IT'S an Indian version of Keiretsu (a Japanese term where different companies work in tandem, feeding each other's demand and supply). Nine of the country's premier cellular operators have decided to form an alliance—World 1 Network—to provide automatic roaming services to subscribers within the nine circles that these companies operate in.
At present a cellphone can be used only within a city. Since only four metros have cellular services till now, a subscriber will need four different SIM cards to use the phone in different cities. By the end of this year, all nine circles are supposed to go cellular. Which means if a person is travelling all over the country, he/she has to buy nine SIM cards—and have nine different phone numbers—to be able to use the phone all over. With World 1, a user needs just one SIM card and one number.
Says Analjit Singh, chairman Hutchison Max: "Once the RBI sorts out the foreign exchange payments, the roaming services can be extended virtually to the entire world. We are in dialogue with the authorities and are optimistic of resolving various issues soon."
Roaming was inevitable. But that it will be announced less than a year after the first cellular call was made in India is revolutionary. Says Ashwini Windlass, managing director, Hutchison Max: "World 1 will change cellular telephony in India." Adds Sunil Mittal of Bharti Cellular: "Now we can safely say that there is absolute no technology gap in cellular services between India and the developed world."
However, Singh is not so sure about the initial response to the concept. "Initially we expect between 15 and 25 per cent of the subscribers to opt for World 1 Network," he says. The World 1 Network SIM card will also cost more than any of the single-operator SIM cards. While the actual price has not yet been fixed, "it will be far cheaper than subscribing to all the nine individual SIM cards," Singh says.
Each SIM card costs Rs 4,200, while a World 1 card could be anywhere between Rs 5,000 and Rs 10,000. Calls made on the card are also likely to cost almost 20 per cent extra. So at peak hours, a World 1 call will cost a subscriber over Rs 20 a minute compared to the current Rs 16.80. The nine operators will share the revenues in a 80:20 ratio. Which means that if a Bombay subscriber calls a Delhi number on World 1, Hutchison Max will earn 80 per cent of the charge while Bharti Cellular in Delhi will get 20 per cent.
World 1 members will form a fund with an estimated corpus of Rs 80 crore after two years, to develop infrastructure and promote the World 1 brand. Once the alliance becomes operational, centralised billing and purchasing will also be undertaken. Says Singh: "The cornerstone of this alliance is the ability to work together. Synergy exists among us as we see an opportunity for growth while minimising competitive conflicts."
That may be up to the MRTP to decide, but the second round of such an alliance is likely to be among the remaining operators. Observes Singh: "I won't be surprised if they (the remaining operators) set up other alliances within two weeks." Watch out for another round of rate wars. But by the end of the year, when all circles start cellphony, this facility will surely change the entire concept of the cellular phone.
