Mobile broadband providers risk losing revenue

An IT security firm has stated that some mobile broadband providers risk losing revenue over strategies relating to downloading data whilst abroad

According to officials from an IT security firm, AdaptiveMobile, a number of mobile broadband providers are at risk of losing significant levels of revenue as a result of their planned strategies in relation to downloading data through mobile broadband services whilst abroad. The firm has accused these providers of taking too simplistic a view over their strategies, and has said that they could lose a lot of revenue from customers that are willing to pay for a high quality roaming service whilst abroad.

Officials from the firm claim that some mobile broadband providers are toying with the idea of banning all users from downloading data through their mobile broadband service whilst abroad, as they want to avoid breaching new EU regulations.

However, a strategy such as this could result in the loss of custom for many of these providers, with customers unwilling to sign up to a service where they are not able to use such a facility. The firm added that providers needed to control their network assets more efficiently so that a bespoke service could be offered to users based on their needs.

One official from the security firm stated: “Whilst operators understandably don’t want to be perceived as trying to unfairly glean excess revenues from unwitting subscribers while abroad, taking a ‘one size fits all’ approach blocking their usage while abroad will result in them losing very significant revenues, at a time when you would expect them to be looking to maximise their 3G network investments.” He added: “Even though there is the suggestion that subscribers would be able to lift the block, for a high proportion, this would be too disruptive and operators would never maximise their average revenue per user.”