Now the 1 October deadline is over. The Department of Telecommunications (DoT) has received over 400 appplications for universal accesss service licences (UASL). Now that's not 400 companies. Each of the new bidders has filed 22 applications each to cover the entire country. (The bidders have to file a separate application for each of India's 22 circles--that is equivalent to a state).
Among the big names who have filed in their bids are AT&T in collaboration with Mahindra Telecommunications and Russia's Sistema with Shyam Telelink. Many of India's telecom companies that lost out in the race earlier like Himachal Futuristic Communications Ltd (HFCL)are also in the race. The surprise entry is from a host of Indian realty players including Delhi-based DLF, Unitech and Parsvnath. All of these are flush with cash and are looking to make a splash in telecom.
Not surprisingly, all of the new players are looking at just marketing their venture. This is what Bharti Airtel did, but years after it started services. Videocon for example is looking to use its 15,000 strong retailer network to sell the service.
Will all this work?
It all depends on what norms the DoT come up with. After all setting and running a telecom network does not mean just plonking Rs 1,600 crore on the table. But, there are enough telecom professional in India who can help these companies roll-out their networks.
So do we see calls at 20 paise a minute? Or will this lead to another round of consolidation a couple of years down the road?
I believe that there is no place for more than eight players. we already have six in each circle. So who all will last in the long run? Well, simply wait and watch as the latest saga unfolds.
Well, I think I should have also put in a bid last evening. But, then there is enough scope when one of these guys wants to sell it--at a premium.
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