra palabra. TGS ha sido reconocido como Champion 5G Roaming Vendor en el informe más reciente de Kaleido Intelligence, identificándonos como uno de los proveedores mejor posicionado para habilitar 5G Roaming para operadores, por lo que puedes tener la confianza de estar en las mejores manos.

Contacta con nosotros para descubrir cómo podemos ayudarte en tu camino hacia 5G Roaming.

By Kaleido Intelligence