Policy uncertainty to impact telecom sector, says Bharti

Policy uncertainty to impact telecom sector, says BhartiBharti Airtel Chairman Sunil Mittal has sad that the continuing uncertainties in the regulatory environment will impact the future of telecom sector and will impact the country's global competiveness.

"The recent regulatory developments in India will have significant implications on the future of telephony and broadband, as well as India's global competitiveness," He said while announcing het company's quarterly results.

Bharti Enterprises Deputy Group CEO and MD Akhil Gupta pointed out that 2011-12 was the most uncertain year in terms of regulatory policies and uncertainties remains large for the telecom players. He urged the government agencies to take steps that are n favor of the customers and the industry.

Meanwhile, the GSMA, which represents GSM operators from across the world, has said that the new recommendations of India's telecom regulator Telecom Regulatory Authority of India (Trai) would discourage investments in mobile broadband infrastructure and would also increase prices for the consumers in the country.

The TRAI has proposed a reserve price of Rs 3,622 crore for 1MHz of pan-India 2G spectrum in the 1800 megahertz band as against Rs 380 crore, which was set for auctions in 2008. Telecom service providers and experts say that if the recommended reserve price is accepted then this could increase costs for the players and will ultimately make service more expensive for the consumers.

The Cellular Operators Association of India (COAI) and the Association of Unified Telecom Service Providers of India (AUSPI) have also released a joint statement saying that recommendations are shocking and described them as being arbitrary, regressive and inconsistent.