TRAI alarms Finance Ministry against entry of foreign players

New Delhi, May 9 (UNI) Telecom Regulatory Authority of India (TRAI) today alarmed the Finance Ministry that allowing foreign telecom players in 3G sector will have serious implications on the domestic telecom sector.

''The Authority firmly believes that allowing participation of new prospective service providers for 3G services, at this juncture, will have serious implications on Indian telecom sector, you may like to revisit the issues before finalising the Ministry's position on the subject,'' TRAI Chairman Nripendra Misra said in a letter to Finance Secretary D Subbarao.

The telecom watchdog last month rejected the Department of Telecom's proposal which had asked it to pave the way for global auctioning of 3G spectrum by incorporating necessary changes in its rulebook.

TRAI had earlier opposed the government's move to auction spectrum globally, saying the existing telecom players have already made substantial infrastructure investments and added that they will be in a better position to deliver 3G services efficiently at low incremental cost.

The regulator, Mr Mishra said, had reiterated its earlier recommendation opposing foreign players' entry after taking into consideration various factors.

The factors include number of existing licencees, the likely quantum of spectrum available for 3G services, the present licencing regime and the need to have 3G services at affordable rates.

UNI SBA PDT US2015