DoT Readying Policy To Show The Door to New Operators

By September 6th, 2011 AT 11:29 AM

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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