Most of us have used roaming while traveling abroad at some point, often incurring high charges. But how does roaming actually work behind the scenes? Shlomo Wolfman from Starhome spoke with TelecomsTech this week and shared several key insights.
Shlomo Wolfman: Roaming accounts for roughly 10% of an operator’s average revenue. Roaming refers specifically to subscribers using their mobile devices on a foreign network while outside their home country, not to ordinary international calls.
The technical basis that enables roaming was largely developed by the GSM industry and relies on established standards. Compared with some other technologies, such as CDMA, the GSM-based roaming framework is relatively straightforward. Nonetheless, it depends on bilateral or multilateral agreements between operators to function smoothly.
Within most countries you will typically find around five GSM operators. Between two countries there can be many possible roaming agreement pairings. Each operator aims to maximize revenue by securing as many agreements as possible across the widest range of countries.
Today, a typical operator maintains between 400 and 600 roaming agreements spanning more than 100 countries. For example, when you arrive in the UK and switch on your phone, your device will usually register to the appropriate local network automatically. Behind the scenes, wholesale and discount agreements allow networks to optimize traffic and costs while delivering the best possible service to roaming customers.
Companies like Starhome provide the products and services that make roaming work—covering connectivity, system integration, and agreement management. They also support traffic optimization, business management systems, and data analytics to help operators run their roaming businesses efficiently.
Data usage has become far more important than voice or SMS. Many users still avoid data roaming because they cannot easily predict how much data they will consume: voice calls and SMS costs are relatively straightforward, but data usage is more opaque. Starhome and similar vendors offer solutions that help operators give subscribers tools to monitor and control their data consumption while roaming, reducing bill shock and improving customer experience.
TelecomsTech: What do you think about the European Commission’s plans to eliminate roaming charges? Could that be sustainable?
Shlomo Wolfman: Over the past five years, Europe has been the only region where regulators have successfully implemented new roaming regulations. In most other regions, cross-border commercial agreements among operators limit regulators’ ability to impose new rules, leaving regulators with limited power over roaming charges. Personally, I view Europe increasingly like a single market, where eliminating roaming fees is a logical policy direction.
TelecomsTech: It must be challenging for vendors to comply with differing regulations imposed by individual national regulators. Would a single regulator simplify compliance?
Shlomo Wolfman: Regulatory divergence creates complexity. For example, we recently learned that one Latin American country proposed forcing operators to automatically disable roaming for customers when they travel abroad. Policies like that, which vary by country, complicate the work of vendors and operators alike.
TelecomsTech: How much impact do OTT (over-the-top) applications have on roaming?
Shlomo Wolfman: OTT services have been transformative. Until recently, operators viewed Skype, WhatsApp and similar services—particularly those that disrupted SMS revenue—as adversaries. However, many leading operators, including Vodafone, Orange and Telefónica, have shifted their perspective and now see OTT services as both a challenge and an opportunity. Today we increasingly see operators branding or even owning OTT-like applications as part of their service portfolios.
Starhome’s products and solutions are designed to help operators manage roaming connectivity, commercial agreements, traffic optimization and customer-facing controls. Their tools aim to balance cost management for operators with transparency and control for consumers.
What are your thoughts on the current state and future direction of the roaming industry?