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Pager beeps getting fainter...

V. Rishi Kumar

HYDERABAD, Feb. 19

WITH mobile telephony set for growth following a series of changes in the regulatory framework, a potential downside to the telecom industry is the choking effect it will have on the nascent paging industry.

Within barely six years of the paging industry rolling out into India, there is a growing feeling among the industry circles that this sector has received a short shrift from the Government, vis-a-vis the cellular industry.

Yet another disadvantage the paging industry suffered from was having to grow in a market environment where cellular and paging devices were launched simultaneously.

The rapid changes in the cellular industry and the certain entry of the Code Division Multiple Access (CDMA)-based Wireless in Local Loop (WiLL) phones in the next month or so will see fewer pagers beeping, unless certain policy changes are brought about for the survival of the paging service providers.

While ensuring reasonable returns on investment, they have to first look at retention of existing customers. The industry is losing customers by the day, with the price differentials between cellular telephony and paging gradually blurring.

Even as the Telecom Regulatory Authority of India (TRAI) is collating information from various industry players and pager users, particularly with regard to licensing issues of the paging industry, the number of operators required in various circles and the service charges, the industry is fighting with its back to the wall.

While the Government's efforts to spread the use of paging is welcome, the survival of existing operators is more urgent than the addition of new operators.

While spectrum availability is not a problem, one area which the paging industry could gain is through revenue-sharing which will be mutually beneficial.

Reduction in rental for paging services will certainly increase the customer base, as it has the potential to penetrate the low-income segment.

During an interactive meet of representatives of radio paging industry, Mr R.R.N. Prasad, TRAI member, said that the paging industry needed support to survive.

Mr Amit Reshamwala of Page Point Services said that with the viability of the industry itself being questioned, more operators would not be a welcome step.

And if the business itself is not viable, the industry cannot provide value-added services.

``With the financial viability remaining a major issue, only if the issues with regard to licence fee and revenue- sharing are sorted out, expansion can take place and bring in more employment, as this has low capex per job and a majority of the employee s are women.''

Mr Balaji of Easy Call Communication said that instead of new operators, the existing players can be allowed to expand their operations within the circle.

Mr Sriramulu, CGM, Hyderabad Telephones, said, ``There is little justification for limited operators if the objective is to reach more people. The WiLL phones will sound the death-knell of the paging industry.''