Telecom ministry mulls exit policy for operators
28 Jun 2011
India's telecommunications ministry is working on a policy that would offer an exit route to service providers who are facing probes under the recent 2G (second generation) spectrum scam.
An internal committee, set up by the Department of Telecommunications (DoT), has suggested that the Telecom Regulatory Authority of India (TRAI) be asked to recommend an exit route policy for the telecom licensees who wish to surrender their licences and the spectrum, according to media reports.
The policy will essentially entail surrendering the start-up allocation of 4.4 Mhz of spectrum allotted to these operators.
The move gains importance as some of the telecom firms are defaulting on rollout of services, while others are embroiled in the recent 2G scam.
The telecom licensor DoT's move is significantce as existing norm is to elicit the recommendations of the regulator, TRAI, before formulating policies.
Some of the new operators have been lobbying for an exit route since they are finding it impossible to endure the cutthroat competition in the telecom market.
