The department of telecommunications (DoT) has allowed mobile operators to enter into intra-circle roaming pacts. The move will benefit subscribers of regional players who are now expanding on a pan-India basis, but are unable to roll out networks covering the entire circle fast enough. For existing operators, it would open up a new revenue channel.
However, the move does not absolve service providers from meeting their rollout obligations, which mandates them to cover at least half the circle within three years. Further, it is optional for existing operators to enter into such pacts.
Under the move, operators such as Idea Cellular and Vodafone, who are not present all-India, but are increasing their presence, will be able to garner new subscribers faster and at a lower initial cost.
For instance, when Idea starts rolling out its operations in a new circle like Bihar, it can enter into roaming pacts with other service providers in the same circle to offer subscribers seamless connectivity in areas yet to be covered by its own network, while it cobbles together the necessary infrastructure.
DoT has said that Trai would decide the fee structure for intra-circle roaming. Interestingly, Trai had recommended intra-circle roaming in 2005.
