Free Roaming - At what cost?

Dr. V. Sridhar  and  G Krishna Kumar. The authors are  Research fellow, Sasken communication Technologies and  ,Vice President, Symphony Teleca,  respectively.  Views are personal

Key Highlights:

• Domestic Roaming contributes to 6 to 8% of the Operators' revenue
• Multi SIM mobiles are reducing hte relevance of roaming
• Free roaming is prevalent in advanced economies
• EU has been struggling with high data roaming
• Lack of 3G roaming regulation could be a matter of opertaors' dispute
• Subscribers might end up paying more than current rate

Free roaming across the 22 service areas (aka circles) of the country is cited as one of the main policy reforms in the recent cabinet approved National Telecom Policy (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.

 

Roaming can be intra-circle (i.e. within Karnataka) or inter-circle (i.e. 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 of its 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 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 roll-out obligations exists, the quality of service norms are not stringent enough to guarantee 100 percentage 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 an inter-operator wholesale reciprocal roaming agreement determined between operators and based on this retail roaming charges as paid by the subscribers are fixed. In the case of voice roaming, the TRAI regulation implemented in 2007 ensured no rental or surcharges be levied by the operators. TRAI has also regulated the maximum permissible per minute charges for roaming calls, irrespective of the terminating networks, and irrespective of tariff plans. These measures and the competition level in each circle have ensured that the retail roaming charges are closely aligned to cost of roaming. Domestic roaming still contributes to about 6-8% of the operators’ revenue. There is every incentive for the operators to extract extra rents from subscribers if roaming charges are not regulated. However, innovations such as multi SIM mobiles have also reduced the relevance of roaming. The user who often roams, typically has two SIMs, one from the home operator and another from an operator in the roaming circle to reduce the roaming charges to the bare minimum. Hence free roaming across circles already exists to some extent for voice calls, though policy has just now been announced, thanks to the general rule that regulation lags behind technologies and markets. It is to be noted that advanced countries such as USA, Australia and Canada, have implemented free roaming within their countries for quite some time. In fact, EU has drawn-up a sliding rate plan to reduce voice roaming charges so as to make the difference between roaming and national tariffs to zero by year 2015.

 

Though detailed guidelines are awaited on NTP 2012, the implications of free roaming in 3G and Broadband Wireless Access (BWA) for the provisioning of data and wireless Internet services is worth exploring.  EU has been struggling with very high data roaming charges across the EU countries and has set a goal of bringing down the data roaming charges from 90 cents per MB of data by July 2012 to 50 cents by July 2014. EU has also defined ceiling charges for wholesale rates, between two operators.

 

Our handsets are smart enough to ask us whether we want to use data services while roaming across circles just to make sure that there are no bill shocks! With just two operators having pan India spectrum for 3G and Broadband Wireless Access (BWA), will free roaming have an impact on the operators and on the subscribers? What is unique about data roaming is that  usage is typically initiated by the subscriber (except in case of VoIP calls) unlike voice calls and also, the data packets are confined to roaming network and not routed through the home network.  Hence the inter-operator whole sale agreements should be much simpler wherein the roaming operator charges for all data usage of the roaming subscribers and pass it on to home operators for collections. Hence free data roaming (i.e. without additional roaming surcharge) is easily implemented compared to free roaming of voice subscribers. However, the operators’ hands are tied with respect to appropriation of reciprocal inter-carrier wholesale roaming charges. This may possibly result in operators refusing to provide roaming. Hence the vital role of the regulator to curb such practices as otherwise subscribers may wander with no network coverage. 

 

Research studies on this topic point out to the deployment of non-overlapping coverage networks and related spectrum and network sharing arrangements, if roaming charges are not regulated, as has been happening through 3G roaming pact amongst the operators and is the subject of dispute. In case of free roaming, the operators are likely to either (i) deploy networks since extra rent cannot be appropriated through roaming or (ii) increase the home usage charges to offset the wholesale roaming pacts. The former one is unlikely across circles as the operator has to purchase spectrum at high prices. Hence the latter is more likely. The subscriber will end up paying more than current rates across the board!

 

There is another possibility which is a silver lining to this whole episode. It is very likely that both the home as well as roaming operators, by themselves, or by tying up with Internet Service Providers (ISPs) provide Wi-Fi (the wireless network operating over unlicensed band) hot spot access at substantially reduced usage charges to address the requirements of roaming data users.

This should be good news for business savvy niche and nimble ISPs to take note of and improve Wi-Fi hotspots penetration in our country!

Mobile phone radiation affects you: What's the govt doing?

Rediff Business / Opinion July 11th 2012

(G Krishna Kumar, Vice President, Symphony Teleca. Views are personal)

While we laud the dramatic rise in India’s Tele-density thanks to the mobile phone penetration, it is concerning to see most subscribers, including the educated class, unaware of the possible health hazards due to radiation from mobile phones and mobile towers.

 

WHO states that mobile phone radiation can possibly cause cancer. Studies are ongoing to fully assess potential long-term effects of mobile phone use and WHO will conduct a formal risk assessment of all studied health outcomes from radio frequency field exposure by 2012.

 

A recent news report suggests that FCC, the US regulator plans to revise the radiation levels as they were set in 1990s when the mobile usage was very different. In fact, India’s National Telecom Policy (NTP- 2012) too recognizes the need for periodic review radiation standards.

 

An inter-ministerial committee recommendation approved late last year talks about some stringent measures to curb radiation.  But the big question is about effective execution. The recommendations include educating the phone users on reducing the radiation effect, reduction in acceptable radiation levels, more commonly known as SAR – Specific Absorption rate, SAR level to be displayed on Mobile phones. SAR indicates the rate at which human body absorbs electromagnetic power radiated from mobile phones.

 

While it is expected that the Mobile phones sold in India will start carrying SAR details by September 2012, what would happen to the existing phones being used? For the high end mobile users, there is some hope. There are downloadable applications that warn users when the radiation level increases.  Also, for most of the branded mobile phones, SAR info is available on the internet. What happens to the unbranded low cost phones?

 

Government should mandate all the mobile phone makers (Over 100 of them) to provide the radiation details for all phone models online and to be available all the retail outlets.  As of now there are no Government approved facilities in India for checking SAR value of a mobile phone. This is because the SAR testing equipment is expensive. Obviously, that cannot be a reason considering that we are dealing with public health and more over, India is the 2nd largest mobile market in the world. DOT should support in establishing test labs in India, maybe through a PPP model at least in all the major cities.

It is important to note that the SAR value by itself does not guarantee that the phone is safe to be used continuously for hours like most people do.  In a research report on Mobile phone radiation, Prof Girish Kumar of IIT Mumbai clarifies that a SAR value of 1.6 W/kg means that the phone can safely be used for about 18 minutes of continuous talking ( with phone held against the ear) in a day.  It is imperative that the Government and the regulator educate the subscribers on this specific aspect.

 

Now let us turn our attention towards the impact of radiation from the mobile towers. The data is even more shocking and research reports indicate that the effect of radiation due to Mobile towers is far higher as it is a 24x7 phenomenon and affects everyone residing near the tower and not limited to mobile subscribers.

As per government directive based on the Inter-ministerial report , Radiation level from Mobile towers should be brought to 10% of the existing limits  by September 2012. Reports suggest, even this reduced limit is way above international norms.  Sample this - India currently allows 9.2W/m2 ( watt per square meter), come Sep 2012, the number would be 0.92W/m2, while many countries follow anywhere between 0.025 to 0.1W/m2. Higher the power emitted by the towers, better would be coverage to the subscribers and this would cost lesser for the Telcos.

 

What is the solution? Should the towers be removed? No. Power level from the towers should be reduced and this means more towers and additional expenditure. However, the cost can be reduced through infrastructure sharing among telcos, some Government subsidy and marginal increase in tariff.

The Telcos have been mandated to provide self-certification of radiation levels from mobile towers. DOT’s TERM department is expected to conduct random test covering 10% of the towers. This may be grossly insufficient considering that there are lakhs of towers installed across the country.  There is a need for a framework that would allow periodic collection of data through designated third parties. Should the Pollution control boards in the states become a key stakeholder in monitoring radiation?

 

In most of the developed countries, Telcos have started deploying Distributed Antennae System (DAS) to overcome the coverage problems. This reduces the number of towers needed and more importantly helps in reducing radiation. Globally, examples abound on DAS implementation in Airports, Malls, Hospitals, educational institutions and resorts.

 

In fact an Instat research report predicts significant growth in DAS implementation in the APAC region by 2015. In Building Solution (IBS) and DAS have been identified as key drivers in a TRAI report and also in the NTP 2012. However, question remains if and when will it be implemented?

There is an urgent need for simple hand-held devices for measuring radiation and available at affordable prices. In fact, such devices must be mandated in educational institutes, Hospitals, Malls, public places and even residential areas.

 

Although mobile has become an integral part of our lives, there are increasing evidences indicating health hazards due to Mobile radiation from Mobile phones and towers. It is imperative that the Government persuades all the stake holders to impart awareness among the Indian subscribers. Considering that public health is most important, Government’s resolve to address the issue through stringent measures, along with a clear implementation plan holds the key! Let’s hope to see some real action from this September.