NEW DELHI: Roaming charges paid by mobile users when traveling within India could be abolished, bringing down the monthly bills of frequent travellers but at the same time denting the revenues of telecom companies.
The draft telecom policy 2011, which will replace the decade-old existing framework for the sector, proposes to introduce a 'one nation-one licence' regime for mobile phone companies and do away with roaming charges. But the draft policy is silent on the time-frame for implementing this measure. The concept of domestic roaming is absent in most countries, including large nations like the US, as they have a single permit for mobile operators.
But India is divided into 22 circles and consumers shell out a fee for using their phones when they move out of their circles. The new policy, scheduled to be unveiled by the year-end, also proposes to expand mobile number portability and allow consumers to retain their numbers when they move to a new city or any location in the country without having to pay roaming charges.
At present, MNP, the facility that allows customers to retain their mobile number while switching operators, is restricted to a circle. For instance, a Delhi customer can switch to any operator within the metro, as this is considered to be the 'base circle' for that number.
Proposals may be objected to by telcos
But he has to pay roaming charges if the same mobile number in used in Mumbai. The new policy, which will come into effect next year, will allow mobile users to change the 'home base' for the number.
These proposals, especially the one related to doing away with roaming, may be objected to by telcos, as roaming generates Rs 13,000-14,000 crore, or 10% of total revenues of operators. Under current rules, a mobile phone company can charge a maximum of Rs 1.40 per minute for a local call for a mobile user traveling outside his home network while for STD calls, the limit is Rs 2.40 per minute for all outgoing and Rs 1.75 per minute for all incoming calls while on roaming, irrespective of the distance.
But, existing rates are far lower than these caps imposed by regulator Trai in 2007 as tariff wars that gripped the sector a couple of years ago had also resulted in many operators slashing their roaming tariffs. According to a telecom department official, the introduction of a new licensing framework and migration of all mobile phone companies to a single permit will be time consuming.
The migration process will be further complicated by the fact that the permits of mobile phone companies expire at different time-frames across different regions, this official added. In addition to these consumer-centric measures, the draft policy has also specified several targets for the telecom sector.
The draft telecom policy 2011, which will replace the decade-old existing framework for the sector, proposes to introduce a 'one nation-one licence' regime for mobile phone companies and do away with roaming charges. But the draft policy is silent on the time-frame for implementing this measure. The concept of domestic roaming is absent in most countries, including large nations like the US, as they have a single permit for mobile operators.
But India is divided into 22 circles and consumers shell out a fee for using their phones when they move out of their circles. The new policy, scheduled to be unveiled by the year-end, also proposes to expand mobile number portability and allow consumers to retain their numbers when they move to a new city or any location in the country without having to pay roaming charges.
At present, MNP, the facility that allows customers to retain their mobile number while switching operators, is restricted to a circle. For instance, a Delhi customer can switch to any operator within the metro, as this is considered to be the 'base circle' for that number.
Proposals may be objected to by telcos
But he has to pay roaming charges if the same mobile number in used in Mumbai. The new policy, which will come into effect next year, will allow mobile users to change the 'home base' for the number.
These proposals, especially the one related to doing away with roaming, may be objected to by telcos, as roaming generates Rs 13,000-14,000 crore, or 10% of total revenues of operators. Under current rules, a mobile phone company can charge a maximum of Rs 1.40 per minute for a local call for a mobile user traveling outside his home network while for STD calls, the limit is Rs 2.40 per minute for all outgoing and Rs 1.75 per minute for all incoming calls while on roaming, irrespective of the distance.
But, existing rates are far lower than these caps imposed by regulator Trai in 2007 as tariff wars that gripped the sector a couple of years ago had also resulted in many operators slashing their roaming tariffs. According to a telecom department official, the introduction of a new licensing framework and migration of all mobile phone companies to a single permit will be time consuming.
The migration process will be further complicated by the fact that the permits of mobile phone companies expire at different time-frames across different regions, this official added. In addition to these consumer-centric measures, the draft policy has also specified several targets for the telecom sector.
