Report: Strategic insights on international Wi-Fi roaming services for carriers

Wednesday, May 1st, 2013 Brian Metzger, Sr. Marketing Mgr, Carrier Services

Consider these facts:

International travel is now at an all-time high, and poised for further growth:
The United Nations World Tourism Organization (UNWTO) reports that international tourist arrivals exceeded 1 billion for the first time ever in 2012, equating to 3.8% year-on-year growth from 2011. Furthermore, the volume of international travel is set for robust growth again this year, with the UNWTO forecasting an increase of 3-4% in 2013. Since each international trip represents a potential roaming event, the market for international Wi-Fi roaming has never been greater.

Wi-Fi is the primary network for smartphones and tablets:
According to studies conducted by Informa Telecoms & Media in partnership with Mobidia, Wi-Fi accounts for between 65% and 85% of total smartphone-originated data traffic, depending on the device model and the subscriber’s country of residence.

International travelers are carrying multiple smartphones:
According to a recent iPass survey on international data roaming, 98% of respondents own at least one smartphone, and over one-third (33.8%) of respondents travel with two or more. High levels of smartphone adoption were recorded across all geographies, including key emerging markets such as Brazil, India and China.

And, there is a rise of Wi-Fi exclusive devices:
There has been rapid growth in the adoption and usage of Wi-Fi-only devices (such as tablets) among international travelers. According to Informa Telecoms & Media forecasts, more than 162 million tablets will be shipped in 2013, of which around three-quarters (74%) are expected to ship with Wi-Fi as the only form of connectivity.

Given all the facts above, there has been considerable momentum behind partnership-based approaches to international Wi-Fi roaming on behalf of Communication Service Providers (CSPs). This momentum can be attributed to two key market drivers:

1. Accelerate the availability of attractive international-Wi-Fi roaming services
CSPs that can bring differentiated Wi-Fi roaming propositions to market early can exploit first-mover advantage, and capture the demand that exists among international travelers for an improved roaming experience. By partnering with Wi-Fi aggregators, CSPs can accelerate the availability of new Wi-Fi offers and avoid the hefty investment inherent in a do-it-yourself approach.

2. Leverage the best practice learned from Wi-Fi aggregators
By leveraging the best practice that Wi-Fi aggregators have learned from their existing partnerships and market development, CSPs can mitigate the risk of making costly mistakes and improve their likelihood of commercializing propositions with proven market potential. The support offered to CSPs by Wi-Fi aggregators in areas such as application development, marketing strategy and proposition building form a key part of the value of a partnership-based strategy in international Wi-Fi roaming, and are important reasons why more and more partnership deals are being struck.

With over a dozen cited examples of CSPs that are in market with International Wi-Fi roaming services, along with specific insights on market strategy, commercialization models and messaging, the new iPass/Informa whitepaper, “International Wi-Fi Roaming | Winning Strategies to Construct Wi-Fi/Cellular Data-Roaming Offers for Retail Subscribers,” is a must read.

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Tags: carriers, wi-fi access