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HindustanTimes Sat,26 Jul 2014

SC judgement to end policy paralysis, bring clarity: Experts

PTI  New Delhi, February 02, 2012
First Published: 21:47 IST(2/2/2012) | Last Updated: 21:48 IST(2/2/2012)

The Supreme Court judgement that cancelled 122 telecom licences in the 2G spectrum allocation scam will end policy paralysis in the government and lead to transparent rules, experts said on Thursday.

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Besides, it will provide an opportunity to the government to make quick decisions and could lead to the entry of some mature MNCs in the telecom sector, they added.

"This move (judgement) has been to cleaning up house and make policy making and regulations more transparent. As a result of this 2G scam and other issues there has been virtual paralysis in decision making at the ministry and regulatory level which was starting to hurt industry," Research Director at Gartner Kamlesh Bhatia said.

He added that due to uncertain policy environment telecom operators were unable to decide on big plans.

"The operators themselves were not sure what decision the ministry will take, so their own planning was not moving in the direction it should have. From that stand point this judgement will start the new process," Bhatia said.

Deloitte Haskins and Sells partner Hemant Joshi said, however, that the judgement is likely to add to the uncertainty surrounding the telecom sector.

But there is a silver lining as the judgement will put pressure on the Government to close this matter within 4 months, he added.

"This (judgement) will add to uncertainty. There is a flip or positive side to it. Four month period that SC has given in the judgement provides an opportunity to end uncertainty. Once this is resolved, operators can look forward to stable policy," Joshi said.

He also said the judgement provides a good exit option to operators who haven't rolled out networks in future.

"From a long term perspective it is going to help Telecom industry as a whole," said Benoy C S Director for ICT Practice at Frost and Sullivan for South Asia and Middle East.

"It will open up the opportunities for some global telecom companies who missed the race earlier to invest in Indian telecom industry," he added.

He added that India will see the entry of some mature multi-national companies which will bring in a healthy competition and better quality of service.

However, some experts said that the judgement can have negative impact on foreign investors.

"The foreign investors likely to adopt cautious approach while taking investment decision. The issues which arise from verdict unless resolved quickly will create lot of uncertainty which could again have negative impact on foreign investment in India," Joshi said.


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