In 2008 , to accelerate the boom in telecom sector, new licenses were given to telecom operators, many of them quite young and inexperienced in the sector ,whole giving away turns to be a billion dollar scam.
As the Growing telecom market experiences a crunch for telecom spectrum, the Telecom commission has given directives to the Department to frame a suitable exit policy for the new operators,as reported by Times of India.
Industry analysts are of the opinion that the new entrants will look at these exit options as many of them are not even given access to the spectrum allotted to them .Among the new players, Loop telecom has expressed its desire to leave the sector .
The possible outcome of a scenario in which new players exiting the sector will lead to a huge increase in DoT’s Spectrum reserves .The biggest gainers out of these decision could be the major players like Bharti, Vodafone, Idea, Tata andReliance, who could consolidate their existing operations and will be able to serve a much bigger customer base.
The exit of new players will also result in less competition and thus an increase in mobile tarrifs.