A Study of the Roaming Alliance in Mobile International Roaming Market

Based on the introduction of the basic principal in mobile international roaming market, this paper presents one simple model to examine the impact of alliances on international roaming market and operators' profits. Lower inter-operator tariffs does not improve allied operator's profits directly and lower retail prices cuts down allied operator's revenue at the beginning of its application. With the market share increased after a period of time, allied operators get the max profit based on the optimum inter-operator tariff. The inter-operator tariff between allied operators makes an impact on the behavior of mobile network operator and roaming subscriber.