other banks ATMs for free

with this new liberation of using any bank's ATM to withdraw money, the consumer sure will benefit, but in the long run, will they? i have the following 2 questions:

1. if i am an icici, and i currently have 4 odd ATMs in each locality, should i still maintain all of them? will i be better off (read "save maintenance money") by having just 1 atm instead of 4 atms's?

2. if all banks suddenly decide to use this opportunity to reduce the number of ATMs they had been forced to operate, will it result in lesser number of ATMs in existence, which again will lead to serpentine queues?

i am assuming that 80% of the people going into ATMs in india do it to withdraw money. those guys will surely benefit by being able to withdraw from any ATM. but if the banks indeed bring down the number of ATMs they operate, the other 20% will stand to lose a lot, as they will see additional queues outside their preferred bank ATM, and hence result in bad user experience.