Why do mobile roaming prices vary by the home country of your mobile phone, when a long way from home?

Why do mobile roaming prices vary by the home country of your mobile phone, when a long way from home? - Side view of young brunette with long hair in white nightwear lying on belly in comfortable bed under blanket and using mobile phone in morning at home

I can understand that if you have two mobile phones, one from (say) the UK, and one from (say) India, then the price for roaming is likely to be very different between them when you're in a country near one and far from the other. It would seem to make sense that when in Nepal, roaming calls from an Indian mobile would be cheaper than from a UK mobile, as it's much closer to one than the other.

However... If you're a long way from "home" from both mobiles, one might naively assume that the roaming fees would be pretty similar.

On a recent trip from the UK to India, I was changing planes in the Middle East. While there, I turned on a UK mobile, and an Indian mobile, to check for travel updates. The Indian mobile had a basic pay-as-you-go deal, while the UK one had a package to offer lower-than-normal roaming rates. Despite this, and despite being a long way from both the UK and India, my UK phone wanted ~ USD $2/minute for calls and USD $8 for 10MB of data. On the other hand, the Indian mobile offered 100MB of data for free, and calls from USD $0.20/minute.

Why is it that the naive idea isn't right, and when a long way from home, mobile roaming prices vary so much by where you have come from?



Best Answer

The rates depend on the contracts between service and network providers. These will of course vary based on the companies involved and depend in part on the expected amount of traffic set down in the contracts.
It's like any other business deal, higher volume tends to make for lower prices per unit, especially as the overhead (administration cost etc.) per unit is lower for the contract partners.
Thus 2 large providers in countries with a lot of mutual traffic can negotiate lower roaming fees than 2 small ones from countries with a small amount of traffic.

Of course there can also be politics involved (like the EU forcing providers to charge below cost roaming rates for traffic generated inside the EU, with the result that rates for all other traffic generated by EU customers go up to compensate for the losses the networks incur from roaming customers).




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How do I reduce roaming charges?

Our Tips & Tricks to Avoid Roaming Charges
  • Check roaming rates. ...
  • Compare different plans. ...
  • Turn on the Wi-Fi. ...
  • Restrict your time on the Internet. ...
  • Send text messages. ...
  • Download a data monitor. ...
  • Get a Prepaid SIM Card or eSIM.


  • Why roaming charges are so high?

    Roaming charges are so high because telecom providers can charge each other as much as they want. The lack of competition leaves no incentive for operators to charge low fees to each other. These inter-operator fees are then passed onto you in high roaming fees.

    How do I avoid roaming charges on Android?

    Go to Settings \u2013 Mobile Data \u2013 Data Roaming \u2013 make sure the button is switched to 'Off'. Android phone users should disable data roaming at Settings>Mobile Networks. Android users should go to Settings>Data usage, and tap on the three dots on the top-right of the screen, then select \u201cRestrict background data\u201d.

    Is there extra charge for roaming?

    Roaming allows you to make calls, send texts, and use wireless data even when you're outside of your network's boundaries. The downside, of course, is that roaming data usually comes with extra charges to your account.



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    Images: Miriam Alonso, Eren Li, Eren Li, Eren Li