Regulatory disturbance of 2011-12 continues: Sunil Mittal

Recent regulatory developments, which have led to huge uncertainty, could have significant implications for the future of telecom sector and impact India's global competitiveness, Bharti Airtel chairman Sunil Mittal said today.

"The recent regulatory developments in India will have significant implications on the future of telephony and broadband, as well as India's global competitiveness," Mittal said in a release announcing the company's results for FY'12.

Meanwhile, Bharti Enterprises Deputy Group CEO and MD Akhil Gupta told reporters at a conference, "This was perhaps the most disturbed year (2011-12) on the regulatory front...The uncertainty not only continues but it is huge."

Gupta said the government should take pro-customer and pro-industry decisions with regard to the spectrum pricing.

The comments follow the Telecom Regulatory Authority of India (Trai) recently issuing recommendations for the sale of spectrum, after the Supreme Court order that cancelled 122 licences for 2G (second-generation) telephony.

Trai has suggested a base price of Rs 3,622 crore for a megahertz (MHz) of pan-India spectrum, which is around 10 times higher than the price at which 2G licences bundled with 4.4 Mhz spectrum were allocated in 2008 under the then Telecom Minister A Raja.

According to Trai, a minimum of 5 Mhz spectrum should be allotted, which means that pan-India airwaves in 1800 MHz band will cost Rs 18,000 crore.