Contents

Summary

Report 1 Benchmarking study and consumer advice on roaming between the UK and Ireland

Report 2 Consumer awareness of mobile roaming

Summary

S.1 This document contains two Oftel research reports. One of these reports benchmarks prices for international roaming in Ireland and the UK and the other report examines consumer awareness of these prices. These reports are part of a joint study with the Irish regulator, the ODTR. The ODTR has published similar benchmarking and consumer research reports for the Republic of Ireland, which can be found at www.odtr.ie.

S.2 In September 2001, Oftel published Effective competition review: mobile. In this review, Oftel suggested that competitive pressure on roaming prices was not evident and low consumer awareness of price may be one of the reasons why international roaming prices were maintained at levels much higher than other types of mobile call.

S.3 In November 2001, Oftel carried out further international benchmarking work on international roaming prices and found that UK prices for consumers roaming abroad were:

• substantially higher than elsewhere for pre-pay consumers and on average more than double the prices in Italy and Sweden; but
• lower, on average, than elsewhere for post-pay consumers.

S.4 Oftel believes that for competition to be effective consumers must be well informed and able to take advantage of competition. Well informed consumers that shop around for the best deal increase competitive pressure on prices. In December 2001, Oftel started work with the ODTR (the Republic of Ireland is a popular destination for UK consumers) on a joint study of the link between consumer awareness and price, including an examination of consumers’ awareness of options to reduce their roaming bills.

S.5 The objectives for the joint study were to:

• publish more specific consumer advice on the options available to reduce roaming bills;
• raise consumer awareness, encouraging consumers to shop around and increasing competitive pressures on roaming prices; and
• compare prices and awareness in the UK with prices and awareness in Ireland, studying the link between consumer awareness and price.

Results: benchmarking

S.6 Four different profiles were used to represent:

• a UK residential consumer taking a two-week holiday in Ireland;
• an Irish citizen (with a UK mobile phone) working/studying in the UK, returning home to Ireland for a weekend once a month;
• a UK business consumer visiting Ireland once a month; and
• a Northern Ireland resident working in Ireland, commuting daily across the border.

S.7 Depending on the individual consumers’ usage of mobile roaming, the benchmarking report shows that it is possible for consumers to reduce their roaming bills by:

• changing from pre-pay to post pay tariffs;
• using international traveller services;
• diverting or barring incoming calls;
• using SMS rather than voice calls for quick messages;
• selecting a different Irish network to roam on;
• swapping the SIM card in their phones.

In some cases, by taking advantage of these options, the savings for consumers could be substantial.

S.8 A comparison of Irish and UK prices did not reveal a clear picture of roaming prices in the UK relative to Ireland but prices in the UK and Ireland can be considered, on average, to be broadly similar.

Results: consumer awareness

S.9 Oftel examined consumer awareness of roaming prices in Great Britain and Northern Ireland and the options available to reduce roaming bills by commissioning market research surveys. Of consumers in Great Britain who had ever used their phones abroad:

• 69% of consumers claim to be aware of roughly or exactly how much it costs to use a mobile abroad; however,
• 16% of these consumers were not aware that they are charged for incoming calls when using their mobile phones abroad; and
• only 52% of pre-pay customers are aware that they pay for incoming calls when abroad.

The results above suggests that consumer awareness may be lower than indicated by the percentage of consumers claiming to be aware of price.

S.10 Consumer awareness of options to reduce roaming bills is very low, although about half of consumers claim to be aware that sending an SMS can be cheaper than a voice call. It must be remembered, however, that SMS as an alternative to a voice call is useful only in the limited circumstances when a short message can substitute for a two-way voice call.

S.11 Oftel’s research also showed that consumer satisfaction with roaming prices is very low:

• 16% UK mobile roaming customers were satisfied with the cost of making calls while abroad;
• around one in 10 (11% in Great Britain and 9% in Northern Ireland) customers claim to be satisfied with the cost of receiving incoming calls when roaming.

S.12 The ODTR also carried out market research on consumer awareness of roaming prices and options to reduce roaming bills and found similar results to Oftel – there is much room for improvement in consumer awareness of mobile roaming prices and in particular, the options for reducing mobile roaming bills. The ODTR’s results show that in Ireland, consumer satisfaction with roaming prices is similar to that of the UK.

Conclusions

S.13 The very similar results for the UK and the Republic of Ireland (in terms of price and awareness of price) do not allow firm conclusions to be made on the link between price and consumer awareness. However, the low consumer awareness results, in particular the low percentage of pre-pay consumers aware that they are paying for incoming calls, are cause for concern and justifies action to provide more specific advice for consumers on the cost of using their mobile phones abroad.

S.14 Both Oftel’s and the ODTR’s Irish results show that:

• consumer satisfaction with roaming prices is low; and
• consumer awareness of the options to reduce roaming bills is low.

S.15 These results suggest that initiatives to raise consumer awareness, particularly of the options available to reduce roaming bills would be useful. Informed consumers, shopping around to search for the best deal may increase competitive pressure on roaming prices.

Consumer advice

S.16 As a result of the above conclusions, Oftel has published specific advice for UK consumers on the options available to reduce roaming bills (Getting the best deal when using your mobile phone abroad, Oftel April 2002). This advice shows the range of prices that consumers pay for international roaming and the offers advice on the potential savings available various options available to consumers wishing to reduce roaming bills. A summary of this advice is shown in tables 1 and 2 below.

Table 1: What UK consumers pay to use their mobiles in the Irish Republic

Figures are based on peak time calls at February 2002 prices, off-peak calls are slightly less

S.17 The best option for reducing roaming costs will always depends on an individual’s usage pattern. In addition, savings on some options may impact on domestic prices (for example, changing from pre-pay to contract tariffs). Customers on some UK networks may not make any savings from using some of the methods, so all figures below give averages for those customers who can make savings.

Table 2: Average savings available to UK consumers in the Irish Republic

Next steps

S.18 In the future, Oftel will continue to monitor consumer awareness of roaming prices and will consider further initiatives to draw consumers’ attention to the level of prices and ways to reduce roaming bills. Oftel will also continue to engage in the debate at a European level, with the European Commission and other NRAs on the pros and cons of more formal regulation of international roaming prices.

S.19 The new EU Directives encourage closer working between NRAs. Oftel is pleased that in advance of the new Directives, Oftel and the ODTR have formed a working relationship that will be useful to both regulators in the future.

Disclaimer: The purpose of these reports is to advise UK consumers on using their mobile phones abroad. They are not intended to be quality of service reports. The reports should not be seen as a recommended buyer's guide to mobile services in the UK and Ireland. Any reference to a company should not be seen as endorsing that company or any services that company may provide. It should not therefore be relied upon when making purchase decisions. While Oftel considers the data in the report to be accurate and up to date at the time of publication, Oftel accepts no liability in respect of any of the information and data provided to it by the companies reported on, or any decisions taken by any person in reliance on the report.

Benchmarking study and consumer advice on roaming between the UK and Ireland

A report by Oftel, part of the joint ODTR and Oftel study on mobile roaming

Contents

Key results

Chapter 1 Introduction

Chapter 2 Advice to UK consumers when roaming in Ireland

Chapter 3 Costs for UK consumers roaming in Ireland

Chapter 4 Costs for Irish consumers roaming in the UK

Chapter 5 Comparison of costs for UK consumers vs Irish consumers

Appendix A Details of methodology

Appendix B Tariff data used

This study looks at prices for international roaming for UK consumers travelling in Ireland and for Irish consumers travelling in the UK.

Key results

1 The least cost option for a UK consumer using a mobile phone in Ireland depends on the pattern of usage, or calling ‘profile’. The most important options that should be considered have been evaluated for four different profiles (which are detailed in the report). A summary of the key findings are shown in table 1. This shows:

• roaming tariffs for pre-pay consumers are more expensive than tariffs for post-pay (or contract) consumers – regular travellers may find it worthwhile switching from a pre-pay to post-pay tariff (though this decision needs to be based on domestic as well as roaming usage). Savings on roaming costs from switching from pre-pay to post-pay are likely to be in excess of 30% – and may well exceed 50%;
• using an international traveller service (ITS) may save money for post-pay consumers, especially if their usage is relatively high – a consumer with the business profile (profile 3) can save up to 38% by doing this;
• receiving calls can be expensive – up to £1.50 a minute for pre-pay consumers and up to £0.94 a minute for post-pay consumers – and consumers costs can be reduced by getting incoming calls barred or diverted;
• sending one SMS message is cheaper than a one minute voice call – and, unlike voice calls, receiving SMS messages is free – the consumer will need to consider if an SMS is a suitable alternative to a one minute call;
• selecting the Irish network that is used can save money, depending on the tariff the consumer is on – the difference between cheapest and most expensive network was found to be 30% in one case;
• buying an Irish SIM can save money for regular travellers – savings well in excess of 50% were found for pre-pay consumers (profiles 2-4) and in excess of 25% for post-pay consumers with higher usage (profiles 3 and 4).

Table 1: Most important options for different UK consumer profiles

Key:

££ = Consider this, it may well save money
£ = Possibly this may save money - savings are very dependent on individual circumstances
- = This is unlikely to be worthwhile for a one-off visit

In all cases this advice is indicative – the best option will depend on individual circumstances

Disclaimer

2 The purpose of this report is to raise consumer awareness of different mobile roaming tariffs in the UK and the Republic of Ireland. It is not intended to be a quality of service report. The report should not be seen as a recommended buyer's guide to mobile services in the UK and Ireland. Any reference to a company should not be seen as endorsing that company or any services that company may provide. It should not therefore be relied upon when making purchase decisions.

3 The report covers all roaming offers from the four network operators in the UK and the three network operators in Ireland. It does not cover offers from service providers in either the UK or Ireland, and does not, therefore, cover all of the roaming tariffs available to consumers. However, the report does cover most of the tariffs available. The tariffs shown in this report may be subject to change.

4 This report is based on information and data provided to Oftel by the companies reported on. Oftel has conducted its own checks on the data in this report. While Oftel considers the data to be correct, Oftel accepts no liability in respect of any of the information and data provided to it by the companies reported on or any decisions taken by any person in reliance on the report.

Chapter 1

Introduction

1.1 This report studies the prices for UK mobile phone users wishing to use their mobile phone while visiting Ireland, and for Irish mobile phone users wishing to use their mobile phone while visiting the UK.

1.2 This study has been prepared by Oftel. The ODTR has published a similar report for the Republic of Ireland which can be found at www.odtr.ie.

1.3 Oftel believes that for competition to be effective, consumers must be well informed. Oftel’s most recent consumer awareness report shows that although 69% of GB consumers using their mobile abroad claim to know roughly or exactly how much roaming costs, 38% of these consumers who use their phones abroad do not know that they are charged for incoming voice calls. 52% of GB pre-pay consumers do not know that they pay for incoming voice calls. This benchmarking report shows that incoming calls on pre-pay tariffs can be up to £1.50 per minute.

1.4 Consumer satisfaction with the price of using roaming is low, only 14% of GB consumers using their phone abroad are satisfied with the price for roaming but only 43% of these consumers have tried ways to reduce their roaming bills and most consumers are unaware of the range of options available to them. Oftel hopes that its more specific consumer advice, supported by the benchmarking report, will prompt consumers to try new ways of reducing their roaming bills and shop around for the best deal available.

1.5 The report is based on a snapshot of tariff data which is valid as of February 2002.

1.6 The rest of the report contains the following chapters/annexes:

• chapter 2: advice to UK mobile phone users visiting Ireland regarding options for reducing the cost of international roaming;
• chapter 3: costs for UK mobile phone users using their mobile phone in Ireland for a range of options;
• chapter 4: costs for Irish mobile phone users using their mobile phone in the UK for a range of options;
• chapter 5: comparison of costs for UK consumers visiting Ireland vs Irish consumers visiting UK;
• annex A: details of methodology;
• annex B: details of tariff data used.

1.7 Readers of the report need, of course, to be aware that:

• prices change – the report is based on tariffs valid as at February 2002;
• they need to consider carefully how they use their phones.

For these reasons the advice to consumers and the detailed results should be taken as being indicative only.

1.8 This report looks only at mobile roaming tariffs. When consumers choose a mobile operator and choose their tariff type (ie pre or post-pay services), the primary consideration is likely to be the consumers domestic (rather than roaming) usage. There are a wide range of factors which will affect the consumer's choice and factors to be considered include:

• cost of handset purchase;
• monthly rental and domestic airtime included;
• cost of calls;
• access to, and cost of additional services – voicemail, data, SMS, information services etc;
• duration of contractual agreement with chosen network; and
• network coverage.

Chapter 2

Advice to UK consumers when roaming in Ireland

2.1 Oftel has previously published advice to consumers roaming abroad ( www.oftel.gov.uk/publications/mobile/roam1101.htm). The purpose of this chapter is to provide more specific advice for different types of UK consumer who use their mobile phone while visiting Ireland.

2.2 In this report four different types of consumer are considered:

• profile 1: a UK residential consumer taking a two-week holiday in Ireland;
• profile 2: an Irish citizen working/studying in the UK, returning home to Ireland for a weekend once a month;
• profile 3: a UK business consumer visiting Ireland once a month; and
• profile 4: a Northern Ireland resident working in Ireland, commuting daily across the border.

The equivalent profiles are also considered for visitors from Ireland to the UK.

2.3 An overview of the tariffs available as at February 2002 is given in Chapter 3 together with the detailed assumptions and detailed results (see also Annex A). Table 2.1 summarises the most important options for each consumer type. This is followed by more detailed advice for each consumer type.

Table 2.1: Most important options for different consumer profiles

Key:

££ = Consider this, it may well save money
£ = Possibly this may save money - savings are very dependent on individual circumstances
- = This is unlikely to be worthwhile for a one-off visit

In all cases this advice is indicative – the best option will depend on individual circumstances

Profile 1: UK customer taking a two week holiday in Ireland
Makes 18 minutes and receives 6 minutes of calls

2.4 For a one-off holiday, the main advice is to be aware of the different call charges and to consider steps to reduce usage and/or use alternative means of calling. Some specific points to consider are given in this section.

2.5 Receiving calls may cost up to £1.50 a minute for a pre-pay tariff, and up to £0.94 per minute if on a post-pay tariff. In some cases it will be cheaper to make the call, rather than receive it; and receiving an SMS is free.

2.6 Calling back home to the UK will cost up to £0.99 a minute for a pre-pay tariff and up to £0.67 p/minute for a post-pay tariff. Costs for calls within Ireland can be as high as £1.49 for a pre-pay customer and up to £0.40 for a post-pay customer.

2.7 Sending an SMS, however, will cost around £0.39 for a pre-pay customer (though this service isn't available on all networks) and up to £0.33 for a post-pay customer. Sending one SMS will generally be cheaper than making a one minute voice call – but sending several SMS may be more expensive, so this option is most useful for conveying one, quick, message.

2.8 It may be cheaper to use a payphone than a mobile phone. The cost of payphones varies by payphone operator (and by pre-pay card) – but to give an example, using an Eircom payphone a one-minute call to mainland UK will cost around £0.5 – considerably cheaper than some mobile rates. Call charges within Ireland (which includes Northern Ireland) are lower and €0.4 (£0.25) will give over four minutes of call time at the weekend rate.

2.9 Some tariffs do have charges that vary by the network in Ireland that is used. With Vodafone's pre-pay tariff, choosing the partner network, Vodafone (Ireland), will be 24% cheaper than either of the other two networks.

2.10 Pre-pay mobile roaming tariffs are considerably more expensive than post-pay tariffs – however, roaming costs on a one-off holiday are unlikely to determine the choice of domestic tariff.

2.11 For the profile used, the difference between a standard post-pay roaming tariff and an international traveller service (ITS) scheme is fairly small – though there were some savings to be made from BT Cellnet. For higher usage, subscribing to an ITS scheme for the month of the holiday may be worthwhile.

2.12 Buying an Irish SIM card is likely to be a more expensive option for a one-off holiday. However, this will depend on the level of, and pattern of, usage. For someone planning to use their mobile a lot, the savings on call charges could cover the cost of the card plus any cost involved in unlocking the existing SIM. The choice of Irish network needs to be made carefully though, as costs were found to vary significantly between networks. If the mobile customer expects to receive a lot of calls in Ireland, the Irish SIM may be less convenient as the customer will be allocated a different phone number and callers from the UK will pay higher charges for calling an Irish mobile number.

Profile 2: Irish citizen working/studying in the UK, returning home to Ireland for a weekend once a month
Makes 9 minutes and receives 3 minutes of calls per visit

2.13 For the regular traveller, it is important to consider carefully the options available. As for profile 1, it is important to be aware of the level of costs for different call types (and to be aware of any differences by network) and to consider alternatives such as SMS or payphones.

2.14 Pre-pay roaming tariffs are significantly higher than the tariffs for post-pay customers – someone on a pre-pay tariff might want to consider switching to a post-pay contract (though whether this is worthwhile will depend on the domestic as well as roaming usage).

2.15 An ITS may be worth considering – while for the level of usage chosen for this profile this did not lower costs, for someone with higher usage there may be cost savings.

2.16 Buying an Irish SIM (on the cheapest Irish network for this profile) could also save money, particularly for someone on a pre-pay tariff. The choice of Irish network needs to be made carefully though, as costs were found to vary significantly between networks. Also, an Irish SIM may be less convenient (a different phone number) and will mean higher call charges for those calling the new SIM.

Profile 3: UK business consumer visiting Ireland once a month
Makes 20 minutes and receives 12 minutes of calls per visit

2.17 For a regular business traveller, the costs can vary significantly according to the option chosen and there is potential for significant savings by choosing the appropriate option.

2.18 As for the other profiles, being aware of the level of costs for different call types is important, though using SMS or a public payphone may well not be convenient substitutes.

2.19 Pre-pay roaming tariffs are significantly higher than the tariffs for post-pay customers – someone currently on a pre-pay tariff might want to consider switching to a post-pay contract (though whether this is worthwhile will depend on the domestic as well as roaming usage).

2.20 An ITS should be considered – for the level of usage chosen for this profile this offered savings of up to 38%. The savings would be higher for higher usage. Savings may also be higher as: an ITS may be offered free on some packages (particularly the higher usage domestic packages); an ITS may provide additional benefits (lower roaming charges when visiting countries other than Ireland and possibly lower international call charges from the UK).

2.21 Buying an Irish SIM (on the cheapest Irish network) was found to be cheaper than any UK roaming tariff. The choice of Irish network needs to be made carefully though, as prices were found to vary significantly between networks. Also, an Irish SIM may be less convenient (a different phone number) and will mean higher call charges for those calling the new SIM.

Profile 4: UK (Northern Ireland) resident working in Ireland, commuting daily across the border
Makes 18 minutes and receives 6 minutes of calls per month

2.22 For a daily commuter, the costs can vary significantly according to the option chosen and there is potential for significant savings by choosing the appropriate option.

2.23 As for the other profiles, being aware of the level of costs for different call types is important – using SMS rather than voice calls may well be worthwhile. Sending one SMS will generally be cheaper than making a one minute voice call – but sending several SMS may be more expensive, so this option is most useful for conveying one, quick, message.

2.24 Pre-pay roaming tariffs are significantly higher than the tariffs for post-pay customers – someone on pre-pay might want to consider switching to a post-pay contract (though whether this is worthwhile will depend on the domestic as well as roaming usage).

2.25 An ITS may offer savings and should be considered – for the profile chosen this offered savings of around 25% with BT Cellnet, but the potential for savings would be greater with higher usage.

2.26 Buying an Irish SIM (on the cheapest Irish network) was found to be cheaper than any UK roaming tariff. The choice of Irish network needs to be made carefully though, as prices were found to vary significantly between networks. Also, an Irish SIM may be less convenient (a different phone number) and will mean higher call charges for those calling the new SIM.

Chapter 3

Costs for UK consumers roaming in Ireland

Introduction

3.1 This chapter looks at the costs for UK consumers roaming in Ireland using a variety of tariff packages, and considers least cost options for using a mobile phone in Ireland. All costs are presented in UK£ including VAT and represent a snapshot of costs as at February 2002. The results in this chapter form the basis of the advice given in Chapter 2. More detailed information on methodology used in this section is given in Annex A and a more detailed listing of the tariff data used in given in Annex B. This chapter provides:

• a summary of the services available for customers of the four UK mobile operators when travelling in Ireland;
• an overview of the roaming tariffs available from UK operators;
• an overview of the methodology used;
• details of the usage profiles used to evaluate costs; and
• details of the results obtained.

Availability of services

3.2 Prices for roaming abroad vary according to whether a consumer is on a pre-pay package or has a contract (post-pay). For post-pay consumers, there may be a further choice between a ‘standard’ tariff (which will generally be the ‘default’ tariff) and an ‘international traveller service’ (ITS) package, which offers lower per minute charges but incurs a fixed monthly fee (the monthly fee may be waived for customers on some tariff schemes, and there may be additional benefits such as reduced international charges). Not all operators offer all these options. The options available as at February 2002 are summarised in table 3.1.

Table 3.1: Options available for roaming in Ireland (February 2002)

Y= yes, N = no

Overview of tariffs

3.3 Roaming tariff options will vary. Some general features are:

• there is a cost to receive calls while roaming in Ireland – but not to receive SMS;
• the price per minute of making calls may vary according to which network is used in Ireland. There are three main models:
• tariff varies by visited operator;
• flat rate tariffs across all operators; or
• ‘partner schemes’ where prices are generally flat except that there are lower charges for the partner network;
• an operator may require a deposit before roaming is enabled;
• there may be a fixed monthly charge (generally only if an ITS is chosen).

3.4 There are three mobile network operators in Ireland:

• Vodafone (Ireland) – previously called Eircell;
• Digifone; and
• Meteor, the newest entrant.

3.5 A guide to the level of charges as at February 2002 is given in table 3.2 (note this is intended as general guidance; any particular tariff may have prices anywhere within the range for any call type). Full details of the tariff data used in this report are given in Annex B.

Table 3.2: Tariff ranges for different call types – cost per minute (or per SMS) for making/receiving calls, as at February 2002

Ranges are for peak time calls and are slightly reduced for off-peak calls

Methodology

3.6 Comparisons of individual tariffs provide a general guide to roaming costs for consumers. However, in order to consider specific advice to consumers regarding the options available to them to reduce their roaming bill, it is helpful to consider a range of consumer profiles. To do this a number of visitor types are considered. For each customer type a ‘basket’ of calls made and received is constructed and the total cost for this basket is calculated for a range of options.

3.7 An alternative to using the roaming tariff applicable to the existing package is for a UK consumer to directly use an Irish operator for their mobile calls in Ireland. There are a number of ways of doing this:

• ensuring that the mobile handset is unlocked from the SIM with which it was originally sold, and purchasing an Irish SIM card;
  
• renting a mobile phone while in Ireland; or
• purchasing a second mobile phone in Ireland.

This report focuses on the first of these options, ie purchasing an Irish SIM card.

3.8 The cost of using an Irish SIM is taken as:

• the explicit cost of unlocking the existing SIM (if this applies – see annex A for details); plus
• the cost of buying an Irish SIM in Ireland; plus
• the cost of making calls on an Irish network.

3.9 The costs of SIM (handset) unlocking and of purchasing an Irish SIM are assumed to be spread over a given period (details given as part of the profile). A list of more detailed methodological points is given in Annex A.

Profile details

3.10 The profiles considered in this report are as follows:

• profile 1: a UK residential consumer taking a two-week holiday in Ireland;
• profile 2: an Irish citizen working/studying in the UK, returning home to Ireland for a weekend once a month;
• profile 3: a UK business consumer visiting Ireland once a month; and
• profile 4: a UK (Northern Ireland) resident working in Ireland, commuting daily across the border.

3.11 The details of the profiles used are given in table 3.3.

Table 3.3: Usage profiles for the four different customer types

* For a one-off holiday the full cost of SIM swapping is added to the network usage charges. For regular travellers the average monthly cost over a year is taken, ie the cost of SIM swapping is taken to be spread over 12 months.

3.12 The usage levels have been informed by the market research Oftel has conducted into mobile phone usage for UK consumers at home and abroad, and by data collected from UK mobile operators for other benchmarking exercises. See Annex A for further details.

3.13 The following sections consider:

• total monthly spend on roamed calls for each of pre-pay, post-pay standard and post-pay ITS (for profile 1 this is just total holiday spend);
• as above but consider different costs for different networks; and
• total monthly spend based on using an Irish SIM.

Results Profile 1: UK customer taking a two week holiday in Ireland
Makes 18 minutes and receives 6 minutes of calls

3.14 This section considers roaming costs for a UK consumer taking a two-week holiday in Ireland. Table 3.4 gives details of the total cost for consumers on different types of package. It is seen that:

• pre-pay consumers pay in the range £22- £28 for this set of calls;
• the cost is significantly less for post-pay consumers who pay in the range £8 – £16 for the same set of calls;
• using an ITS tariff is found to give savings of around £4 for BT Cellnet customers.

3.15 The more detailed results indicate that:

• for pre-pay customers using Vodafone, savings can be made by choosing the Irish network carefully – choosing Vodafone (Ireland) will cost £18, while either of the other networks will cost nearly £24, ie the most expensive network charges cost 30% more than the cheapest;
• for post-pay customers, any differences in charges according to Irish network are hard to quantify, as not only the rates but the method of billing (eg billing per 30 sec vs billing per sec) differ by operator. Differences in overall costs appear relatively small.
• in many cases, buying an Irish SIM card doesn't appear cost effective for a one-off trip for this level of usage. Small savings (of up to £4) are possible for some post-pay customers. However, the cost saving needs to be considered in the context of loss of convenience (ie a different phone number for the Irish SIM) plus it will cost more for those calling the Irish SIM (additional cost approximately £1.60).

Table 3.4 – Comparing roaming costs for different options for Profile 1

A. Cost for calls made during trip (£)

B. Differences in cost for different tariffs (£)

Differences are only shown where there is a potential cost saving

C. Monthly costs using Irish SIM – and savings compared to UK roaming tariffs (£)

Differences are only shown where there is a potential cost saving

*includes the cost of SIM unlocking plus purchase of Irish SIM card, spread over a year, plus cost of calls on cheapest Irish network

3.16 The results have also been run using two variations on this profile:

• keeping the same level of overall usage, but most calls are now made within Ireland (ie making calls to book accommodation etc, rather than keeping in touch back home); and
• keeping the calling pattern the same, but doubling the usage.

3.17 For several tariffs, calling within Ireland is about the same or cheaper than calling back to the UK. However, an exception to this is the BT Cellnet pre-pay tariff which has higher call charges within Ireland than back to the UK, and the overall costs for this package increase by 40% when the calling pattern is changed to be predominantly within Ireland. In most cases the overall advice remains the same irrespective of the detailed calling pattern:

• pre-pay roaming is much more expensive than post-pay;
• there may be small savings (in one case only) to be made by changing to an ITS; and
• SIM swapping is unlikely to be cost effective for a one-off trip (though savings of around £6 were found for a BT Cellnet pre-pay customer with the predominantly within-Ireland calling pattern).

3.18 Doubling the usage, doubles the costs for the pre-pay and post-pay standard tariffs – the ITS costs increase by less than twice, and subscribing to an ITS now saves between £2 and £11. Doubling the usage also makes buying an Irish SIM look more worthwhile – this could save up to around £16 for either a pre or post-pay customer.

3.19 The potential savings for customers buying an Irish SIM do depend critically on the choice of network in Ireland – the savings quoted apply to the least cost Irish network, but costs can differ extensively between networks, particularly in relation to the cost of calls back to the UK. Also, the cost saving needs to be considered in the context of loss of convenience, ie a different phone number for the Irish SIM, plus it will cost more for those calling the Irish SIM .

Results for Profile 2: Irish citizen working/studying in the UK, returning home to Ireland for a weekend once a month
Makes 9 minutes and receives 3 minutes of calls per visit

3.20 This section considers the costs for an Irish citizen working/studying in the UK, who has purchased their mobile phone in the UK and who travels back home to Ireland for one weekend a month, where the majority of their calls will be made within Ireland. The results (table 3.5) show:

• pre-pay customers pay in the range £11 – £17, significantly more than those on post-pay who pay £4 – £6. This level of difference per month (£6 – £13) may make it worthwhile for a pre-pay consumer to consider switching to a post-pay contract, although they would need to take account of other factors, such as their domestic calling pattern, in making this decision;
• for a consumer already on a post-pay tariff, an ITS doesn't help reduce costs for this level of usage/calling pattern;
• generally the choice of Irish network won't make a big difference to overall cost – the exception being Vodafone's pre-pay tariff, where choosing the Vodafone (Ireland) network is 24% cheaper than either of the non-partner networks.

3.21 The costs of using an Irish SIM (for the least cost Irish network for this profile) is less than using UK roaming tariffs:

• for a pre-pay customer its possible to save up to £13 by using an Irish SIM;
• for a post-pay customer, its possible to save up to £4 by using an Irish SIM.

3.22 The potential savings for customers buying an Irish SIM do depend critically on the choice of network in Ireland – the savings quoted apply to the least cost Irish network, but costs can differ extensively between networks, particularly in relation to the cost of calls back to the UK. For example, with Meteor calls to the UK cost about the same as calls within Ireland, while for other operators calls to the UK are substantially more expensive.

3.23 In looking at the results in table 3.5C it should be borne in mind that it will cost people in the UK more to call the Irish SIM than the original UK SIM – the additional costs are estimated to be £0.9 – so significantly less than the potential savings. Also, the cost saving needs to be considered in the context of loss of convenience, ie a different phone number for the Irish SIM.

Table 3.5: Comparing roaming costs for different options for Profile 2

A. Monthly cost for calls while visiting Ireland (£)

B. Differences in cost for different tariffs (£)

Differences are only shown where there is a potential cost saving

C. Monthly costs using Irish SIM – and savings compared to UK roaming tariffs (£)

Differences are only shown where there is a potential cost saving

*includes the cost of SIM unlocking plus purchase of Irish SIM card, spread over a year, plus cost of calls on cheapest Irish network

3.24 Doubling the usage may make an ITS worthwhile (a saving of £3 in one case) and increases the potential savings from using an Irish SIM.

Results for Profile 3: UK business consumer visiting Ireland once a month
Makes 20 minutes and receives 12 minutes of calls per visit