The Indian Department of Telecommunications was quoted as saying any decision to allow mobile operators to give their 2G licences would be taken jointly with the Ministry of Finance.
The Telecom Commission, a DoT entity, will be first to examine the…
The Indian Department of Telecommunications was quoted as saying any decision to allow mobile operators to give their 2G licences would be taken jointly with the Ministry of Finance.
The Telecom Commission, a DoT entity, will be first to examine the matter. The DoT will then approach the Finance Ministry to discuss available options, according to senior DoT officials cited by the Press Trust of India.
A few weeks ago, telecom minister A. Raja told local reporters that the government would provide exit routes to new telecom operators that got licences in 2008.
The exit options being considered include allowing new entrants to merge with larger companies, therefore shortening the three-year period during which a founder of a telco cannot sell out, and relaxing rules to allow incumbents to retain bandwidth held by these new companies in case of a buyout or a merger.
Such a move is expected to help thin out India’s crowded mobile phone market, currently populated by 14 operators.
