To clarify the cost of airtime for Global System for Mobile communications subscribers who use their phones to roam on foreign networks, the GSM MoU Association’s global membership voted to accept the principle of an Inter-Operator Tariff (IOT).
The fee is effectively a wholesale tariff for roaming services, said the association.
The IOT will replace a more complex system of charges based on calculations that include the retail price of a foreign network’s national tariff. These costs have been known to change significantly, largely due to currency fluctuations, and at short notice, said the GSM MoU group.
Under the new system, each operator will apply a previously agreed upon tariff for a set period of time to all its roaming partners, thus enabling the home network operator to accurately predict the costs of roaming for its customers.
“The new wholesale tariffs will provide the home GSM network operator with the means to measure the cost of roaming more effectively, and therefore provide clear and concise information to customers in advance,” said Adriana Nugter, head of the GSM MoU Association.
“This new initiative will enable networks to introduce more consumer friendly pricing, promotions and incentives, enhancing the whole idea of roaming services in the eyes of customers even more,” added Nugter.
The revised charging principles will be subject to fixed periods before changes can be made-with certain exceptions such as the introduction of regulatory changes-and also upon fixed notice periods to be provided before the introduction of price revisions, added the group. The IOT of each operator also will be charged on a non-discriminatory basis.
The Association noted it has no involvement with respect to operators bi-lateral incentive offerings. The GSM MoU Association currently represents the interests of 256 GSM network operators, regulatory and administrative members from 110 countries of the world.
