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Leader: Roaming rates - more work needed
Because business travel is not a choice

By silicon.com

Published: Wednesday 14 February 2007

It is fitting that in this week of the annual 3GSM World Congress a major mobile network operator has chosen to announce lower data-roaming rates.

T-Mobile is halving its prices. But looking more broadly, one thing is clear - more needs to be done.

Operators are wary of EC pressure to push down these rates, which are incurred when using a connection for a voice call or data connection in a country other than one's own. They would rather make changes ahead of any regulation.

At the UK Communication Management Association last week, a remark on roaming rates still being too high for UK business received a spontaneous, loud round of applause from attendees, most of whom represent the telecoms function within their companies.

The view is that business travel isn't a choice, almost any time it takes place, and businesses are hit harder than most.

This publication agrees unreservedly. Of course, it is important operators aren't squeezed too hard at every turn but for some, who have spent years building up an international presence through wholly owned or partner networks, surely this reach is a differentiator.

Listen to a lot of the debate - especially out of Brussels - or ad campaigns and it is easy to view this as a consumer issue - about texting from beaches, perhaps.

But a look back at recent announcements shows data rates over cellular - over 3G datacards or slower connections, often for WAP surfing over handsets - are still exorbitant.

Is the fear that if limits aren't put on data users they will leave connections open indefinitely? Surely that's like saying everyone will use gigabyte-plus webmail because it's offered. In reality, only a few people do.

And who would want an always-on mobile internet experience when speeds are still so much better over fixed broadband lines?

It is fine that users pay a premium for mobile calls abroad, as long as it is a fair mark-up. But the real battle for businesses is a fair rate for data charges, especially over 3G.

An operator that cracks that equation - decent service with a reasonable cap and reasonable prices - will walk away with the prize.

Who knows, we might even stop looking for wi-fi in overseas hotels too, just as we gave up hotel room phones years ago.