DoT gives nod to operators for intra-circle roaming pacts

By Nayantara Rai, CNBC-TV18

The Department of Telecom , or DoT, has given the nod to operators for intra-circle roaming pacts, reports CNBC-TV18. The move will enable new operators to roll out services at lower capex. New operators say that 30-40% of capex can be pushed back by three years.

The DoT has given the green signal for operators to roam on each other's networks within the same circle. This is the result of intense lobbying by new operators and will now enable them to roll out services at significantly lower capex.

 It is good news for new operators like Unitech , Shyam , Videocon and Swan . They can now roll out services without setting up networks in all pockets of a circle. In an internal note, the DoT has given the go-ahead for operators to sign intra-circle roaming pacts. So, for example, Videocon could technically be rolling out services in the Tamil Nadu circle by setting up networks that cover just 50% of the area. For the rest, its customers could roam on other networks. It will, of course, be a mutual commercial agreement between the new operator and the existing operator.

Alternatively, even two new operators could geographically split a licence area and then roam on each other's networks. So, for example, Videocon and Shyam can enter into an agreement whereby Videocon covers half of the Tamil Nadu circle and Shyam rolls out in the rest. New operators say this move could bring down capital expenditure by 30 to 40% in the first 2-3 years.