Jon Fredrik Baksaas, the CEO of Norwegian company Telenor, is urging the Indian government to bring some clarity to the country’s telecoms regulations in the wake of the 2G licence scandal.
In an interview with the Financial Times, he said that the…
Jon Fredrik Baksaas, the CEO of Norwegian company Telenor, is urging the Indian government to bring some clarity to the country’s telecoms regulations in the wake of the 2G licence scandal.
In an interview with the Financial Times, he said that the unpredictable regulatory environment may deter foreign investments in the country.
Telenor is among the several mobile operators that may see its telecoms licences being cancelled, following months of controversy surrounding the allocation of underpriced 2G spectrum in 2008 and allegations of favouritism.
Former telecom minister A. Raja was even forced to resign after a report from the Comptroller and Auditor General of India (CAG), the government’s auditor, claimed that the 2G scam caused a Rs1.76trn (US$40bn) loss to the country.
Earlier this month, the new telecoms minister, Kapil Sibal, said that notices would be soon sent to several cellcos asking them to explain why their licences should not be cancelled. From reception of the letters, the companies will be given two months to respond.
The operators most likely to have their licences cancelled are those that failed to meet their rollout obligations and fulfil certain eligibility requirements.
In related news, Indian Prime Minister Manmohan Singh said on Monday he was willing to be questioned by a parliamentary panel over the 2G scam, adding he had nothing to hide, according to reports.
Singh, who has enjoyed a reputation for honesty since becoming PM in 2004, is reportedly looking to protect his legacy. Although he is not suspected of any direct wrongdoing, investigators are interested in knowing why it took Singh more than a year to examine a request from the opposition to prosecute A. Raja.
