DoT's entry in cellular telephony detrimental
Press Trust of India
New Delhi, Jan 20: The country's premier financial institution ICICI has warned against the entry of Department of Telecommunications (DoT) as a third cellular operator, saying it would be detrimental to existing operators.``The entry of third operator before consolidation of business would be detrimental to existing operators. DoT should refrain from entering as a third operator at least for another five years,'' ICICI said in a presentation to the core committee on infrastructure. This is in line with the apprehensions of private cellular operators who feel that a third operator would ``hasten their demise''. Private operators are struggling to find financiers for their projects which have considerable revenue risks and long gestation periods. ICICI -- which is financing some metro cellular projects -- has, however, said, ``as and when a third operator enters, same licence fee should be levied on the third operator''. It has also supported the demand of the industry for an extension of the
licence period. The cellular licences have been issued for a 10-year period, while basic licences extend to 15 years. The total funding requirement of telecom companies is estimated at Rs 45,000 crore of which over 55 per cent is debt funding.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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