Monday 21 February 2011

Indian Telecom Industry marred from all sides


Investors are shunning the telecom scrips. Operators are worried over reduced profitability and enhanced competition. Aam Admi fed up with reading frontpage scam stories. CAG, A.Raja, TRAI, DOT,BlackBerry,  Kapil Sibbal ,mud slinging among operators blah.. blah.. blah.
Once cynosure of all eyes, now getting marred from all sides.Indian Telecom sector has contributed significantly in the overall growth of the country. Mobile telephony and internet have brought revolution. Even during economic recession time this was the one industry which was least affected and growing at its own pace unaffected.Indian government too was happy collecting huge revenue in terms of license fee and taxes.Many old  forgotten consumer electronics brands suddenly reappeared in the form of mobile handset brand. Consumers happy lot as telecom tariffs were the only thing which is getting cheaper day by day.
But too much of regulation, scams, government penchant towards killing the golden goose and excessive competition has ruined the industry. TRAI says that the companies will have to pay for extra spectrum held beyond 6.2 Mhz at market rate. Kapil Sibbal suggests that from now on license and spectrum won’t come together and both will be delinked. DOT asks operators to ban BlackBerry if doesn’t make interception ability available. Alleged scam by A.Raja has caused loss to government exchequer of lakhs of crore ruppes. Tariffs are at rock bottom level while government is planning to make every resource costlier for them. Now MNP is another worry for  for telecom operators. All of sudden everything has become so negative that if the government doesn’t handle this rationally ,this industry will loose its attractiveness.Now this industry is demanding some change in the status quo to keep itself afloat.

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