Telecom minister A. Raja confirmed on Tuesday that the government would provide exit routes to new telecom operators that got licences in 2008, according to local reports.
The exit options being considered include allowing new entrants to merge with…
Telecom minister A. Raja confirmed on Tuesday that the government would provide exit routes to new telecom operators that got licences in 2008, according to local reports.
The exit options being considered include allowing new entrants to merge with larger companies, therefore eliminating 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.
In the meantime, Raja is currently at the heart of a licence scandal. Earlier this week, the Supreme Court of India gave him 10 days to respond to allegations that he was involved in a scam for the allocation of 2G radio spectrum licences. The Central Bureau of Investigation is already investigating the case, after the Central Vigilance Commission (CVC) asked for a comprehensive probe.
