By Telecom Lead Team:
Operators such as Uninor, Loop, MTS, Etisalat, S Tel, Videocon, Idea Cellular
and TTSL have invested around $5 billion for rolling out mobile services in their
new circles in India in the last four years.
Mobile players such as
Uninor, Loop, MTS, Etisalat, S Tel, Videocon, TTSL and Aircel have invested
around $1.7 billion in 2008, close to $1.4 billion in 2009, around $1 billion
in 2010 and nearly $1.2 billion in 2011 for mobile infrastructure (including 3G
and excluding fixed line). However, Aircel does not fall in the category of
operators who were allotted license in 2008. Idea Cellular invested close to
$3.6 billion in 4 years in all circles.
Supreme Court,
who cancelled grant of all 122 2G licenses issued in January 2008, is not clear
on who will protect their investment in India in the last four years. If TRAI
cannot come out with proper regulation to share 2G spectrum in four months, the
telecom industry will be doldrums.
There should
be clarity on the foreign investment in India. Most of these companies have not
violated any regulation. Who will protect them,” said a senior official with a
telecom equipment vendor.
The only
silver lining is that the order will bring more transparency to the system
besides clearing the existing issues.
The
Supreme Court has cancelled the 122 2G spectrum licences granted by
former telecom minister A Raja.
Uninor, Loop, MTS, Etisalat, S Tel, Videocon, Idea, TTSL to
face music
This
will have a major impact on the telecom investment scenario in India. Mobile
users are unlikely to affect since most of the new licences holders have
insignificant market share in the Indian telecom market.
If TRAI goes ahead with
fresh 2G license auctions in the next 4 months, these operators may / may not
get spectrum. Plus, there will be further delay in telecom investment in India.
The SC order has the potential to affect investment sentiment in the country.
India
considers Supreme Court order as the supreme order. Usually, PMO does not step
in to solve. Will government support telecom investors?
editor@telecomlead.com
