Free Roaming — At What Cost?

Free roaming across the 22 circles of the country is cited as one of the main policy reforms in the recent cabinet approved NTP 2012. What is the impact for subscribers?

Roaming is the ability of a subscriber from a particular network (referred to as Home network) to use the mobile phone of the same or different network provider (called as Roaming network) while moving to a different service area. A roaming agreement is needed between the networks that would enable exchange of information between these networks for authentication and billing purposes.

Intra vs Inter-circle Roaming

Roaming can be intra-circle (say within Karnataka) or inter-circle (across Delhi and Karnataka). In the former case, though the operator has license and associated spectrum in the circle, it might not have deployed the access network to enable coverage due to economic reasons and hence has an agreement with another operator who has deployed network in that area to allow roaming to subscribers.

This method in general reduces duplication of network elements and allows optimal utilization of scarce spectrum amongst the operators. Intra-circle roaming has been allowed in India since June 2008 and is seen as an excellent example of competitive collaboration (aka co-opetition). For the user, it is almost seamless as there are no additional roaming charges levied.

Though rollout obligations exist, the quality of service norms are not stringent enough to guarantee 100% subscriber coverage either through own infrastructure or via intra-circle roaming. It is time that the regulator mandates full coverage by operators especially in rural and remote parts of the country.

However in case of inter-circle roaming, the operator does not have license and/or the associated spectrum to provide access services and hence has a contract with the roaming operator(s) to provide roaming services. There is often