India may abolish local roaming by March

Dylan Bushell-Embling
05 Dec 2012
00:00

Indian operators may be required to abolish local roaming charges within India by March, despite their ongoing opposition to the government's proposal, according to a news report.

The abolishment of intra-country roaming rates is on a list of “key initiatives” to be completed within the next few months, named on an internal Department of Telecom document received by India's Economic Times.

The ministry is also considering expanding the nation's MNP facility to require operators to allow customers to keep their numbers even if they move to a new state or region.

India first proposed to abolish local roaming charges in the New Telecom Policy, which was approved by cabinet in June.

In September, telecom minister Kapil Sibal revealed plans to make India roaming-free sometime next year.

But operator groups including COAI, the body representing India's GSM segment, have been bitterly opposed to the plan.

Operators argue that roaming charges currently account for around 10% of their revenues, so blocking that revenue stream would require them to raise rates to compensate.

COAI estimates that only 10% of subscribers avail themselves of national roaming, and has implied that the move would therefore be detrimental to the majority of consumers at the expense of a few.

More complaints hinge on fears abolishing roaming could lead to widespread incidences of consumers shopping around India's various telecom circles for the best tariff deal, requiring operators to adopt a single tariff country-wide.

This could have a detrimental effect on Indian operators' profit margins, which are already wafer-thin.

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