Is affordable global roaming finally coming?

Angus Kidman16 July 2008, 3:00 PM

After years of being rorted for telephone and data charges every time we leave the country, Australians might finally be in line for some decent deals when they travel.


Pressure is mounting for more reasonable global roaming packages.

A longstanding rule of thumb for Australians travelling with their mobile phone is to use it as little as possible and only send text messages if you do have to get in touch with someone. Overseas texting isn't necessarily cheap relative to local deals, but with a fixed cost it's one of the few ways to avoid a hideously shocking bill when you get home. (The other option is to purchase a cheap SIM at your destination, but then you lose the convenience of having your own number.)

Relief from this situation may finally be at hand. An investigation by the House of Representatives Communications Committee into international roaming began in late May. The committee will investigate whether current charges reflect actual costs to service providers, if consumer information on roaming is adequate, and if new technology could help lower those costs. If you want to make a submission to the committee before the August 15 cut-off date, you can find details here.

A campaign for lower costs has also been launched by the Australian Telecommunications User Group (ATUG) to help inform the investigation. "There is no legitimate reason why it costs end users many, many times more to make a call or send an SMS or access the web when they are travelling than when they are at home," ATUG said in a press release campaigning for better prices. "It is time for end users to tell their 'bill shock' horror stories and for the Australian Government to act." The group is holding public meetings across Australia during July to collect war stories, and has also set up a blog for people to share their experiences.

Other countries are also pushing for less expensive travel communications. In the European Union, carriers are not allowed to charge excessive fees for voice services between member countries, and pressure is growing to regulate data charges as well.

Of course, government recommendations can take some time to have any impact, especially in the telecommunications sector. However, there are some small signs that carriers are offering slightly better deals in this space, especially for data users.

For existing data users, Vodafone offers its broadband roaming packs. While these aren't cheap ($49 a month for 25MB or $199 a month for 120MB), that's still a lot lower than its casual overseas rates, and a good deal for travelling in Europe. For Asian travel, Optus' Bridge Alliance data roaming packs cover 10 local countries and are cheaper than Vodafone, but offer slightly lower limits (15MB for $40 or 40MB for $80).

To date, carriers have generally resisted lowering data charges, if only because cheap mobile broadband makes it possible to use VOIP services such as Skype and thus cuts revenue from calls. And if they believe they can sell a service at a high price, they will — as Optus' charges of $149 a month for a 1GB iPhone data plan (compared to $89 for 850MB) demonstrate all too clearly.


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pmx (User):

I think that the costs are so high because they can be.

The real target for mobile roaming customers are business users who take their own laptop and mobile and need to use them while overseas.

The other option for connecting your own laptop while overseas are casual hotel rates which are more expensive for business users that the telco's roaming packages.

Tourist can go to internet cafes which are cheaper.


16 July 2008, 3:20 PM (1 year ago)report abuse Send to a friend reply

agami (User):

Good old capitalism.

It's all about about what it's worth to 'you'. What are 'you' prepared to pay for it? And they'll keep charging 'you' the same price despite the costs going down, up until a new technology adoption starts threatening their lofty profit stream.

16 July 2008, 4:23 PM (1 year ago)report abuse Send to a friend reply

John Kins (New user):

I use one of these GeoSIM Global SIMs when ever I travel. Admittedly I have to have a UK number, but the savings I have made are huge. The great think is I use the same networks that are overcharging "everyone else". It proves that cheap roaming is possible. I got mine from www.globalsimcard.co.uk

16 July 2008, 5:47 PM (1 year ago)report abuse Send to a friend reply

Tin (Senior Forumologist):

Given that most local telcos have operations in other countries too, you'd think they'd have some half decent rates in "popular" countries.

Like "agami" says, it's just down to what people are willing to pay before they won't use it. And in a way, I think that's fair enough... Though simply billing people after the fact is a bit much when the charges are over inflated just for extreme profit.

16 July 2008, 8:17 PM (1 year ago)report abuse Send to a friend reply

McBanjo (User):

Economists call this your reservation price. They want to sell something to you at the highest amount you are willingly to pay for it. If you can afford to travel overseas a lot, you can afford the expensive rates. Without government intervention, the prices will only go down when international flights and the cost of bouncing between countries goes down. But for now there is very little profit or market for cheap, global roaming.

17 July 2008, 2:45 PM (1 year ago)report abuse Send to a friend reply

JB747 (New user):

"If you can afford to travel overseas a lot, you can afford the expensive rates." That's a bit of a leap. I travel to Europe or the USA roughly twice per month....it's called work, but I don't have any fancy expense account - all charges come out of my pocket. Basically I never turn my mobile phone on when overseas, so the telcos make zero $ out of me. Free, or cheap, internet is pervasive, so I can happily keep in touch without helping Sol's bottom line.

18 July 2008, 8:57 AM (1 year ago)report abuse Send to a friend reply

fonsica (New user):

I have traveled to the UK many times and have always used my cell phone. Every time I come back I regret having used it. On my last trip to London I rented a Smartphone with www.Fonmigo.com. I paid local rates and it came with a free Internet package. I recommend it.

19 February 2010, 11:33 PM (1 month ago)report abuse Send to a friend reply

fonsica (New user):

I have traveled to the UK many times and have always used my cell phone. Every time I come back I regret having used it. On my last trip to London I rented a Smartphone with www.Fonmigo.com. I paid local rates and it came with a free Internet package. I recommend it.

19 February 2010, 11:33 PM (1 month ago)report abuse Send to a friend reply

fonsica (New user):

I have traveled to the UK many times and have always used my cell phone. Every time I come back I regret having used it. On my last trip to London I rented a Smartphone with www.Fonmigo.com. I paid local rates and it came with a free Internet package. I recommend it.

19 February 2010, 11:36 PM (1 month ago)report abuse Send to a friend reply

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