To understand why data roaming is so expensive, we first need to answer: what is data roaming? We have the official definition below, but believe an infographic is easier to understand. So we’ve prepared one:
Now, the Wikipedia definition:
Roaming is a general term referring to the extension of connectivity service in a location that is different from the home location where the service was registered. Roaming ensures that the wireless device is kept connected to the network, without losing the connection.
There are two types of roaming:
- National – to the ability to move from one mobile operator to another in the same country, such as from T-Mobile to O2 (in the UK). National roaming is more dependent on regulatory actions than business partnerships or market demand.
- International -the ability to move to a foreign (country) service provider’s network. International roaming is easiest using the GSM standard, as it is used by over 80% of the world’s mobile operators.
From this point onwards, by ‘roaming’ we mean ‘International Roaming’.
So, now that we’ve nailed the definition, WHY is data roaming so expensive?
Roaming is expensive because, simply put – it involves two carriers, located in different countries, without any regulatory acts nor provisions. The hassle of making your smartphone work abroad falls on the visited carrier, which unlike the home carrier, couldn’t care less about you. You are not their subscriber – don’t want to pay the premium of roaming? Don’t use your phone. The story of data roaming is expensive because the entire roaming cost is incurred by the subscriber instead of being covered by the carrier.
Roaming is made possible due to a vast maze of contracts negotiated on a carrier-by-carrier basis. If you’re with AT&T traveling to Europe, AT&T has signed contracts with almost every European carrier (at least one per country), to ensure its subscribers will be able to use mobile services while abroad – voice, text and data. And those contracts are not governed by a centralized regulator, because there isn’t one: US works under FCC, EU under DG Infso, Australia under ACMA, and so forth.
Will it get better?
Maybe. Depends where you live. The EU was the first authority to legislate Regulation on roaming on public mobile telephone networks within the Community (Regulation (EC) No 717/2007, PDF), which aimed on reducing roaming prices for subscribers travelling within the European Union. However, when it comes to internet services and data, 717/2007 only regulates at the operator’s level, not the subscriber’s (retail). Meaning – the EU has determined a maximum price the visited operator can charge the home operator, but not a maximum price for the consumer.
And the lack of global regulation (among others) is what’s causing bill shock stories like Nilofer‘s one:
A solution!
That’s where Onavo comes to the rescue, and why we’ve decided to develop the technology that will change the way subscribers and carriers alike perceive data roaming.
March 08, 2011 at 11:04 am, Michael said:
I still don’t get it.
You claim to save up to 80% of the roaming charges. Had Nilofer used your solution, he still would have paid a minimum of $2000.
Buying a local SIM card, something he could have done in every airport kiosk, would have reduced his costs to around $50 or so.
So where’s the beef?
March 08, 2011 at 10:26 pm, guy.rosen said:
I’ll chime in here to add that Nolifer’s unfortunate incident is a result of ending up paying the carrier’s pay-as-you-go costs. The real moral of the story is to be prepared. Getting a data roaming plan from AT&T would set you back something in the vicinity of $100, and then you can squeeze so much more out of it with Onavo.
March 08, 2011 at 11:13 am, Dvir Reznik said:
Thanks for the comment Michael.
Onavo provides a solution for consumers who rely on their smartphone for business, and as such, cannot replace SIM cards – for convenience or technological reasons. Indeed, buying a local SIM is the cheapest solution, and since Onavo works the same for domestic (3G is 3G) – still wise to use Onavo.
Reading about Nilofer, I believe she would opt for Onavo with AT&T over purchasing a local SIM.
March 13, 2011 at 12:55 am, Why is international data roaming so expensive? - Quora said:
[...] consumers alike. There's also a cool infographic explaining 'what is data roaming': http://blog.onavo.com/2011/03/wh…2:55pmView All 0 CommentsCannot add comment at this time. Sunil Tagare, Founder of [...]
March 22, 2011 at 7:15 am, Kannan said:
Hi,
I think this is a cool idea – thanks for this. Some questions:
Is the Onavo profile active all the time (even when I am not roaming)? Also, it is kind of spooky to think all my mobile internet traffic is passing through Onavo proxies. What is the (geek & layman) explanation for security concerns (particularly for emails that don’t have additional encryption)? In what ways are the data collected from my internet usage used?
Thanks!
March 22, 2011 at 7:24 am, Kannan said:
Please ignore previous comment. I got the answers from your FAQ page. Thanks!
March 22, 2011 at 12:10 pm, Dvir Reznik said:
Hi Kannan,
Thanks for the comment – glad you liked it!
If there’s anything else you want to know, drop us a line: info at onavo.com.
Cheers
January 17, 2012 at 2:35 pm, Global Roaming said:
I wish to convey my admiration for your kind-heartedness supporting people that need help with this study. Your very own dedication to getting the solution all-around became especially effective and have continuously helped people much like me to get to their dreams.
July 13, 2012 at 1:11 pm, Droam said:
There is another solution called Droam. We make hardware you can use as a mobile hotspot. Worth mentioning I thought
November 01, 2012 at 11:49 am, International data roaming for $20 a MB! Why? said:
[...] to Onavo, which develops apps that help you monitor your mobile data usage and bill, the problem is [...]
November 01, 2012 at 3:06 pm, International data roaming for $20 a MB! Why? | Partners In Sublime said:
[...] to Onavo, which develops apps that help you monitor your mobile data usage and bill, the problem is [...]
November 02, 2012 at 8:37 am, International data roaming for $20 a MB! Why? | My GSM said:
[...] to Onavo, which develops apps that help you monitor your mobile data usage and bill, the problem is [...]
November 03, 2012 at 5:50 am, International data roaming for $20 a MB! Why? | GADGETNUZ said:
[...] to Onavo, which develops apps that help you monitor your mobile data usage and bill, the problem is [...]
April 13, 2013 at 12:45 am, Staying Connected While Traveling & Avoiding Roaming Rates | Keep Calm and Factory Data Reset... said:
[...] destination, the first thing you need to do is go into your phone’s settings and make sure Data Roaming is NOT enabled. Then you want to make sure that your data (also knows as mobile network) is OFF. [...]