DoT to merge Mumbai, Kolkata telecom circles with Maharashtra, West Bengal

The Department of Telecom is considering the merger of Mumbai and Kolkata circles with Maharashtra and West Bengal service areas - a step that will end roaming charges on subscribers traveling from these two cities to other parts in respective states and vice versa.

"It is at proposal stage to merge Kolkata with West Bengal and Mumbai with Maharashtra, like Chennai has been merged with Tamil Nadu circle. The DoT will take it up after getting Trai's (Telecom Regulatory Authority of India) recommendation on auction of 900 Mhz and 1,800 Mhz," an official source told PTI.

At present, DoT treats Kolkata and Mumbai as separate telecom circles.

The discussion to merge certain circles was started in 2004 by then telecom minister Dayanidhi Maran. He had asked the DoT to merge Chennai service area with Tamil Nadu, Mumbai with Maharashtra and Kolkata with West Bengal so that customers would not be required to pay roaming charges within a state.

Later, plans for merger of Uttar Pradesh West and East were also taken up.

In 2005, only Chennai was merged with Tamil Nadu.

At present, roaming charges between metro and their respective states are either minimal or nil due to fierce competition in market. Merger of circles will formally lead to end of roaming provision with same state.

"Consolidation of circles in India to a smaller number of Local Service Areas makes sense as it reduces administration as well as artificial differences in tariffs due to inter-circle roaming charges. In the longer term we should expect more of this," PwC India Telecom leader Mohammad Chowdhury said.

He said most countries do not have the concept of circles.