Sunday, September 18, 2011
The Great Telecom Circus
The Great Telecom Circus
Government of India is thinking for pan India license and also discussing the possibilities for companies who dont want to pursue mobile operations to surrender their license. This will lead to a potential mobile call rates escalation all over the country. Currently there are over 15 operators in some of the circles. Considering this move of Government, it will result in few bigger operators and will wipe out the smaller companies which currently have operations in some of the 22 circles of our great country. So who will be benefitting from this situation.Obviously Government. Lets see how.
If the existing smaller telecom companies merge with the bigger companies, there will be tax benefits to Government. If they return the license to Government, Government will have additional spectrum which Government can sell at market rates given the hue and cry concerning the 2G scam. Also license fee is given by the companies. As competition will reduce, so the call rates in existing markets will go up. So is this the end of Great Indian Telecom circus.
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