Friday, March 27, 2020

Roaming Revenue Logically is at Some Risk When Travel is Down

The Covid-19 pandemic could cost communications service providers over $25 billion in lost revenue during the next nine months, mostly from lower roaming revenues, according to Juniper Research.

The research assumes that over half of all roaming revenue for the year will be affected, amounting to $25 billion in lost revenue. The research also highlighted the period between June and August as of particular significance when the demand for international travel is high. It forecast that operators could lose up to $12 billion in roaming revenue alone in these three months.

In terms of the overall impact on operators, it must be noted however that global roaming revenue only accounts for approximately 6% of total operator-billed revenue per year, limiting the hit on the industry.

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