Ignacio Bergallo
Telefonica Argentina
Seminario sobre los aspectos económicos y financieros de las telecomunicaciones
Grupo Regional de la Comisión de Estudio 3 para América Latina y El Caribe (SG3RG-LAC)
Sesión 12: Propuestas para mejorar la Itinerancia en la Región
1. Servicios de roaming internacional en Latinoamérica TELEFÓNICA Dirección de Relaciones Institucionales Regulatorias Julio de 2010
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3. ¿Qué es el roaming internacional? 01 El servicio de roaming internacional posibilita a los clientes la continuidad del servicio fuera del país de origen, utilizando los recursos de la red visitada en el exterior. Home Public Mobile Network Visited Public Mobile Network Operador A Red de origen (HPMN) Red visitada (VPMN) Roamer Red de origen a la cual el cliente está suscripto Red visitada en el exterior a la cual el cliente de la red de origen accede Roamer Cliente del operador A usando los servicios de la red visitada en el exterior. Dependiendo del tipo de suscripción en la red de origen, el cliente podrá acceder a diferentes servicios de roaming (voz, mensaje y datos). País Origen Operador B País Visitado
4. Tipos de llamadas en roaming internacional 01 País Visitado Tercer País País Origen Roamer Destino Fijo Destino Móvil Destino Fijo Destino Móvil Llamada país origen Llamada tercer país Destino Fijo Destino Móvil Llamada dentro país visitado Llamada saliente Llamada entrante El servicio de roaming internacional posibilita a los clientes la realización de llamadas salientes y entrantes (voz y SMS) dentro del país visitado, al país origen o a un tercer país.
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7. 01 Se estima que el mercado regional de roaming internacional es de cerca de U$S 343 millones Tráfico de roaming internacional Millones de minutos Ingresos por roaming internacional Millones de U$S El roaming internacional representa menos del 1% de los ingresos totales del mercado de servicios comunicaciones móviles de la región, mientras que en Europa este valor alcanza el 5% (U$S 15.000 millones en 2007) 36% 3% 49% 48% 64% Fuente: IIRSA / Value Partners Ingresos por roaming internacional Millones de U$S ~44 X
8. 01 El servicio prepago tiene una alta penetración en la región alcanzando en promedio el 82% del total. Penetración servicio prepago Como el servicio de roaming internacional opera en redes de operadores de otros países (VPMM), no es factible la utilización de los recursos de gestión de crédito de la red home (HPMM), con lo que por lo general el servicio de roaming internacional no se habilita para estos clientes. CAMEL es una solución (impulsada por la GSMA) que permite la gestión de los prepagos. En la región el servicio prepago creció al 35% en promedio en los últimos años y representa mas del 90% del mercado en Surinam, Bolivia, Venezuela, Guyana y Paraguay. El éxito creciente del prepago se apoya en su alta flexibilidad de consumo y su accesibilidad para los sectores de menores ingresos que progresivamente se incorporaron a la base de suscriptores. Fuente: IIRSA / Value Partners
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13. El mercado muestra características particulares Viajeros 01 Viajeros dentro la región % del total de población El volumen de viajeros en Latinoamérica es significativamente menor que en otras regiones. El 37% de los viajeros son de negocios (3.8 millones) y representan entre el 80% y el 90% del trafico de roaming. El 54% del trafico de viajeros se concentra entre tres principales rutas. Brasil, Ecuador y Uruguay son importadores netos de viajeros. Fuente: IIRSA / Value Partners ~14 X
14. El mercado muestra características particulares Zonas de frontera 01 Solo el 4% de la población total se encuentra en zonas de frontera. Cinco ciudades concentran la mayor proporción de habitantes aunque etas ciudades poseen grandes áreas suburbanas y rurales. Alto nivel de penetración de servicio prepago en las localidades de frontera (cercano al 90%) Fuente: IIRSA / Value Partners
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17. Índice 01 El negocio del roaming Internacional en Latinoamérica 02 Regulación del roaming internacional Europa Iniciativa IIRSA 03 Implementación de mejoras en el servicio de roaming internacional 04 Conclusiones
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20. Mercados muy diferentes Funte: GSMA 02 Mientras que existe un marco regulatorio común europeo, en Latinoamérica no existe un organismo regional con las competencias necesarias para regular el servicio Latin America Factor Europe Implication for roaming market Very low ($6K) GDP / capita High ($34K) • Travel and roaming services are less affordable for consumers Developing destination Tourism / Business Number 1 global destination • Roaming services are driven by business and tourism flows Very low Economic integration High • Economic integration is a driver of roaming traffic as well as a facilitator of intra - regional coordination Low (28/sq.km) Population Density High (115/sq.km) • Operators concentrate on the 80% of population that are in urban centres. Roll - out to rural areas is highly costly. Medium (67%) Mobile penetration High (112%) • Higher penetration = generally, higher roaming 85% prepaid Contract type Pre & post - paid • At this stage, few LA operators could enable pre - paid mobile users to roam USD 12 ARPU USD 30 • ARPU in Latin America is about a third of that in Europe Latin America Factor Europe Implication for roaming market Very low ($6K) GDP / capita High ($34K) • Travel and roaming services are less affordable for consumers Developing destination Tourism / Business Number 1 global destination • Roaming services are driven by business and tourism flows Very low Economic integration High • Economic integration is a driver of roaming traffic as well as a facilitator of intra - regional coordination Low (28/sq.km) Population Density High (115/sq.km) • Operators concentrate on the 80% of population that are in urban centres. Roll - out to rural areas is highly costly. Medium (67%) Mobile penetration High (112%) • Higher penetration = generally, higher roaming 85% prepaid Contract type Pre & post - paid • At this stage, few LA operators could enable pre - paid mobile users to roam USD 12 ARPU USD 30 • ARPU in Latin America is about a third of that in Europe Economic factors Mobile market characteristics
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23. Índice 01 El negocio del roaming Internacional en Latinoamérica 02 Regulación del roaming internacional Europa Iniciativa IIRSA 03 Implementación de mejoras en el servicio de roaming internacional 04 Conclusiones
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28. Zonas de frontera 03 Se produce cuando el usuario, sin salir de su país de origen, es captado por alguna red del país vecino. A partir de ese momento las redes interpretan que el usuario entró en roaming internacional con lo que las comunicaciones son tasadas a los valores de este servicio. Roaming inadvertido Coordinación de frecuencias y adecuada planificación de antenas en ambos extremos de la frontera (acuerdos bilaterales). Requiere de la participación de las autoridades regulatorias de ambos países. Resolución Mercosur (Argentina, Brasil, Paraguay y Uruguay). Adecuada comunicación al cliente, avisando del cambio de red y del procedimiento para volver a la red origen. Gestión ecuánime ante las reclamaciones de usuarios. Propuesta de algunos Reguladores a fin de establecer un tratamiento diferencial en cuanto a precios para los habitantes en zona de frontera. Tratamiento diferencial En análisis por parte de los operadores. Dimensionamiento adecuado del mercado. Solución técnica más adecuada.
29. El fraude tiene importante impacto en el servicio 03 Los casos de fraude suponen entre el 3% y el 5% de los ingresos de los operadores, y de estas perdidas un 25% corresponden a los producidos en escenarios de roaming. El mayor riesgo de fraude en roaming es debido a la demora en el intercambio de la información entre los operadores. El intercambio de los CDRs entre los operadores para llamadas de roaming demoran hasta 24 horas. Algunos operadores no intercambian CDRs durante los fines de semana. Heterogeneidad de las redes dificulta la integración de los sistemas de prevención, detección y respuesta automática. El fraude afecta principalmente al operador de la red originante. Las rutas hacia países sin garantías de colaboración no son habilitadas por el riesgo de este tipo de fraude. Implementación del sistema NRTRDE (Near Real Time Roaming Data Exchange) que permite el intercambio de la información prácticamente en tiempo real (4 horas vs. 24 horas.), en los acuerdos de roaming de las operaciones de Latinoamérica. Debilidades Del modelo
30. Índice 01 El negocio del roaming Internacional en Latinoamérica 02 Regulación del roaming internacional Europa Iniciativa IIRSA 03 Implementación de mejoras en el servicio de roaming internacional 04 Conclusiones
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Notas del editor
Key messages Apart from the taxation and ILD cost burdens, the industry is also contending with interoperability challenges caused by the existence of different network technologies and different GSM spectrum frequencies Network coverage is another technological challenge as operators continue to roll-out their networks (especially 3G networks) Pre-paid roaming is a major opportunity but the costs involved with the technology required to make it happen are substantial There are several GSM frequencies in use (TBC with operators): In EU GSM is standardised to 900 Mhz or 1,800 Mhz In North America, standard is 1,900 Mhz Some Latam operators choose to follow Europe and others North America Brazil & Costa Rica use 1,800 Mhz Argentina, Bolivia, Colombia and Mexico use 850 Mhz and 1,900 Mhz Uruguay uses 850 Mhz, 1,800 Mhz and 1,900 Mhz Peru uses 900 Mhz and 1,900 Mhz Chile uses 1,900 To go from one country to another you need a high-spec handset (and these are expensive)
Key messages: The international call component is a very important element in roaming calls given that the majority of roamers make calls back home Apart from the tax burden, ILD termination costs are another cost component which is out of the control of operators which inflates end-user prices Low traffic volumes combined with, in some cases, international gateway monopolies, result in low bargaining power on price and quality Additional data points: The volume of mobile-terminated international traffic in Latin America increased 38% in 2005 and 27% in 2006 – indicating that this problem should continue to correct itself over time however in the meantime this is still a source of concern for operators whose costs and service levels are impacted by this lack of bargaining power Research by GSMA has found that the introduction of competition into the international gateway market can reduce call prices by up to 90% and double call volumes (example of Nigeria)
Actualización Bruselas 20/02/09: Members of the ITRE committee discussed the amendments tabled to the draft report on Roaming II on 17 February. The rapporteur, Mrs Valean, rejected proposals to shorten the Regulation and to amend the price caps, as she finds the Commission’s proposals to be balanced in this regard. She also rejected as a matter of principle any amendments on retail price caps for PSD, and welcomed proposals on non-discrimination and reciprocity. MEPs will now work towards finding compromises between the various positions ahead of the committee vote on 9 and 31 March. There is to be a split vote in order to allow the Parliament to carry out negotiations with Council between the two dates, so that a compromise might be found which could be agreed at first reading. It appears that a deal might be emerging among MEPs to introduce a safeguard cap of 50c per MB, in exchange for a shorter Regulation. Telefonica will be meeting Council representatives in order to discuss the practical impossibility of implementing many of the obligations by July 2009. Actualización Bruselas 27/02/09: Telefonica has met with officials from the Parliament and Council as MEPs are preparing for the votes in committee in the coming weeks. Compromises have been put forward by the rapporteurs on the main issues, but many do not adequately take our concerns into account. We have been stressing the need for sensitivity on the implementation efforts the revised Regulation will require, and hope to see this reflected in revised compromises. The IMCO vote is to take place on 2 March, with the ITRE vote split into two sections (9 and 31 March), in order to allow some time for informal discussions with Council. Actualización 13/03/09 The Industry committee voted on the Roaming II proposals on 9 March, with MEPs supporting a mixed set of amendments: - Wholesale caps glidepath ends in 2011, keeping to original reductions - Retail caps glidepath ends in 2010, keeping to original reductions - 30+1 charging increments allowed at wholesale level, but not at retail - SMS caps of 4 cents (wholesale) and 11 cents (retail) supported - PSD wholesale cap dropped to €0.50/MB (aggregated per KB) - Voicemail receipt to be free, but from July 2010 (and not July 2009) The committee did not vote on transparency, relying instead on the vote from IMCO which was held last week (see last Weekly Report). Discussions now begin with Council, with an aim to achieve compromise before 31 March, when the ITRE committee will finalise its position. Telefonica is working on the remaining priorities which could still benefit from lobbying. The focus is now on putting pressure on governments during the three week period up to the vote. - No possibility of a set up charge - No charge for receipt of voicemail (applicable from July 2009) - Cumbersome transparency requirements - No restriction on ability to choose network - Reporting on quality and speed of data connections
Actualización Bruselas 20/02/09: Members of the ITRE committee discussed the amendments tabled to the draft report on Roaming II on 17 February. The rapporteur, Mrs Valean, rejected proposals to shorten the Regulation and to amend the price caps, as she finds the Commission’s proposals to be balanced in this regard. She also rejected as a matter of principle any amendments on retail price caps for PSD, and welcomed proposals on non-discrimination and reciprocity. MEPs will now work towards finding compromises between the various positions ahead of the committee vote on 9 and 31 March. There is to be a split vote in order to allow the Parliament to carry out negotiations with Council between the two dates, so that a compromise might be found which could be agreed at first reading. It appears that a deal might be emerging among MEPs to introduce a safeguard cap of 50c per MB, in exchange for a shorter Regulation. Telefonica will be meeting Council representatives in order to discuss the practical impossibility of implementing many of the obligations by July 2009. Actualización Bruselas 27/02/09: Telefonica has met with officials from the Parliament and Council as MEPs are preparing for the votes in committee in the coming weeks. Compromises have been put forward by the rapporteurs on the main issues, but many do not adequately take our concerns into account. We have been stressing the need for sensitivity on the implementation efforts the revised Regulation will require, and hope to see this reflected in revised compromises. The IMCO vote is to take place on 2 March, with the ITRE vote split into two sections (9 and 31 March), in order to allow some time for informal discussions with Council. Actualización 13/03/09 The Industry committee voted on the Roaming II proposals on 9 March, with MEPs supporting a mixed set of amendments: - Wholesale caps glidepath ends in 2011, keeping to original reductions - Retail caps glidepath ends in 2010, keeping to original reductions - 30+1 charging increments allowed at wholesale level, but not at retail - SMS caps of 4 cents (wholesale) and 11 cents (retail) supported - PSD wholesale cap dropped to €0.50/MB (aggregated per KB) - Voicemail receipt to be free, but from July 2010 (and not July 2009) The committee did not vote on transparency, relying instead on the vote from IMCO which was held last week (see last Weekly Report). Discussions now begin with Council, with an aim to achieve compromise before 31 March, when the ITRE committee will finalise its position. Telefonica is working on the remaining priorities which could still benefit from lobbying. The focus is now on putting pressure on governments during the three week period up to the vote.
The South American Roaming market should be allowed to continue to develop unhindered. Tariff regulation is ony a very last resort. The industry is undertaking initiatives to move the market forward The mobile market is young and emerging The mobile industry in LatAm is generally still in a growth phase, with the market expanding rapidly in terms of subscriber numbers and ongoing investments in national infrastructure and new services and technologies The market is predominantly pre-paid (~85%) In South America, less than 3% of the population travel abroad, and hence only very small proportion use roaming services. 80-90% of these are business customers The south America mobile market has unique characteristics The characteristics which are inherent to the Latin American market (e.g. Low income / capita, substantial distances between major cities, limited intra-regional tourist travel) result in only a small demand for roaming services, which make the region fundamentally different to other more developed roaming markets (e.g. EU) Practical reality is that you need to be able to afford a plane ticket in order to be able to roam (due to the substantial distances between city centres) GDP per capita in Latin America at USD 6252 is a quarter of GDP per capita in the EU (USD 33831) and around 15% of that in North America (USD 45451). [Source: Convergencia] Economies in the different countries within Latam are at very different stages of economic development – some are still incredibly poor while others are now comparable to more developed nations Mobile market also differ significantly with some markets experiencing European levels of penetration while for others, mobile ownership is still very much a new services with low take-up Hence the extent of roaming usage and its relevance as a service vary extensively across the region. This will have an impact on pricing models, for example, the balance of roaming tariffs vs national call tariffs Also, the impact of any proposed regulation will vary significantly from country to country and operator to operator. There is no cohesive common legal and regulatory framework – varying national implementations could distort, rather than encourage, further development of roaming services The roaming market in SA is facing challenges Different parties are involved in the end to end delivery of roaming services. ILD is an important element in nearly all roaming calls, given that the majority are calls back home Hence QoS and pricing of the ILD element of the call is a key driver The taxation burden on roaming services is very high in SA, and can constitute up to 70% of the final retail price paid by the consumer Hence important, when analysing the roaming sevrices, to look at the total picture in aggregate The industry is also contending with interoperability challenges caused by the existence of different network technologies and different GSM spectrum frequencies Network coverage is another technological challenge as operators continue to roll-out their networks (especially 3G networks) Pre-paid roaming is a major opportunity but the costs involved with the technology required to make it happen are substantial, and require significant operator resources But industry is taking the lead Industry continuously investing in a range of projects to rollout and improve roaming services and infrastructure – will be covered further in technical presentation Pricing innovation and transparency initiatives are propelling the market forward. Operators are launching for example flat rate fees. For example Movistar Argentina launched the Tarifa Simple Simplified and easy to understand roaming tariff supported by an explanatory website One global tariff offered with flat rates for all destination with. Voice calls cost $1,99 and an SMS costs $0,29 General Arguments against regulation Threat to innovation Countries have different cost basis making it inefficient to implement a single price cap that fairly represents underlying costs leading some operators to have to supply services at below cost High cost of implementation of regulation can hamper investment as operators have to redeploy resource Regulation can be highly discriminatory as its effects vary significantly depending on the characteristics of mobile operators and the markets they operators in Regulation of a properly functioning market takes unnecessary money out of industry and economy Regulation threatens to define an outcome for a set period of time which can be damaging as the roaming market is sensitive to wider economic pressures that change constantly Impact of Consumers Price caps can set an artificial price ceiling and remove incentive to innovate which reduces consumer choice Customers select tariff plans based on a range of characteristics not just roaming. Regulation has the potential to create a waterbed effect Currency fluctuations and exchange rates can distort price caps Lack of legal structure Without a common legal framework the enforcement of a common regulation across countries is impossible