Why Is The Roaming Free?

[snaimon]

Originally Posted by unobtrusive

Now taking the example of an International SIM that allows free inbound to Greece - as long as the revenue to the originating operator for the incoming call to its own network is at least 0.125 EUR then free inbound can be offered to the 3 major networks without suffering any financial loss. If the inbound revenue is higher than 0.125, or if the destination networks termination fee is lower than 0.125 then a profit is made.

First I'll take the case of an incoming roaming call. This can be offered simply because the call must pass through the users home network and the home network stores the balance of the users account. When that balance reaches 0 the call can be terminated and users profile changed to disallow further calls.

Thanks for the detail. I am sorry to be so dense, but I have a few questions.

1. For the international SIM, say if I am in Germany and registered on T-Mobile with my UM SIM calling to Greece -- say to my wife on a UM card. What firm is "the originating operator"? T-MO, UM or the Greek firm receiving?

On UM, the revenue to UM - prpbably shared with the actual service provider - is 25 ecents to setup and 39 ecents per minute. Now, that certainly will cover the termination fees in Greece and allow everyone a profit. But why should all the Greek operators allow UM free inbound?

Consider if I used my DE T-Mobile SIM instead where I am guessing I would owe DE T-Mo upwards of 99 ecents per minute AND the Greek operator handling the call in Greece does not allow free inbound? If my wife was using our DE T-Mobile cards and received a call in Greece, my DE T-mobile balance is debited by 79 ecents -- whether I call from the UM card or a landline or pay the > 99 ecents from my other DE T-Mobile card. Where is the logic?

How is it possible that UM callers enjoy FREE inbound and DE T-MO users don't?

2. I don't understand how, if I am in France with my German T-MO card, the call "must pass through the users home network". I am registered on SFR, right? Someone in France using SFR dials me; how does that call pass through Germany? Why? As I see it , the only way "passing thru" can happen is if SFR communicates behind the scenes with the German host network. Now my German cards were out of phone time but still in message time and they registered here in the US and I believe I could receive SMS messages, retrieve my balance and add money to the account. I could not dial out, however, as the call was not allowed. There is bound to be on the SIM card a set of approved roaming networks. I can understand the "behind the scenes" communication to check balances, but I would not equate that with your descripiton - "the call must pass through the users home network" statement.

3. You do not address the possibility of negative balances; I THOUGHT I read this in DE T-MO literature about prepaid accounts, especially in connection with international roaming.

Stan