Roaming-Free India: The Flipside

With the National Telecom Policy (NTP) finally receiving approval by the government, the prospect of an end to inter-circle roaming, which often leads consumers to switch mobile service providers, is almost with us. (See Cabinet Approves The NTP 2012, Real Reason for 3G Roaming Mess and 3G Roaming: Win-Win Deal Is Needed.)

But might it be of benefit only to the small group of frequent travellers.

"Only three-to-five percent of the subscribers are involved in temporary inter-circle migration, so this step is all show off, while the end consumers will not be benefiting much," says Rajan Mathews, Director General, Cellular Operators Association of India.

No doubt the thought of carrying the same number across the country is fascinating, but it would be too early to celebrate the exiting of roaming charges, as the decision has been taken without any regulatory framework and analysis and as such no deadline has been framed for its implementation.

Furthermore it will lead to a significant impact on the revenue sheets of the operators, which are already crying about their funding crisis and the discouraging regulatory environment, which raises the potential of a tariff hike. Ultimately, it will be the majority that pay the price for the benefit of regular travellers. (See The Race To Quit, Uninor: On Pins and Needles? and Should BSNL Return 3G Spectrum As Well?)

It seems the decision of turning the country roaming free will have several implications if it is implemented without involving several important factors such as regulatory procedure, cost reconciliation and industry consensus.

Rimit Singh, Correspondent, Light Reading India