Indian mobile users may need to wait for a little while longer for the free nationwide roaming as proposed by the telecom department in the National Telecom Policy 2011. While free domestic roaming is prevalent in countries like the US, Canada, France, Germany and England; in India, service providers may be hesitant due to the negative financial implications that could concern them. As per sources, this policy could result in a $400 million hit for the industry as a whole.
Reports suggest that GSM operators such as Airtel and Vodafone earn almost 8% of their revenues from roaming tariffs while in the case of CDMA operators, it accounts for almost 5% of their total revenues. As per sources, the overall domestic roaming business accounts for about $600 million every year while international roaming charges amount to as much as $1.2 billion.
However, Rajan S Mathews, Director General, Cellular Operators Association of India (COAI) has reportedly said that free roaming should not have a negative impact on an operator’s revenue. He added that the national MNP, free roaming and other points in the draft will have to be studied but this will surely ease the tariffs for consumers.
