Monday, June 15, 2015

90% of U.K. International Travelers Rely on Wi-Fi, 11% Roam

Ways in Which UK Travelers Access the Internet During Overseas Trips, March 2015 (% of respondents)Most international travelers rely heavily on Wi-Fi access when abroad for one simple reason: it saves them lots of money.

Of course, that also means some mobile apps, including navigation and maps, photo and social apps get used only in tethered mode (when in a Wi-Fi zone), and not on a “mobile” basis.

In a recent study by TNS for Webloyalty, about 90 percent of U.K. travelers abroad reported using Wi-Fi. Just 11 percent said they used mobile connectivity.  

And while it might be rational behavior for some mobile operators to maintain high prices for roaming users, some mobile operators could earn more money by offering lower prices.

So far, most carriers have resisted calls to drop roaming prices.

That is an issue for mobile service providers who might prefer lower roaming rates. Retail prices must incorporate all underlying costs, and the price of roaming access is set by domestic carriers. So mobile operators whose customers roam onto those international networks have to pay whatever the prevailing rates might be, passing the costs along to customers.

Releasing more spectrum for Wi-Fi (5 GHz) might help somewhat, particularly as Wi-Fi networks become more dense, and can be federated.

Still, the clear trend for mobile data roaming is towards lower prices, over time, as seen in the EU, for example.


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