Breaking News No Roaming charge from next year : Kapil Sibal

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Telecom Minister Kapil Sibal today said that mobile phone subscribers will not have to pay roaming charges from next year.

"From next year. Our secretary has told you that it will be free from next year," Sibal said here in response to a query on the timing of removing roaming charges as proposed in the National Telecom Policy 2012.

The Minister was speaking to the media on the sidelines of the curtain raiser event of India Internet Governance Conference.

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NTP 2012, approved in May, aims to abolish roaming charges and allow mobile phone subscribers to use same number across country without having to pay extra charges for services once they are outside their telecom circle.

Meanwhile, Telecom Secretary R Chandrashekhar said the Department of Telecom (DoT) is working on Notice Inviting Applications for spectrum auction after which it will work on unified licence (UL) guidelines - also a part of the NTP 2012.

"We are first going to attend to all issues linked to auction. The moment NIA is issued this week, we will focus on UL. After details of full UL is worked out, the modalities for free roaming will follow," he said.

As per the schedule, NIA will be issued on September 28.

GSM industry body COAI Director General Rajan S Mathews said he appreciated the concept of free roaming, but added that industry will have to work on details of implementation of 'One Nation - Free Roaming'.
 

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The move, however, might not go down well with service providers, who will face a hit of up to Rs 13,500 crore in revenues.

At present, GSM operators such as Bharti Airtel, Vodafone and Idea Cellular earn 10-12 per cent of their revenues from the national roaming services, which amount to Rs 10,000-Rs 13,500 crore.


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Earlier, they had to pay for normal call charges for outgoing calls made while roaming, plus the roaming charge of 75 paise to Rs 1 per minute as roaming charge. Moreover, while answering a call on roaming, they were paying up to Rs 1 per minute.”


According to the Cellular Operators Association of India (COAI), the industry body representing GSM operators, the loss of revenue could be lower at around Rs 5,000 crore as abolishing roaming would lead to a surge in calls and minutes of usage.

“The incumbent operators could collectively lose Rs 5,000 crore annually if the services are implemented without consultation with all the stakeholders. GSM-operators get 10-12 per cent of their overall revenues from the roaming charges,” said Rajan Mathews, director general of COAI.


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But in other countries, call charges are very high as compared to India. Slowly and steadily, Indian Telecom is heading towards perfect Telecom Module.
 
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