Telecom Regulatory Authority of India on Friday rejected department of telecommunication's proposal to reconsider allowing foreign players to offer 3G telecom services, saying existing players would be able to roll out network faster.
"As the existing licensees have already made huge investments in the infrastructure and their systems are in place, therefore, they will be in a better position to deliver 3G services efficiently at low incremental cost," Trai said in its views on permitting new entity for 3G Services.
With the number of service providers going up to 13-14 in each circle, the regulator said there would be sufficient competition to ensure that
the spectrum is priced competitively, discourage cartelisation and offer services that are acceptable in terms of quality and price.
DoT, in its letter earlier this month, had asked Trai to also include other prospective operators with foreign partners who fulfill the conditions for getting Unified Access Service licenses.
"The authority firmly believes that in the interest of the growth of Indian telecom sector, the entry of this kind must be strongly discouraged," Trai said.
Earlier during the day, Telecom Minister A Raja had said that DoT would issue new guidelines for 3G mobile services and allocation of spectrum for the prospective bidders.
