Verizon Wireless threw its considerable resources into the international roaming business earlier this month by expanding the availability of Samsung Corp.’s SCH-a790 Global Phone to the carrier’s non-business customers. The handset, which retails for $350 with a two-year contract, and accompanying Global Phone service, allows subscribers to use the carrier’s CDMA network in the United States and GSM-based networks overseas operated by Vodafone Group plc, which owns roughly 45 percent of Verizon Wireless.
Customers using the Samsung device overseas will pay $1.29 per minute for calls placed in most countries except for a $2.49 per minute charge when calling from Maldives, Indonesia, Sri Lanka and Latvia. Verizon Wireless also offers its International Text Messaging option that costs 50 cents to send and 5 cents to receive text messages. Calls and text messages sent from within the United States are charged according to the customer’s domestic calling plan.
Previously, Verizon Wireless customers looking to take their phone numbers with them when traveling to countries that only supported GSM-based services had to rent handsets from the carrier. Verizon Wireless continues to offer limited roaming capabilities for its CDMA customers using tri-mode or all-digital handsets in Bermuda, Canada, the Dominican Republic, Israel, Mexico, South Korea and Venezuela beginning at 69 cents per minute.
While the handset includes a camera, Verizon Wireless noted customers will be able to send pictures only when on the carrier’s CDMA-based network.
Analysts stated that the handset and service launch are important for Verizon Wireless in that it allows the carrier to target international travelers previously limited to GSM-based carriers if they wanted single-device, single-phone-number wireless solutions.
“As a result, these GSM carriers no longer have a key selling point over Verizon Wireless when selling to high-end enterprise customers,” noted Current Analysis in a research report, which added the increased competition should also lead to reduced international rates from current domestic GSM providers, including Cingular Wireless L.L.C., AT&T Wireless Services Inc. and T-Mobile USA Inc.
T-Mobile USA is regarded today by many as the leading U.S. carrier in offering international roaming services, with A.T. Kearney’s Andrew Cole, vice president and head of wireless practice, noting the carrier has managed to efficiently integrate roaming agreements with parent company Deutsche Telekom AG and provide a solid business-oriented solution from what traditionally has been a consumer-first carrier.
T-Mobile USA charges between $1 and $5 per minute for calls as part of its WorldClass offering depending on the country and claims more than 130 countries where the service will work. T-Mobile USA also offers international wireless data services in a select number of countries ranging from 1 cent per kilobyte in Canada and up to 1.5 cents per kilobyte in all other countries.
AWS and Cingular also have increased their international roaming capabilities by offering a number of tri-band and quad-band devices as well as attractive rate plans for international travelers.
Sprint PCS is expected to launch its own version of the Samsung SCH-a790 within the next several months. The offering will provide the carrier with a single-device international solution for travel to GSM countries to go along with its current roaming agreements with CDMA-based international operators.
Nextel Communications Inc. recently discontinued offering its i2000plus handset, which included both iDEN and GSM technology in one device, and now requires customers to rent a GSM-only phone for international travel. Nextel does offer international calling from a number of foreign iDEN networks, including in Canada, Mexico, Brazil, Peru, Argentina, Israel, Singapore and the Philippines, as well as its International Direct Connect service.
Despite general acclaim by analysts for Verizon Wireless offering a competitive global roaming solution, there was some criticism regarding details of its implementation.
“Verizon Wireless had the perfect opportunity to launch a highly competitive solution that would remove many of the current complexities of international roaming solutions,” Current Analysis said. “But instead, the Verizon Wireless service is a cautious first step that does not even match the current competitive solutions.”
Current Analysis singled out the offering’s pricing structure and more specifically additional “pass-though long-distance fees for incoming calls and to check and receive voice mail, which ranges from 65 cents to $1.50 or higher in a few cases” for criticisms.
“As a result, per-minute rates can rocket up to $2 to $4 for received calls, which is too high,” the analyst firm added. “Indeed, in a few cases, the total cost per minute can even hit $4 to $9.”
Others also note that the market for international roaming is still a small percentage of wireless carriers’ total revenues, and many customers who select such services or devices rarely need such functionality.
“It’s like a security blanket,” said A.T. Kearney’s Cole. “Most people don’t need it, but they want to think that if for some reason they need to travel overseas that they can stay in contact at all times.”
