Idea 3G Roaming Service in Delhi on Vodafone's Spectrum

[reshma]

It is well known fact that Idea Cellular does not have PAN India Spectrum for 3G Services [http://www.broadbandindia.com/mobile...overage-maps/] However, Idea has entered into an agreement with Vodafone and launched 3G Roaming in Delhi. Idea, Bharti Airtel and Vodafone have been talking about roaming arrangements amongst themselves to launch 3G in circles where they have not won 3G spectrum (non-3G circles). With Idea’s launch of 3G in Delhi, it has kick-started this exercise.

Vodafone will soon launch 3G in few of Idea’s circles where Vodafone does not have 3G spectrum. The financial arrangement between the operators has not been disclosed.

What is Idea's Business Strategy in Roaming Arrangement ?
3G margins from such circles (non-3G circles) will be at a significant discount to those circles where operators (in this case Idea) have 3G spectrum. We opine that Idea will not get aggressive in acquiring 3G customers in non-3G circles because this is more like a point of presence strategy.

[komal]

The 3G roaming arrangements that operators are signing is pretty interesting because, and could be il-legal, it amounts to spectrum sharing but the operators are calling it roaming arrangements. In strict parlance, roaming means that the subscriber is “visiting” a service area where its telecom operator does not offer services but provides connectivity to the subscriber by entering into roaming arrangements with other telcos. In 3G roaming arrangements (the one signed between Idea and Vodafone) the subscriber is not a “visiting” subscriber but is originating in those circles where the operator does not have 3G spectrum. This, in our view, amounts to 3G spectrum sharing which is currently not allowed by the Government of India