Internet Telephony (VoIP) as a Solution to High Roaming Charges in International Calls 

Until recently, telecom companies were like King Midas—everything they touched turned to gold. Today, the gold has turned to bronze, and with the news of the abolition of roaming charges, the king is shouting and protesting, hoping to continue plundering his subjects for at least another year. 

Telecom companies are getting poorer. Rates have significantly decreased due to both regulatory decisions and a price war among operators. Therefore, telecom companies are seeking new revenue streams by partnering with other entities and offering financial, energy, or television services. They are also defending roaming charges at all costs, as these remind them of the good old days when making a fortune required little effort. It is already clear that this year, which was supposed to be the last for high international call charges, certainly won’t be. Everything indicates that the charges won’t be abolished until 2018 at the earliest. Of course, this deadline may be postponed again, as has often happened in the past. It’s hard to give up a treasure chest that fills with gold with every minute a customer spends calling abroad. 

Telecom companies argue that abolishing roaming charges will lead to higher telecommunications service prices. They claim they need to compensate for the losses incurred from the abolition of roaming. Without a doubt, roaming is a goldmine, and its absence will be felt by telecom companies. However, not to the extent they claim. Moreover, it’s hard to consider companies generating a billion PLN in annual profit as poor. Worldwide, it’s evident that telecom companies are investing in new services, modernizing, and expanding networks. In short: they can afford rapid development, and the lack of roaming charges won’t change that. This is and will continue to be a profitable business. 

The paradox of maintaining roaming charges is very evident in the inter-operator market. Today, about 30% of wholesale market calls are made via VoIP technology. What does this mean in practice? It means that when a customer calls from abroad, they often connect using internet telephony without even realizing it. Informing customers about this is not in the telecom company’s interest. By admitting this, the operator would acknowledge, first, that they use a technology they officially speak of with distance, and second, that they are overcharging an unaware customer. Calling from Egypt to Poland from a mobile phone can cost a customer up to 10 PLN per minute. Using internet telephony, it would cost only a few cents. Calculate the operator’s profit yourself. 

Do you still have any doubts about the validity of maintaining roaming charges? When reaching for your phone on vacation, don’t let the operators take you for a ride…