DoT Readying Policy To Show The Door to New Operators

DoT Readying Policy To Show The Door to New OperatorsA 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.

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24 Comments on "DoT Readying Policy To Show The Door to New Operators"

 

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PD
September 9, 2011 4:51 pm 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 5:03 pm 5:03 PM
Idris :@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 ? 🙂 Its okay Idris, maybe Rajiev meant “developed” or “first world” countries and… Read more »
Sandeep
September 7, 2011 12:28 pm 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

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