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A fastest growing telecom market combined with lowest tariff, 15 operators’ tussling, severe spectrum crunch – it is in India.
In 2008 new licenses were given to some new operators, till date even spectrum is not given to them. The whole give-away turns to be a billion dollar scam.
In this moment, with ongoing CBI investigation, Telecom Commission advised DoT to prepare a exit policy for new operators, as reported by TOI. It has been on the news that 74 notices to be sent to different operators for delayed roll out. Among new players only Loop Telecom expressed their desire to leave the sector.
Times Of India also cites industry watchers say new entrants will look at the exit option with tremendous interest. At least one new operator ( Loop Telecom) has already informed the Supreme Court of its desire to surrender its licence.
Huge amount of valuable spectrum will find its way back to DoT’s reserves in case the government goes ahead with an exit policy for telecom operators.
In such a scenario, it is likely that the biggest gainers could be large, entrenched players like Bharti, Vodafone, Idea, Tata and Reliance as these companies desperately seek spectrum to serve their growing customer base.
If spectrum becomes available in abundance, the demand-supply equation will push down their spectrum costs even if allocated through a transparent auction process.
So whats you take on this latest move do let us know via comments.
PD September 9, 2011 at 4:51 pm
Power corrupts and absolute power corrupts absolutely ! Feel pity for the newcomers for, inside the rooms, they were being kicked, day-in/day-out these days by the dominant players ! The referee- TRAI -is now satisfied and gracefully opens the door ! I remember a cartoon strip of the great RK Laxman, years back, showing few members coming out of the party-high command board-room rattled, bruised, shattered but still saying “great, memorable and cordial experience !”
Mukul September 7, 2011 at 5:03 pm
Sandeep September 7, 2011 at 12:28 pm
Let DOT & TRAI implement this first…
Even by doing this we are closing investment from foreign country & will be critisized by foreign country as we sold licence. However, with lesser cost. but they invested more than 2000Cr. in infrastructure which is a huge amount for any company…
they will never invest in India any more & it will be a big shame on India
Gourav September 6, 2011 at 9:49 pm
will uninor launch their gsm services soon in remaining circles like haryana?
San_Jay September 6, 2011 at 9:10 pm
@Idris
well said brother !!
bibodh September 6, 2011 at 9:05 pm
yes there is no remarkable profit in telecom industry
the operators invest as low as possible by using cheap china made equipments
tower sharing,even they are paying less to the employees,vendors,retailers,distributors.as it was before the great telecom revolution
krishnendu September 6, 2011 at 9:03 pm
nice thought.
suvra September 6, 2011 at 8:43 pm
@Raaj
Uninor is really very promising…
doc_dip_rgkmc September 6, 2011 at 8:38 pm
nice move AIRTEL AND GANGS–kicking out competitors from the scene–>accquring more valuable spectra in hand–>increasing call rate for 2nd time—>fooling indian who are dependant totally of mobiles–>have to pay hefty amount for 1min call—>LOOT LOOT LOOT FROM US
Raaj September 6, 2011 at 8:15 pm
Nice move.but uninor and mts are really promising.they should be allowed to stay so that competition never dies
Mahmood Junaid September 6, 2011 at 8:08 pm
good move… quality of service is the most important…
sAm September 6, 2011 at 7:14 pm
It will b better if d exit door is shown to DOT,TRAI & all those first.
sAm September 6, 2011 at 7:12 pm
@rajiev
ri8ly said
Idris September 6, 2011 at 3:44 pm
@rajiev What do you mean by civilized country ? do u mean We are uncivilized? What kind of citizens do we have , Indians call their own country uncivilized ? WoW ! India ha a huge population and lots of youth are jobless even they are highly qualified , so more operators we have more job opportunities we have if youth remain unemployed crime increases ……We need to cut dowm these MLAs and Ministers and political parties,,,they are root cause of corruption, What u say ?
Rohan Singh September 6, 2011 at 2:55 pm
China most populated country has 3 operators only. I too want Loop, videcon, stel, cheers to be kicked out of the Telecom market. Where as Uninor and Aircel may loose some circles, which i don’t want.
vipin September 6, 2011 at 1:43 pm
I agree that this move will only reduce competition and higer tariff.
rajiev September 6, 2011 at 1:28 pm
what about india population compare to civilized country!
Arjun Chandrashekar September 6, 2011 at 1:22 pm
@Abhijit
Don’t Worry Aircel Will Stay In The Market as They Were Staying in India For More Than 10 Years and More Than 2 Years in Most Of The Circles
Subhendu Mukherjee September 6, 2011 at 1:10 pm
Yes you are correct. When I visit Delhi with Docomo it works on Vodafone or Reliance GSM. Incoming and outgoing calls are charged at higher rates instead of 1p/sec for both incoming and outgoing.
Abhijit September 6, 2011 at 12:39 pm
Nice move by DOT. Cheers, Loop, Videocon should exit from market . As Loop & Cheers are not rolling out properly. And videocon uses other operators network in many circles to roll out their own network. But Mts, Uninor, Aircel should stay in market and now start expanding their network in each circle.
Kaushik Roy September 6, 2011 at 12:15 pm
In every civilised Country there are abount 6-7 operators per circle
only in India you will get 13-14 operators per circle
so it will be better if number of operators reduced
jitender September 6, 2011 at 12:01 pm
“Cheers”(etisalat) should be out from the DELHI TELECOM CIRCLE. Because this company is not active and serious about delhi circle. Its spectrum should be given to TATA DOCOMO.
Lovable September 6, 2011 at 12:00 pm
this will reduce competition in the market and hence increase in the tariffs. service quality will remain the same becoz till now very less has been invested in quality service, name any operator.
MOHAMMED TALIB September 6, 2011 at 11:39 am
GOOD STEP TAKEN BY DOT.