Centre working on exit policy for telecom firms

India's apex policy-making body in the sector, the Telecom Commission has directed the department of telecom ( DoT) to prepare an exit policy for operators. Several players combating the dual threats of market viability and licence cancellation following the 2G spectrum scam will be benefitted by this step.

In 2003, the government had allowed telcos to migrate from limited mobility to full mobility. In this scenario, the sector's first ever exit policy can set a precedent for future exits from any government concession agreement-based businesses. 

The policy might allow firms to sell out, or surrender their licences. The government might come to the rescue of the operators if it comes out with the exit policy as the latter have been witnessing turmoil since 2008. The process is likely to be watched with interest, considering its wide-ranging implications on the competitive landscape, M&As, investments, bank loans, and overall development of telecom across India.

Source: http://cablequest.org/news/telecom-news/item/1054-centre-working-on-exit-policy-for-telecom-firms.htmlSource: http://cablequest.org/news/telecom-news/item/1054-centre-working-on-exit-policy-for-telecom-firms.html