Telecom industry has been instrumental in revolutionizing the lives of common Indians. The mobile phone and now the internet has been in focus of late at almost every level be it policy, corporate, consumer etc. But the industry is going through turbulent times. The 2G scam, the steeply priced 3G spectrum, tax claims… the list is endless. It doesn’t make for a good reading as telecommunication will go a long way in determining our future growth rate as we are in the information age.
Let’s have a look at some of the problems plaguing the industry. Let me divide the problem into two parts based on the technology involved; 2G and 3G.
2G: If you look at problems in this space, the 2G scam comes to your mind straightaway. Undoubtedly it’s a blot on the Indian face. And its findings will certainly leave many embarrassed but let’s not waste our time over these facts related to the scam. Instead, let’s concentrate on the other major issues related to 2G. The one that comes to the mind is “too much competition or should I say too many players”. While FCFS basis used to allocate spectrum helped keep the cost down hence low tariffs but it allowed too many players to enter the fray.