New Telcos Adopt Quit India Policy

After S Tel Pvt. Ltd., it is the turn of Etisalat DB Telecom India PVT Ltd. to exit its Indian operations, according to a recent report in Economic Times.

The recent Supreme Court judgment of cancelling 122 licenses has provided an easy option to operators who were looking to exit the Indian operations.

"Some operators who were not significantly operational in the country might exit but this judgment is unlikely to impact the industry in any big way. The operators who were lying dormant and have otherwise very little to offer will exit," says Deepak Kumar, Research Director - Telecommunication Research at IDC.

At the same time, companies like Uninor and Sistema Shyam TeleServices Ltd. who invested significantly in setting up the infrastructure will explore all options to continue with their operations in the country. "The companies who have started their services and invested significant amount will explore every possible way to stay in the market," feels Kumar of IDC.

Uninor has said that they will be continuing in the Indian market, but with a different partner. MTS, on the other hand, has indicated they are considering legal action against the government. Both companies have indicated they might participate in the 2G auction.

Worst affected from this judgment are employees of the companies who will be closing down their Indian operations. These employees would be anxiously looking out for new openings. Unfortunately, with low sentiments prevailing in the industry, there aren't likely to be too many vacancies available.

Gagandeep Kaur, Editor, Light Reading India