International mobile data roaming: Managed or unmanaged?

Interconnection is a fundamental pre-requisite for International Mobile Roaming (IMR). With the emergence of an all-IP architecture for mobile, operators have started adopting GRX/IPX as the next generation interconnection network model (managed model) to carry the entire home-routed IMR traffic. The “person-to-person” nature of traditional IMR services such as voice and SMS meant that all or most communications occur between one or more end-users across operator networks for which a managed model is very effective and essential. However, with the growing popularity of Internet-based services such as VoIP, Instant messaging and social networking, which are largely “person-to-application” by nature, the alternative deployment model of visited network-based IMR via public Internet (unmanaged model) looks increasingly feasible vis-à-vis the dominant home-based managed model. In this context, the paper highlights the emerging relevance of the open unmanaged model for NGIMR. Our analysis shows that adoption of the unmanaged model will be technologically and economically feasible in a situation when Internet-based service offerings from online players contribute to the majority of data usage of a roaming consumer. Though, the final realization of this model will depend on operator's willingness as long as they control the access networks. The paper also discusses the role of regulators in this context.