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Consumers who were overjoyed to hear the news of free nationwide roaming at the announcement of National Telecom Policy 2011, will have to hold on to their excitement levels as there is an estimated delay in its execution.

Despite the government’s interest to push the policy, the inevitable delays have led the government to hold their plans.

Worldwide, countries like the US, Canada, France, Germany and England enjoy the benefits of free domestic roaming. But in India, the fear of adverse financial implications is expected to hold back the service providers from supporting the government’s initiative.

Rajan Mathews, Director General, Cellular Operators Association of India (COAI), confessed that free roaming is a growing global phenomenon that can't be wished away. He also said that some of this revenue loss will be offset by increased usage (minutes) and volumes (subscribers), eventually leading to more manageable net loss of 2% to 3% or Rs 4,600 crore.

Independent telecom consultants indicate a conservative hit of Rs 2,000 crore for the industry, but Mathews claimed an effect of 8% to 10% roaming revenues in the total telecom revenue. Based on TRAI's projected AGR (Adjusted Gross Revenue) of Rs 1,53,489 crore for 2011-12, foregoing domestic roaming charges would then translate into a hit of Rs 12,279 crore to Rs 15,349 crore.

The TRAI officials admit that they “will need to balance the benefits of free roaming against the potential increase in costs of local charges. Further, the entire interconnection regime, which is based on a circle basis, will need to be reviewed and restructured, which is time-consuming."

Given its consumer impact and the fact that it has been embraced by other nations, the policy is bound to roll but its execution might take at least six months.