News

The Indian telecommunications market has been the stuff of dreams for many multinationals, with a huge population, low market penetration and expectations of fast growth.



However, the market is presenting numerous issues for the major telcos like Telenor, Vodafone and others who have invested recently with hopes of cashing in on India's growth potential.



Issues around spectrum, high licence fees, restrictions on mergers and acquisitions and other regulatory uncertainties are amongst the hurdles. The Indian government remains "keen to control each and every consolidation".



Telenor's Uninor has already launched in eight regions and is planning investment to build operations in all other Indian regions within 3 years. However, the government's delay on issuing rights to spectrum is holding Uninor back.



Despite the challenges, foreign investors remain keen to get their teeth into India.



Vodafone is considering deals once the Indian government relaxes limiting consolidations and is bidding for more spectrum, due to finalise this week.



PriceWaterhouseCoopers executive director, Sandeep Ladda says "The country has many positives. With their global facilities, many players will bring in new concepts and dimension to the market. India is more of a reactive market in the way it works and in terms of the variety of services rendered," he said.