Telecom Regulatory Authority of India (TRAI) has released the recommendations on “Lock-in period for Promoter’s Equity and other conditionalities for Unified Access Service Licensees (UASL)”.
The Telecom sector in today’s India is intensely competitive with 281 Access service licensees. Of these, 121 UAS licenses were awarded in January, 2008. The total number of telephone connections stood at 400.05 million at the end of January, 2009. Despite the phenomenal growth, the overall tele-density is 34.50% and the rural tele-density is only 13.13%. Clearly, there is tremendous scope for further expansion of network requiring further infusion of capital. With the growth being contributed mainly by mobile telephones, availability and efficient utilization of spectrum, which is a scarce national resource, assumes importance. Any exploitation for undue gains either in terms of price of the spectrum or its framework for usage under a telecom license should not be allowed as it would defeat the goals of competition and would also be counterproductive for the industry as a whole.
See Press Release
Source: TRAI