The communications ministry is formulating a policy to allow companies that were given mobile phone permits by controversial former telecom minister A Raja to exit the sector provided they agree to forfeit the bulk of the entry fee. Ministry officials with direct knowledge of the development told ET that allowing these operators - some of which have not been able to start operations - to exit would be a better option compared with cancelling the licences, a course of action recommended by sector regulator TRAI. The Department of Telecom , or DoT, feels that cancellation could potentially lead to protracted legal proceedings, which could paralyse the sector for years and prevent consolidation in the 14-player market. "We are working on an exit policy - we plan to announce this along with a mergers and acquisition policy for the sector - the details are being worked out," Telecom Minister Kapil Sibal told ET.
No comments:
Post a Comment