Mobile roaming abolition: What lies ahead for telcos

BANGALORE, INDIA: On Monday, Union Minister for Communications and Information Technology has set the record on abolition of mobile roaming charges in the country straight, when he said that it would come into force next year.

Clarifying on the timing of waiving roaming charges as proposed in the National Telecom Policy (NTP) 2012, Sibal was quoted saying, "From next year. Our secretary has told you that it will be free from next year."

The NTP 2012 policy is meant to provide an efficient telecommunication infrastructure taking into account the primary objective of maximizing public good by empowering the people of India, which includes One Nation — Free Roaming on its prime agenda.

So, what kind of an impact the policy decision, when implemented, might leave on the telecom operators in the country, which, on the face of it, might look at several options to balance their revenue flow?

Also read: Mobile roaming free in India by 2014?

According to the director-general of Cellular Operators Association of India (COAI), Rajan S. Mathews, it might not be based just on the national roaming abolition, as the Telecom Regulatory Authority of India (TRAI) would facilitate a discussion among operators, who would look at a host of issues based on their cost structure, that includes their tariffs.

"There are a lot of issues involved like inter-operator agreements and cost structures. Some people (operators) have a pan-India presence, some don't have. Unless we have clarity on these issues, it would be premature to say anything on it," Mathews told CIOL.

He had earlier stated that a final call on implementation of free roaming would be taken by the Department of Telecom and the  proposal for no additional charges for roaming across the nation was complex, serious and potentially disruptive matter. "Roaming revenues help many operators cross-subsidize voice calls. Once this cushion is not available, we might see tariffs of voice calls go up," Mathews said.

But, it seems just one option in front of the telecom operators, as the COAI DG says that they are happy to go with the government's NTP-2012 policy. "TRAI normally floats a discussion paper and the minister (Sibal) has said that they would seek inputs from all stakeholders, before arriving at a decision," he wrapped up.