Airtel makes roaming free throughout India, reduces International Roaming charges by 90%

"I am declaring war on roaming", telecom tycoon Sunil Mittal said on Monday as his firm Bharti Airtel removed roaming charges for outgoing and incoming calls as well as SMSes and data usage within India as it takes on competition from new comer Reliance Jio.

India's largest mobile phone service provider also said there will be no roaming data changes while international call charges will be cut by up to 90 per cent to as low as Rs 3 per minute and data charges by up to 99 per cent to Rs 3 per MB across popular roaming destinations.

"I am declaring a war on roaming," he said at the World Mobile Congress here.

The 17-18 countries Airtel operates-in will allow its customers to have the freedom to switch on their mobile phones "wherever and whenever they want".

Mittal said "90 per cent of people turn off their data when they travel," including himself, and wait until they can find wi-fi in their hotel or buy local prepaid SIM cards to avoid stiff charges.

"We have a global network, but very few people are allowed to enjoy it," he said, adding that "it (exorbitant fees) is a disaster our industry has created".

Despite vast network "55 per cent of our people in the developed world switch off their mobile data. It is my estimated guess that 90 per cent of travellers from emerging markets switch off their mobile data. They go for local SIM cards, they go for the nearest wi-fi spot, they wait for themselves to get to their hotel. What have we done to our industry? This must stop," he said.

The industry needs to address this as well as the disdain its customers have for operators, he said.

"I can promise you that during my term at GMSA, roaming charges and bill shocks will be a thing of the past. I promise you that," said Mittal, who is also the chairman of the GSMA, the trade body for the mobile industry.

Starting April 1, Airtel customers roaming within India will enjoy free incoming calls and SMS and there will be no premium on outgoing calls allowing them to speak freely wherever they are within the country.

Also, there will be no additional data charges on national roaming. Home data packs for customers will apply even while they roam across India.

The moves follows within days of billionaire Mukesh Ambani's Reliance Jio charging for its services from April 1 but will continue to offer free voice and national roaming.

Jio will match the lowest data tariff and add 20 per cent additional data, he announced on February 21 adding customers signing-up before March 31 have the option of continuing existing unlimited services for a year at Rs 99 plus a monthly charge of Rs 303.

Airtel to buy Telenor India to augment spectrum holdings and customer base

India’s leading telco Bharti Airtel said that it has entered into a definitive agreement with Telenor South Asia Investments to acquire the latter’s India operations, Telenor Communications Private Limited or Telenor India. The move will allow Airtel to further bolster its strong spectrum footprint in these seven circles, with the addition of 43.4 MHz spectrum in the 1800 MHz band. Also, Airtel will also be able to expand its user base following the acquisition, which is subject to requisite regulatory approvals.

As part of the agreement, Airtel will acquire Telenor India’s running operations in seven circles – Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP (East), UP (West) and Assam.

Airtel said that these circles represent a high population concentration and therefore offer a high potential for growth.

The move comes at a time when the industry is going through an intense consolidation phase with Vodafone and Idea involved in merger talks and Reliance Communications finalising its acquisition of MTS India and a merger with Maxis-owned Aircel. Analysts say that Reliance Jio’s entry with disruptive voice and data offers is driving consolidation in India.

The proposed acquisition will include the transfer of all of Telenor India’s assets and customers, further augmenting Airtel’s overall customer base and network.

Airtel said that it would ensure quality services to Telenor India’s customers, while offering them the added benefits of its innovative product portfolio, access to superior voice & data services, mobile banking, VAS and domestic/ international roaming facilities. Telenor India’s operations and services will continue as normal until the completion of the transaction.

 “The agreement underlines our commitment to lead India’s digital revolution by offering world-class and affordable telecom services through a robust spectrum portfolio spread across multiple bands. On completion, the proposed acquisition will undergo seamless integration, both on the customer as well as the network side, and further strengthen our market position in several key circles. The customers of Telenor India will now be able to enjoy India’s widest and fastest voice & data network, and a range of Airtel’s world-class products and services,” Gopal Vittal, Managing Director and CEO (India and South Asia), Bharti Airtel, said in a joint statement.

“The acquisition of additional spectrum through this transaction, which made an attractive business proposition, has further enhanced our already robust spectrum portfolio. The proposed transaction will also create substantial long-term value for our shareholders given the significant synergies,” added Vittal.

Sigve Brekke, Chief Executive Officer of Telenor Group, said the today’s agreement is in the best interest of our customers, employees and Telenor Group. Finding a long term solution to our India business has been a priority for us, and we are pleased with our agreement with Airtel.

“The decision to exit India has not been taken lightly. After thorough consideration, it is our view that the significant investments needed to secure Telenor India’s future business on a standalone basis will not give an acceptable level of return,” he added.