MNOs set to lose out on $25bn of roaming revenues, as Covid19 pandemic begins to bite

New research suggests that roaming revenues will be all but decimated by the Coronavirus pandemic for the next 9 months
Roaming, Operators, Data, Covid19

Share

Mobile network operators around the world could miss out on up to $25 billion in roaming revenues over the next nine months, as international travel is grounded during the current Covid19 pandemic.

New research, published by Juniper Research, analysed two prospective outcomes for the Covid19 pandemic – one moderate impact and one high impact. Juniper Research did not forecast a low impact outlook, such is the severity of the current situation.
Juniper Research’s high impact scenario assumed that there will be reduced demand for international travel and regional travel bans for the next nine months.  

In this high impact scenario, Juniper Research estimates that over 650 million passenger trips will be cancelled over the next 9 months – 80 per cent of all air travel forecast for the period.

The research assumes that over half of all roaming revenue for the year will be affected, amounting to $25 billion in lost revenue.

The June-August period, which usually sees tens of millions of Europeans take their summer holidays, is expected to be a particularly difficult period, with operators set to miss out on around $12 billion of roaming revenues in that 12 month period alone.  

Fortunately, from an operators’ point of view, roaming revenues typically only make up around 6 per cent of a telcos projected yearly revenues.

Despite this sliver of consolation, the report suggests that operators will have no ability to mitigate the loss of roaming revenues, given the ubiquitous nature of the pandemic.

“Given the nature of the international travel industry, the research anticipated there will be no strategies available to operators to mitigate this loss. It forecast that services, such as virtual conferencing, will offer businesses an alternative to international travel, but will offer no benefit to operators,” the report read.

Editor's Choice

Emerson expands analytics platform for industrial enterprise-level wireless infrastructure management
Plantweb Insight platform adds two new Pervasive Sensing applications that manage wireless networks more efficiently with a singular interface to the enterprise
Digitalisation seen as a competitive advantage by Middle East private businesses
Nearly 80 per cent of private business leaders acknowledge that digitalisation can impact business sustainability
Etisalat introduces Multi-Access Edge Computing architecture delivering best-in-class video streaming performance for 5G networks
MEC architecture achieves performance gains of as much as 90% in video streaming, validating how ultra-low-latency applications will be delivered over 4G and 5G networks

Most popular

Don't Miss a Story